Motoring DIRECTIONS - Australian Automobile Association

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Motoring DIRECTIONS - Australian Automobile Association

MOTORING DIRECTIONS6 MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 3➥


MOTORING DIRECTIONSWhen we asked motorists in our national survey whatconcerns they had about airbags, a very large two-thirdshad spontaneous misgivings. The three main concernswere that:• They can cause injury, particularly to children.• They go off too easily - otherwise known by ANOPpsychologists as the fear of ‘premature inflation’.• The benefits of airbags have not been proven.The poor image of airbags is primarily the result ofmarketing negligence. People need to be told how manylives have been saved and of the injuries prevented bytheir use, otherwise in the future we will find thatcommonsense has been defeated by ignorance and thelove of a gory story.Supermarkets selling petrolSelling petrol at supermarkets is another area inwhich the benefits of a new concept will need to be sold.When motorists were asked whether they were aware ofsupermarkets selling petrol only just over half knew ofthis development. This is a reasonable level of awarenessconsidering the state of play.We then asked whether this was a good idea or not,and the negative response was high, with 5:4 against.Those one-third of motorists who thought selling petrolin supermarkets was a good idea recognised some of thebenefits of deregulation, that is:• Cheaper petrol.• Convenience.• It encourages competition.Those 45 per cent against were mainly concerned about:• Little service stations losing business and closing.• Health and safety.• The future domination of yet another industry by thesupermarket conglomerates.Levels of awarenessThe type of response evoked by this question is closelytied to individual levels of awareness about the issue. Ofthe 56 per cent of motorists who were aware of petrolsales by supermarkets, 46 per cent thought it was a goodidea. Conversely, of the 44 per cent unaware only 25 percent thought it was a good idea.There is little doubt that a significant part of thenegative response is the result of an understandable lackof consumer information and some existing prejudices.Those citing health and safety concerns often mentionedthat “food and petrol don't mix”. Others are concernedabout car park congestion and supermarkets being illequippedto sell petrol.These are responses indicative of people unable toenvisage such a service or its benefits because they lackthe fundamental knowledge and experience to do so.One assumes that the ‘supermarketers’ will be moreprofessional and canny than the ‘air baggers’ in theirpromotion of this new concept as it is introduced morewidely.Petrol pricing distrustWhile only a small number of motorists spontaneouslyrecognised that the sale of petrol in supermarkets wouldproduce a cheaper product, this will be the mainattraction of the concept as petrol prices are one ofmotorists' hotspots. We also discussed the cost of petrol inour focus groups with motorists. On a day-to-day levelthere is little consciousness of the fuel excise because, aswith all indirect taxes, the fuel excise remains largely outof-sightand out-of-mind.In fact, motorists are far more likely to get hot underthe collar about the daily fluctuations of petrol pricesthan any hidden tax. Our group discussions bristled withconspiracy theories as participants speculated as to thecause of these fluctuations, many putting it down to aphone call from the oil companies, while otherssuggested it coincided with pay day and school holidays.Cars indispensableAt the end of the day, city motorists are resigned tothe fact that they need their cars and, within reason, willpay to keep them on the road. However, their lack ofprotest is contingent on their continuingunconsciousness of petrol taxes. If the amount of federalgovernment petrol tax became more transparent andmotorists realised how little is spent on roads, theirbenign acceptance could turn to resentment and politicalantagonism.Fuel efficiency is both a cost and environmental issue.We investigated this area in some detail in ourpreliminary group discussions. When we asked themwhether they were more concerned about fuel efficiencybecause of the implications for the environment orbecause of the cost, there was little doubt that money wasthe key driver.Motorists do not have many authoritative sources ofinformation about fuel efficiency. Many judge itthemselves by monitoring their own petrol consumptionor rely on friends or relatives or just don't think about it.The main concrete source of information is motoringclubs, who are relied on by less than two in 10 motorists.Given this, it is not surprising that the idea of labellinga new car's level of fuel efficiency is well received. Twothirdsof motorists thought labelling would be helpful,with very few people being unsure about this new idea.This level of support contrasts strongly with the reaction➥MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 37


MOTORING DIRECTIONS8 MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 3to airbags and shows how a simple self-explanatory ideashould achieve the desired outcome of clear majoritysupport.The environmental impactOne issue which motorists have been struggling toreconcile to themselves is their genuine concern aboutthe effect of cars on the environment and theircontinuing need to use one. The bottom line is that theywant to make what goes into the car environmentallyfriendly and what comes out of it is less polluting, butthey don't want to change their driving behaviour.When we asked drivers what features of a car help toreduce its environmental impact there has been littlechange from the previous year, with a similar percentageof motorists suggesting:• Type of fuel.• Exhaust, emissions control.• Fuel efficiency.The only change has been an increase among thosespontaneously mentioning that a well maintained car willhelp reduce its environmental impact. This is the firstindication that campaigns encouraging good carmaintenance are beginning to take effect and thatmotorists feel a well-tuned and serviced car is a solutionto their dilemma.Further evidence of this shift in attitude is revealedwhen we asked motorists how likely they are to dosomething personally to reduce the effect of their car onthe environment. Since 1995 there has been a substantialshift upwards among those likely to do something toreduce the environmental impact of their car, with almosta quarter of all motorists now suggesting that a wellmaintained car is the answer.Important findingsThese are important findings because they show thatyour campaigns have fallen on receptive ground and, likehousehold recyclers, motorists feel they have found anoption that is apparently realistic and effective, but moreto the point, provides convenient guilt relief and absolvesthe motorists of any need to alter how much they drivetheir cars.With fewer than one in 10 motorists prepared toincrease their public transport use in the future it isunrealistic to believe that campaigns aimed at trying tostop people driving for environmental reasons can havemuch currency. If motorists are to make a contributionthey need psychologically acceptable solutions such asthose offered by the car maintenance campaigns.While on the subject of which programs andcampaigns are successful or not, ANOP asked motoristshow they felt about the state of Australian roads and whothey thought was responsible for their current condition.➥


