The government has been accused of “living in fantasy land” for telling Australians to “continue” with any long weekend travel plans amidst the ongoing fuel crisis.
Australian petrol prices remain stubbornly high – more than 250c per litre in capital cities – as the tourism industry is down on bookings and expecting Covid-era returns over the Easter weekend.
Environment and Water Minister Murray Watt told Sky News’ Sunday Agenda the government wanted to see families “continue with their holiday plans”.
“Everyone’s going to be in a different situation there,” he said.
“But as a blanket rule, we don’t want to see people deciding to cancel their holidays because of concerns that they may not be able to get fuel.
“The tourism industry in Australia relies on the Easter period as one of its peak periods and if people have already got plans then we’d encourage them to continue with that to the extent that their household budget allows them to do so.”
Liberal Senator Michaelia Cash told Sky News Australia the answer had “really surprised” her.
“(Mr) Watt was living in fantasy land by saying to Australians: ‘the government says take a holiday’,” she said.
“They can’t afford to, and even if they could, they don’t know if the fuel is going to be there.”
She said families had been broken down by persistent financial pressures even before the US-Israel, Iran war broke out at the end of February.
“Mum and dad Australians … for four years have been smashed by a cost-of-living crisis, (have) recently had an interest rate rise, (their) energy bills are out of control, (and) are now literally paying in excess of $3 a litre at the bowser and don’t know if their servo is going to be open.
“You tell me, how do they travel at Easter?”
Ms Cash said in her own state of Western Australia, that a classic Easter weekend getaway was unlikely for many.
“What do Western Australians do at Easter? They take their kids off and down south to Bunbury, to Busselton, to Esperance, down to Albany,” she said.
“They’re gone; caravan parks will tell you that people have been phoning them now to cancel their holidays.
“People are worried about the price … but more than that, they are now worried that they’ll get halfway to their destination, they’ll need to top up and despite the government saying supply is not an issue, they’ll rock into a servo that says we’re closed for business, as we are now seeing around Australia.”
Data from the NSW Tourism Association suggested about 92 per cent of regional tourism operators were experiencing a slump in bookings ahead of the period – Friday, April 3 to Monday, April 6.
Members of the organisation largely blamed the declined numbers on fuel and travel costs, cost of living, and broader economic uncertainty.
Other small businesses told The Australian the fuel crisis was like a “Covid flashback”.
The Coalition has offered to work with the government to cut the fuel excise which comprises 52.6c per litre of fuel costs.
The government will assess its options at a National Cabinet meeting with state and territory leaders on Monday.
PM Anthony Albanese also announced his government’s intention to underwrite and deliver “shiploads” of fuel to Australia.
Amendments to the Export Finance and Insurance Corporation Act will formalise the Commonwealth’s powers to underwrite additional cargoes.
“The deal making expertise of Export Finance Australia will allow them to enter contracts of insurance or indemnity, give guarantees, make loans, or enter arrangements needed to help secure fuel supply from international markets,” information from the Prime Minister’s office read.
“The Fuel Security powers help to address (price rises and shortages) by giving suppliers confidence to secure additional and discretionary cargoes – which will be used to service uncontracted demand, including regional and independent fuel suppliers.”
The government and state leaders will meet at a National Cabinet on Monday to discuss a coordinated response to the ongoing price rises.