Fed: Xenophon, Fielding say they can't support FuelWatch plan

AAP General News (Australia)
08-13-2008
Fed: Xenophon, Fielding say they can't support FuelWatch plan

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CANBERRA, Aug 13 AAP - A second key senator has voiced concern about the Rudd government's
legislation for its planned FuelWatch scheme.

The legislation appears doomed, with Family First senator Steve Fielding joining independent
Nick Xenophon in saying they won't support the scheme as it stands now.

The national price watch scheme, based on a model operating in Western Australia, is
scheduled to begin operation on December 15.

The government needs the support of the five Greens senators, and senators Fielding
and Xenophon to get its legislation through the upper house.

Senator Xenophon said FuelWatch would hurt independent fuel retailers and stifle competition.

"I can't support the government's scheme, it just doesn't make sense," he told ABC Radio today.

"There are unintended consequences, it could kill independent operators in terms of
wiping them out, (and) it will consolidate the big (oil) players.

Senator Fielding said he would not support the legislation until his "serious concerns"

were addressed by the government.

"We're still wanting to understand how it won't push petrol prices ... up and we also
want to know how FuelWatch won't squeeze out independents.

"Until we are satisfied with those two questions Family First can't support Fuelwatch."

Senator Xenophon said the legislation would not help consumers.

"It became abundantly clear that this isn't going to work at all for consumers," he
told the Nine Network this morning.

"The big issue here is you need to have competition amongst the big four oil companies,
that's where the problem is.

"The government's scheme just won't work and I wasn't prepared to risk putting up fuel
prices on the basis of overwhelming evidence."

Comment was being sought from the government.

AAP srj/sld/srp/nf/bwl

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