Heavy Vehicles

The SPEAKER: The member for Napier.

Mr GEE (Napier) (14:38): Thank you, sir—

Members interjecting:

Mr GEE: It must be a full moon.

The SPEAKER: The member for Napier will be seated while I call to order the member for Mount Gambier and the member for Schubert.

Mr van Holst Pellekaan interjecting:

The SPEAKER: The member for Stuart is warned for the second and final time. The member for Napier.

Mr GEE: Thank you for your protection, sir. My question is to the Minister for Transport and Infrastructure. Can the minister update the house on the progress of the heavy vehicle network charging trials in South Australia?

The Hon. S.C. MULLIGHAN (Lee—Minister for Transport and Infrastructure, Minister Assisting the Minister for Planning, Minister Assisting the Minister for Housing and Urban Development) (14:38): I thank the member for Napier for his question and for his keen interest in transport matters in South Australia. As members would be aware, the government is progressing heavy vehicle network charging trials directly with representatives of the heavy vehicle industry. The current system of state and federally based registration fees, charges and fuel excises for vehicles is not working.

Despite paying a significant amount of money to both state and federal governments, industry is often unable to see the direct benefits to the roads and to their operations. Heavy vehicle charges and taxation should have a more direct link to improvements and upkeep of the roads on which they operate. Currently, there is no direct link between the entire revenue pool and the road funding that is provided, or indeed required, across Australia.

Revenue paid by industry through the road user charge and in fuel excise is collected by the commonwealth into general revenue. Unlike registration charges paid to the state government which are paid into the Highways Fund and hypothecated into road funding, this arrangement is not replicated federally. As flagged by the Premier in November of last year and again in his speech to the National Press Club in July of this year, we need a fairer, more equitable and, particularly, more transparent way of raising revenue for investment in roads than the current regime provides. Over the last six months, the government has been meeting with industry to discuss how the trials would work, where potential trials could take place in the state and the benefits which the trials would provide to industry.

The collaboration between the government and industry has been very productive. This collaboration has involved a number of key industry groups, such as the South Australian Road Transport Association, the South Australian Livestock and Rural Transporters Association and key industry operators. However, we know that the commonwealth is also a key player in the heavy vehicle industry and their involvement in these trials will be crucial to ensure their success.

I had the pleasure of meeting with the new commonwealth Minister for Territories, Local Government and Major Projects, the Hon. Paul Fletcher, last week in Canberra. The discussions with Mr Fletcher were very positive and built on the infrastructure outcomes that both governments have been able to achieve for South Australia since the last state election, which has seen important projects such as the Torrens to Torrens project and the Northern Connector project, amongst others, funded. As part of these discussions I had with Mr Fletcher, the South Australian and federal governments have agreed to establish a working group to assist in the progress of these network charging trials in this state.

The Department of Planning, Transport and Infrastructure and the commonwealth Department of Infrastructure and Regional Development will work closely together as the state government continues its efforts with industry to progress these trials. The commonwealth recognises the potential of this significant transport reform and the leadership of this state with network charging. The government's view is that these trials will inform and potentially accelerate state and national road reform.

While some, including those opposite, have said that they wanted an extra tax in the form of a toll on the heavy vehicle industry, driving up costs and hitting South Australian families with increases to the price of goods and services, we know that there is a much better way, a much fairer and more transparent way, to tax the heavy vehicle industry. The government is finalising trial options with industry with a view to beginning such trials early next year. I look forward to updating the house as this reform initiative progresses.

The SPEAKER: The member for Flinders, uncharacteristically, is called to order. The member for Taylor.