Rudd fuels inflation with alco-pops tax

July 23, 2008

The latest inflation figures show that the Rudd Government is doing nothing to help hard-pressed Australians deal with cost of living pressures and is just making things worse, the Shadow Minister for Business Development, Independent Contractors and Consumer Affairs, Luke Hartsuyker, said today (Wednesday).

“The current figure of 4.5pc is the highest for 17 years,” said Mr Hartsuyker.  “The Australian Bureau of Statistics notes that we’ve seen the largest quarterly increase in the price of spirits since the September quarter of 1980.  This increase was mainly due to the tax increase on pre-mixed spirits in the Rudd Government’s first budget.  He claimed the tax increase was to curb binge drinking but in reality it was just another political stunt, another attempt to be seen to be doing something.  It’s given him a $3bn tax bonus and it’s pushed up the inflation rate.

“He told the voters in the election campaign he was going to bring downward pressure on the cost of living.  Instead, he’s trying to increase the tax on diesel and the cost of vehicle registrations which will both lead to a further increase in the cost of food and other items.  He’s going to increase the luxury car tax and change the Medicare Levy Surcharge which will put up the cost of private medical insurance and lengthen hospital waiting lists.

“In response to the issues that really matter – food and fuel – he’s proposing GroceryWatch and FuelWatch.  GroceryWatch will offer information on prices that is weeks old and won’t cover supermarket specials.  On FuelWatch, independent experts are queuing up to tell the current Senate Inquiry that FuelWatch will lead to more expensive petrol.  Now he’s proposing a flawed emissions trading scheme that will put even more pressure on household budgets.

“His stunts and ineffectual management of the economy are hitting the pockets of every Australian hard.  His election campaign and its promises were a fraud and the evidence for that is coming in thick and fast.”