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Transport is regarded by many commentators and policy makers as likely to become the most pressing energy-related issue at international, national and state levels.
The current very heavy dependence of transport systems on oil, rising world demand for oil, the imminent peak in oil production and subsequent decline of oil availability make this a critical problem for Australia.
When oil consumption begins to exceed production by even a small amount, the price of oil could soar to well over US$100 a barrel, greatly increasing the cost of transport fuels, the petrochemicals used to make thousand of plastics products, fertilisers and pesticides for food production. With in a year or so this would create a global recession. The impact on the well being of Australians, particularly with outer suburban lifestyles, hinged on two car families and constant car trips to work, school and supermarkets, will be disastrous.
People need to realise that oil production is not just about transport and the cost of getting to work; it is also about manufacturing, farming, and the availability and cost of every day products and food. Oil decline will have a huge impact on world food production and will have a devastating effect on developing countries in particular.
The climate change impact of current transport energy use is a further issue that is behind the growing realisation worldwide of the need to develop new transport systems and fuels.
In Australia transport accounted for 13% of Australia's Greenhouse gas emissions. Our transport emissions have increased by 23% since 1990, but Commonwealth agencies have no policies to reduce further increases.
Urban planning and Transport funding continues to favour road over rail and cars over public transport, walking and cycling.
For example, across all levels of Government in Australia from 1998-2204 roads received $47.6 billion – almost 8 times more funding than rail, whilst funding of infrastructure for bikeways and pedestrian safety, amenity and access was minuscule.
The Government to invest in an energy security policy, with both demand and supply side measures, including a carbon price.
Shift passengers from cars to public transport
Private cars account for 93% of urban passenger transport. Rail’s share of the passenger task has dropped dramatically, fostered by decades of government policy favouring roads. The federal government claims that public transport is a state responsibility but the Whitlam, Fraser, Hawke and Keating governments all provided public transport funds. You cannot have a national approach to transport, as AusLink claims, and ignore public transport. Our cities are congested with passenger cars and trucks, noise and pollution. Sitting back, funding more freeways, does not work, is not sustainable, uses up more oil and most definitely is not nation building
Shift fuels from petrol and diesel to clean and renewable
Apart from LPG which makes up 6.7% of the road transport fuel sales, little progress has been made in shifting to cleaner, alternative fuels. In May 2004 the Government announced a tax on alternative fuels at the same rate as petrol that almost wiped out this fledgling industry. At the time the Democrats managed to push the Government to halve the excise and delay its introduction until 2011. In June 2006 the Coalition and Labor joined together in the Senate and passed legislation that cut excise on diesel for many uses, removing the slender price advantage that biofuels previously had. As a result, investment in biofuel production has stalled and three of the four major petroleum companies have been slow in carrying these renewable fuels in their service stations. The petroleum companies have agreed to a voluntary biofuel target, but to date have failed to meet their own target.
Shift cars to greater efficiency
The Federal Government has provided over $4 billion in assistance to the automotive industry over the last five years, most recently $52.5 million in this budget to prop up Ford’s new pickup trucks could have been used to leverage fuel efficiency, or provide incentives to make hybrid vehicles in this country.
Shift freight from road to rail
Currently 85% of freight on the eastern seaboard is transported via our road networks. One Melbourne- Sydney freight train replaces 150 semi-trailers and rail uses only one third of the fuel per tonne hauled. For this reason the Democrats negotiated a 100% diesel excise cut for rail but unfortunately lack of investment in modern infrastructure has made it hard for rail to be cost competitive as access charges for rail are 30% of operating costs compared with 5% for road. The road user charge promised in the Governments 2004 Energy White Paper, has recently been implemented but, under pressure from the trucking sector, has been offset by the new fuel tax excise rebate introduced on July 1 2006.
Shift travel to video and teleconferencing
Some air and car travel could be avoided if we increased our use of video and teleconferencing for meetings. The Government needs to increase its effort to roll out fast speed affordable broadband and provide support to reduce the cost of setting up video conference facilities.
Government heading in the Wrong Direction
The Prime Minister’s announcement in June that Australia will become an energy super power and invest heavily in oil exploration yet failed to make any announcement about alternative fuel and reducing our reliance on oil, sends the wrong signal to consumers, auto manufacturers and the fuel industry. Even George Bush has admitted that "America is addicted to oil" and that "Keeping America competitive requires affordable energy". "America is investing in research into hybrid vehicles and pollution free cars, and more on alternative fuels.
Democrats Action Agenda
| 1. |
Develop car fuel efficiency standard to ensure that by 2015 average fuel consumption of the car fleet including most 4WDs be 5 litres/100 km and for the SUV and light truck fleet to be 6.5 litres/100 km. giving an overall 50% increase in fuel efficiency. |
| 2. |
Keep excise off alternative fuels until they have reached critical mass and can compete in the market. |
| 3. |
Phase in a mandate on 10% ethanol fuels and lift the 10% cap to accommodate new vehicles coming to Australia that can run on 85% ethanol. |
| 4. |
Invest in compressed natural gas refueling stations. |
| 5. |
Provide incentives to motorists and auto manufacturers to take-up fuel efficient cars. |
| 6. |
Switch government fleets to alternative fuels and/or fuel efficient cars such as petrol/electric hybrids. |
| 7. |
Embody the costs of oil depletion into the price of diesel, petrol and aviation fuel and utilise other green taxes designed to decouple the growth in oil consumption from the growth of GDP. Use the environmental taxes to rebuild and enhance rail infrastructure into all urban areas. |
| 8. |
Provide a single pool of Commonwealth and State funds for all transport infrastructure, allocated on the basis of clear criteria that includes impact on greenhouse gas emissions and maximises environmental, social and economic gain. |
| 9. |
Establish a rail specific fund for modernising rail infrastructure. |
| 10. |
Promote and fund the uptake of telecommuting, eco-driving, car-pooling and Travel Smart programs in all urban areas. |
| 11. |
Change current land use planning practice to halt urban sprawl and provide public transport services in newly established residential and industrial areas. |
| 12. |
Change the constitutions of road planning and building agencies to make it their responsibility to reduce the demand for road space and travel by car. |
| 13. |
Build urban bikeway networks for bicycles and electric bicycles and provide secure bicycle parking at all modal interchanges and railway stations. Encourage the use of electric bicycles with solar electric and/or over night battery charging. |
| 14. |
Improve public transport frequency, amenity, safety, reliability and accessibility. |
| 15. |
Remove GST on public transport. |
| 16. |
Reform FBT to encourage public transport use and car pooling. |
| 17. |
Introduce car parking and congestion charges in inner urban areas. |
| 18. |
Improve broadband access and teleconference facilities to reduce the need to travel for meetings. |
Latest News
Watch FOUR CORNERS special on peak oil
This report explains why oil prices have escalated and asks how long the world has left to prepare for a day when there is not enough oil to go around.
abc.net.au/4corners/special_eds/20060710/
Read Senator Allison's speeches on:
The negative impact the Fuel Tax Bill 2006 will have on Biofuels
Peak oil given to the to Offshore Petroleum Bill 2005
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