John MacDonald: Targeted approach to fuel prices misses the mark

There are two ways you could look at the Government's fuel relief package. On one hand, you could say it shouldn't have bothered at all. On the other, you could say it should have bothered, but not the way it's doing it. Either way, it's got it wrong in my book. But, despite what I might think, about 150,000 families with kids on low to middle incomes are going to be getting $50 a week in tax credits to help them deal with increased fuel costs due to the Iran war. But these 150,000 families are families that the Government has no idea whether they actually need this support or not. It's just assuming they do. For example, what about those families that bike everywhere? What about the families who homeschool the kids? They don't need to drive far in the mornings and afternoons, do they? What about families who can't even afford to run a car? Why should they get another $50 a week to pay for fuel that they don't even buy? And then we get to those who aren't getting anything. Nothing in the package announced yesterday for beneficiaries, no relief for retired people, nothing for students. And most importantly, there is no help for the sectors and the industries that rely on diesel to supply us with food and other essentials. Which, if the Government was going to do anything, that's where it should be focused on. The Government should be thinking about the wider consequences of higher fuel prices, however long they continue. And, instead of paying a few bucks to people on the lower pay grades, what it should be doing is providing support or interventions for the likes of food manufacturers, the transport industry, the logistics people, all of those. Because all of those groups are paying higher fuel prices, paying way more for the diesel, but they don't suck them up like your average motorist does. They pass them on. And all it's going to mean is your low and middle income families will be compensated for, apparently, spending more on fuel - but they'll be paying more for the bread and the fruit and the veggies. Which is why I've come to the conclusion that, if this is the best approach the Government can come up with, it shouldn't be bothering at all. LISTEN ABOVESee omnystudio.com/listener for privacy information.