Friday, 29 February 2008

Labor campaigns on lower grocery prices. Increases grocery prices.

During the recent Australian election campaign the Labor party attacked the then government on the increasing cost of groceries.

From the ALP's own website:
The Rudd Government has directed the Australian Competition and Consumer Commission to commence a formal inquiry into grocery prices to ensure working families are getting a fair deal at the supermarket.
And as recently as 23 January 2008:
Supermarkets are being put on notice with the Rudd government ordering the consumer watchdog to investigate grocery prices.

Labor says Australians are paying too much for the essentials and has directed the ACCC to conduct a formal inquiry into grocery prices.
People who were expecting the government to take action that would actually lead to lower grocery prices might be a little surprised by today's news:
Grocery prices will rise as new tax increases on truckies are passed on to consumers.

Federal Transport Minister Anthony Albanese announced that state transport ministers will implement National Transport Commission (NTC) recommendations to move towards full cost recovery for heavy vehicles.

Registration fees for 75 per cent of the nation's 365,000 heavy vehicles will now rise.

The commonwealth's fuel tax for trucks and buses - the Road User Charge - will be increased by 1.367 cents to 21 cents per litre from January 1, 2009.

Mr Albanese said the changes were necessary to ensure heavy vehicle users paid their fair share of road construction and repair costs.

But he conceded increased freight costs would be passed on to consumers.

"This will lead to a cost increase of around about 32 cents per week for the entire family grocery budget," Mr Albanese told reporters.

"We recognise that we'd rather not have any increases at all but I think that people will understand that (this) ... needed to be done."
Nah. It's OK, Mr Albanese. You go and increase all of the taxes you want. As long as you think that "people will understand" - especially when there's an upcoming massive budget surplus - then that's just fine with me.


(Nothing Follows)