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House of Assembly - Fifty-Fourth Parliament, Second Session (54-2)
2020-05-13 Daily Xml
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Fuel Price Monitoring

Ms BEDFORD (Florey) (14:36): My question is to the Attorney-General. Why has the government chosen to adopt the fuel price monitoring scheme preferred by some major retailers instead of a 24-hour price guarantee, which the Productivity Commission says is better for consumers and would likely result in lower costs for retailers? Sir, with your leave and that of the house I will explain.

Leave granted.

Ms BEDFORD: The government today released the commissioned report of the SA Productivity Commission into fuel pricing. The report examines two different pricing monitoring models: a model based on 30-minute price reports, which is referred to as Fuel Check; and a 24-hour price guarantee, which is referred to as Fuel Watch. On page 31, in the table summarising the benefits of the two models, the report states that a 24-hour price guarantee, which is the Fuel Watch model, would give 'greater certainty to consumers' and imposes 'arguably lower regulatory, reporting and compliance costs on retailers'.

The Hon. V.A. CHAPMAN (Bragg—Deputy Premier, Attorney-General) (14:37): I thank the member for the question. I thank the member for reading the report. I know it has only been published today, but I think it is a very important topic and it is a very well-received report from the Productivity Commission, now one of several since it has been established.

This was a really important topic, as the member knows, because after the election our government made a commitment to look into the real-time pricing option for fuel. We recognised that it is an important consumer cost, particularly as part of the family budget. It was at a time when the New South Wales government had established a fuel pricing mechanism with an app. There were reports coming out saying, 'Look, this could put prices up.' In fact, the Victorian Labor government, when they read about that option, said, 'Well, we're not going to be doing it at all,' and they haven't since—same with the ACT government.

Over in Western Australia, as the member would note in that report—and it has been a matter she has canvassed here in the parliament already and she is promoting a bill which she would see as some remedy to assist the dilemma for consumers in this area—the Western Australian model, as she described in the quote, is one which is a fuel fixed price. It is for a 24-hour period. In Western Australia, once you have fixed that price you can't change the price for 24 hours.

The Productivity Commission has identified the pros and cons of that in the report, and I urge all members to read it because it identifies the pros and cons of this proposal. One that is identified in Western Australia is that they have a weekly fixed cycle of pricing. It's unique in Australia. I don't know why. I don't understand how fuel pricing works in that sense or how these cycles work. I think somebody out there in the world understands it. Western Australia has a peculiar system where everyone knows it's cheap on Tuesdays to buy fuel and that is what they try to do.

Ms Bedford: Mondays.

The Hon. V.A. CHAPMAN: Mondays, is it? I'm guided by the member for Florey. One day a week is the day to go and get it. The bottom line is that it works there. It has been operating for I think nine or 10 years. It's actually the first in trying to deal with consumer protection in this fuel area, but it works for them. It hasn't been reported as something that is useful elsewhere and no other jurisdictions have taken it up, but, as I say, we have a bit of a mixed bag.

The Northern Territory offered their model, which is a little bit different, for free actually. We didn't end up taking that model, but the Productivity Commission has made that assessment. They have identified one of the disadvantages of having a price fixed for a 24-hour period is that, if a retailer wanted to put the price down, they couldn't even put it down. They can't put—

Ms Bedford: Shouldn't put it up to start with.

The Hon. V.A. CHAPMAN: I'm just making the point that there are pros and cons to these. We thank the Productivity Commission for doing that body of work. I urge members to all have a look at it, if they are of mind to do so, but importantly to put a recommendation as to effectively the Queensland model. That is the one the government, having considered that advice, is proposing to follow. I will be introducing a bill shortly.

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