Cormann reaches for his pen and his phone

Cartoon: By Bill Leak  

President Obama has been accused of ruling by decree in our language or to use the US term, by executive orders.  
Under this system a king, emperor, dictator, autocrat, or sundry despot picks up the phone and orders that his will be done.

It seems now that the minister for finance, Mathias Cormann has caught the bug and is using his pen and his phone, (to use the President’s own term) to increase fuel excise without senate approval: 

MOTORISTS are set to pay a $4 billion increase in fuel tax over the next four years despite the Senate’s objections to the controversial budget measure as the Abbott government uses administrative powers to impose the change. 

Finance Minister Mathias Cormann declared the government would adjust the indexation in the belief the change would be legislated in due course, ensuring the revenue could be raised while the Senate argues over the bill. 

The change will take effect from 10 November when the fuel tax will rise from 38.143 cents per litre to 38.6 cents per litre. 

The national average price for unleaded petrol was about 1.52 a litre last week according to the Australian Institute of Petroleum. …

The Liberals and Nationals are playing a dangerous game here if they are relying on Green support to pass this legislation.  While the Greens would welcome any legislation that raised the cost of fuel out of the reach of the poor, they will be in the box seat to move their agenda forward.

They will undoubtedly aim to eliminate the fuel rebate to non-road users, something they have always had in mind.  The fuel tax was originally designed as a user pays system of financing highway construction, although only a small portion goes toward that purpose.  The rest is pissed against the wall and the Greens are smart enough to understand that the LNP are desperate enough to sacrifice the mining and agricultural industries if it is needed to buy votes.

The Liberals have come up with some Gillardesque spin in attempting to blame Shorten in advance for any attempt to block this effort.  They are claiming that if it is not passed, the revenue raised will go back to ‘big oil’ and it will be all his fault.  There is a slight element of truth in this as the tax raised will be paid by oil companies and passed on to consumers.  If it fails to pass, the revenue will go back to those companies, not to the consumers.

It is however, completely dishonest to blame the opposition for a circumstance created by a unilateral decision by the government to start taxing now and waiting for the umpires verdict.

It is worth noting that from the figures above, about 25% of the cost of a tank of fuel goes to the government and they want more.