Press Release

The Pastoralists and Graziers Association (PGA) says Labor’s proposed cuts to the diesel fuel rebate is another Greens’ led policy that will cripple modern agriculture and force farmers to return to the days of the horse and plough.

PGA President Rob Gillam said any move to cut the rebate would unfairly burden those living in rural and remote Western Australia and result in a significant drop in productivity from the agricultural sector.

“The Fuel Tax Credit is not, as the Greens love stating, a subsidy which encourages the use of polluting fossil fuels,” Mr Gillam said.  “It removes fuel excise as an impost on a critical business input for farmers.  Fuel is one of the major input cost in farming and the prices continue to increase.”

“Fuel, especially diesel and lubricants account for around 9% of total farm costs and the price of fuel also determines other input costs like fertilizer and freight, driving total costs of up to 25%.”

‘If you remove the Fuel Tax Credit you remove the competitiveness of West Australian farmers and increase the price of food for consumers.”

"This is simply a cash grab by the Gillard Government to try and achieve a budget surplus and to appease the Greens who are opposed to any aspect of modern day farming, from live exports to GM crops and wish us to return to the days of the horse and plough.”