MOTORING DIRECTIONSThere is a similar story for the ‘blackspots’ programpromised by the federal Coalition at the last election.Despite three-quarters of motorists being nominally awareof the program or its implementation, only 13 per centknew that it was a federal government initiative, whichwas well below those 30 per cent who nominated the stategovernment and the 19 per cent who opted for localgovernment.We can see that people are aware of changes in thecondition of roads because they see and drive on them.But they are not sure and they are often wrong about whothey should congratulate. It’s a pity that John Sharp madea sacrifice of himself before he had a chance to claim thecredit. The federal government should take note of theseresults and start getting a political return for the capitalinvestment it is making.Car safety and crash tests are seen as anincreasingly important service provided by themotoring clubsThere is a perception that major highways are ‘gettingbetter’, arterial roads are also improving slightly, whilemore people are likely to say local roads have stayedpretty much the same.The real issue, however, lies with who gets the creditfor improved roads. When asked which level ofgovernment is responsible for making roads better, thestate government beats the federal government, as itshould, in terms of arterial roads, but also gets slightlymore credit for highways.Motoring clubs’ activitiesThis time, as in previous years, we asked motorists torate the importance of those activities undertaken by themotoring clubs that are beyond the traditional roadsideservice. Motorists gave very high ratings of importance toalmost all the six activities listed. This is a clearendorsement of the motoring clubs’ role as the motorist'sfriend and representative.Important with an election year almost upon us is thecall for motoring organisations to put pressure ongovernments and petrol companies to keep the price ofpetrol down or stable. Clearly, motorists would welcomean ally, someone to lobby for them on this confusing andsleeping political issue. Similarly, lower down the listthere is also strong support for clubs to obtain motorists'views and put them to government.In addition to the role of lobbyist, motorists perceivethe motoring clubs as watchdog and problem solver. Theystrongly support car safety and crash tests and want theclubs to work out ways of improving roads.This faith in the expanding abilities of motoring clubshas been growing over the past two years and offers bothnew opportunities and responsibilities for theseorganisations. These results show that the strength of thebrand of the motoring clubs around Australia overcomesthe bad press about organisational issues which dominatemedia coverage in some states.Perhaps the greatest chance for clubs to representtheir members lies just around the corner in the form ofthe looming and now inevitable tax debate. While weknow motoring costs are important to motorists, untilnow there has been little full-scale public discussionabout those hidden indirect motoring taxes and charges.I believe that community opinion has softenedtowards the introduction of a modest GST and, withskilful communication, a federal government could➥MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 39


MOTORING DIRECTIONSsucceed in theory in convincing the electorate. However,with the Prime Minister apparently committed to raisingcommunity expectations about ‘mega’ tax cuts and‘mega’ tax reform, the prospect of a modest GST isreceding by the day. And whether the currentgovernment has the required communication skills to sella ‘mega’ GST remains very much to be seen.ConclusionsThe results suggest that the commitment ofAustralians to their cars is a force to be reckoned with.Motorists are willing targets for information about issuessuch as safety, fuel industry deregulation and viableenvironmental solutions, but our research shows youmust guide the communication, and that it is easy formisconceptions and misgivings to undermine potentiallygood ideas and innovations.In many ways it is governments that remain in theleast enviable position, forever damned if they do anddamned if they don't. Because of this, motoring clubs arein a position of strength because they have a respectedbrand name and product, and thus the capacity to drivean agenda.There is no doubt that tax, along with race, willdominate the next election, whether a double dissolutionor not. It is in the Prime Minister's interest to ensure theGST is not ‘mega’, but rather to take the sword to thewhole tax mix. In this context there is both theopportunity and the obligation for the motoring clubs topush a genuine reform agenda on the issue of motoringtaxation.■News Brief — World-first Car Safety ProjectThe Federal Government, Holden, MonashUniversity, Federal Office of Road Safety (FORS),Triple A and Autoliv Australia are backing a $1.4billion three-year project to design the world’s safestcar.The project aims to maximise the protection of caroccupants during a side impact collision. Harmreduction theory will be applied to side impactprotection in car design for the first time with thelatest computer technology being used to design amodel and directly measure the level of injury to caroccupants in relation to the vehicle’s design.If successful, the project will revolutionise thevehicle design industry by providing cost-effectiveoccupant protection countermeasures based on acomputational approach which so far has not beenimplemented anywhere else in the world.The concept of harm reduction was initiallyproposed in the USA and more recently expandedand refined by Monash University AccidentResearch Centre (MUARC) for FORS. The mainadvantage is that it takes account of both thefrequency and cost of injury, and ensures thatoutcomes offer optimal benefits to society.Although such an approach has not been attemptedbefore, recent Australian developments point to itswider use as a design criteria for passenger cars.While there is a degree of risk associated with itsapplication to side impact intrusion, successfulimplementation would represent a uniquedevelopment for the automotive industry of bothnational and international significance.To date, two technically different side impactprotection standards have been developed in theUSA and Europe, and there is considerableagreement that neither is optimum for reducingpotentially life-threatening injuries to vehicleoccupants. Different vehicle and road conditions inAustralia call for a different approach to optimisingoccupant protection in such crashes, and thisproblem will also be addressed by the project.The contributorsIn addition to funding of $360,000 by theGovernment, Holden will contribute $150,000 plus$560,000 in kind, FORS $160,000 and a further$150,000 in kind, while the Triple A is providing$60,000. Autoliv, which manufactures seat belts, airbags and other car safety equipment, is alsoparticipating in the project.The work will be supervised by Professor BrianFildes from MUARC, Keith Sayer, Chief Engineer atFORS, and Laurie Sparke, Holden’s Manager ofAdvanced Engineering.10 MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 3


