Federal Treasurer Joe Hockey’s now infamous line that poor people won’t be hit hard by a proposed fuel excise tax increase because they either don’t have cars or don’t drive far was like a red rag to a bull for community groups, which warned the Abbott government about the increase’s impact on Melbourne’s outer north.
Victorian Council of Social Service chief executive Emma King came straight out and said the Treasurer was “incorrect” and “out of touch”.
“We know when we go into growth corridors they don’t have the same access to public transport, so they rely on cars and spend a higher proportion of time travelling to work,” Ms King said.
“They are moving to these areas a lot of the time because of housing affordability and have to rely on cars to travel to jobs closer in.”
She echoed the comments of many in questioning the Treasurer’s data, pointing out that most studies showed the opposite of what he claimed to be the case.
“We have evidence that is backed up and shows when you are operating on a low income, car expenses takes up a disproportionate high amount of their income,” she said.
The National Growth Areas Alliance (NGAA), which represents 25 of the fastest-growing areas in outer suburban Australia, also rejected
Mr Hockey’s claims.
“Typically, residents in the outer suburbs are those with relatively high rates of car ownership, high expenditure on fuel, high mortgage costs, and generally level with or lower than the national median income,” NGAA chairman Glenn Docherty said.
“Even without higher fuel prices, to still sit for hours on congested roads will add to their burden as they don’t have the available choices that others enjoy to use their cars less.”
Federal McEwen MP Rob Mitchell was more blunt, calling Mr Hockey’s comments “disgraceful” and “insulting”.
Mr Mitchell, who had previously criticised the fuel tax in his budget reply tax in June, said in a statement: “We live in an electorate with the most cars per capita in Australia and we are by far not millionaires.
“These comments show just how out of touch the Abbott Government is with ordinary Australians.
“Our communities are going to feel the impact of the Abbott Government’s fuel tax more than anywhere else in Australia. We use our cars to drive to and from work, pick up the kids from school, do the shopping, and travel to specialist appointments.”
Mr Mitchell said 70 per cent of people in his electorate drive at least an hour each way to get to work.
“We use our cars because we have little or no other option for transport.
“Unlike our counterparts in the suburbs and the cities, we don’t have the luxury of just walking down the street to catch a train or a tram.”
