Scientists savage Labor hub plan

Scientists savage Labor hub plan

9.04.2008
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  • ACCC expected to release FuelWatch modelling
  • Departments warned scheme could push prices higher
  • Government sticking by its FuelWatch policy

THE competition watchdog is expected to release the modelling which convinced the Federal Government to go ahead with its controversial FuelWatch scheme.

The government is sticking by FuelWatch amid revelations four government departments thought it could push petrol prices higher.

In what has been the government`s toughest week since winning the federal election, a leaked cabinet document has revealed Prime Minister Kevin Rudd`s own department cautioned that FuelWatch could lead to "a small overall price increase" in the pump price.

But Mr Rudd defended the government decision, saying the Australian Competition and Consumer Commission (ACCC) was the only body that had done econometric modelling on the impact of FuelWatch.

"We`re confident in the ACCC`s position, we`ve rested our policy on that basis and we`ll be proceeding with this policy," he said.

Assistant Treasurer Chris Bowen told ABC TV he had spoken to ACCC chairman Graeme Samuel tonight, who had asked if it was appropriate to release the ACCC analysis given the interest in the decision.

"I said on behalf of the government, that`s fine," Mr Bowen said.

"It`s up to him how he handles it from here, but he will release that methodology and those conclusions in a spirit of openness.

"And so people can see why cabinet and the expenditure review committee, when weighing up all the evidence, decided this was the right proposal."

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Petrol leaks igniting FuelWatch debate   05/29/2008
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