MOTORING DIRECTIONSIn this edited version of an address to the ‘Tread Lightly! on the World’ conference held in Coffs Harbour, NSW,last April, motoring journalist Brian Woodward asks -Will Motor Vehicles Be theCigarettes of Next Century?The motor vehicle (as well as other products of theindustrial revolution) has dramatically raised thequality of life. It has enabled society to becomerich enough to afford better medicine, educationand social welfare.It has created sufficient free wealth that we can affordto be here talking about the damage it has caused. Andwhat a lot of damage it has caused.Mind you, it is only now beginning to cause realdamage. While the number of vehicles has risenspectacularly as the world’s population and wealthincrease, vehicle emission levels have droppeddramatically.Using Australia as an example of a well-developedeconomy, we have gone from 10 people per vehicle in themid-1930s to 1.7 today. This is likely to become even moreextraordinary because newer vehicles are more reliableand last longer.Already, almost half ofAustralia’s registered carsare more than 10 years old.Old vehicles last longer andnew ones just add to thenumbers. A car forcommuting and a fourwheel-drive(4WD) for funfor every Australian.Effect of populationThe effect of population on vehicle ownership hasterrifying potential. At the beginning of the century therewere 1.8 billion humans. Today that number exceeds 5.4billion. It doesn’t matter if you believe in the bibleliterally or evolution, these population figures mean thatmore than half of the people ever born are alive rightnow.In the next seven days 2,560,000 new children will beborn on earth. In another 20 years at least one million ofthem will have survived and be rich enough to becomefirst-time vehicle owners.Reliable figures are hard to come by, but already theworld has more than half a billion vehicles. If the rest ofthe world had Australia’s love affair with the motorvehicle that figure would be more than three billion.Luckily, we will have to wait a while for the billionth toroll into service some time before this week’s newbornchildren wander into a showroom in 2017 with cash intheir pockets, stars in they eyes and a dream in theirhearts.Four-wheel-drive vehicles are the type most fearedbecause of their capacity to destroy the environment.Sales of 4WDs have experienced a growth that almostdefies logic. In Australia just 2000 were sold in 1973. By1980 this had reached almost 32,000.Big range of models‘ In the next seven days 2,560,000new children will be born on earth.In another 20 years at least onemillion of them will have survived andbe rich enough to become first-timevehicle owners.’In 1996 Australians bought 50,269 new all-terrainvehicles. Amazingly, you can choose from more than 108makes and different models of new 4WDs aimed at theprivate buyer. Add 4WD commercial vehicles and thechoice swells dramatically.Those folk buyingvehicles in 2017 will beinspired by advertising andthe media. What will theyknow? What will the mediahave told them? What willthey feel? What will they bedoing with the vehicles theybuy? Will motor vehicleshave become the cigarettes of the 21st century? Thinkabout this for a moment: whoever owns the languageowns its facts.Less than a lifetime ago feminism grabbed thelanguage and forced changes for the better. Gender biashasn’t totally vanished but we’re no longeruncomfortable with the word ‘chairperson’. Journalistsnow think carefully before using ‘he’ when they mean‘them’ or could mean ‘she’.There are many other examples of how the wellorchestratedfeminist attack on unfair language hassucceeded in diminishing bias. Real progress towardsequality was made by first changing the way we speak.This changes the way we think.The language of the motor vehicle and its image areowned by those who create motor vehicle advertising.➥MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 311


MOTORING DIRECTIONSSales of four-wheel-drive vehicles have experienced a growth that almost defieslogic.The cigarette industry has lost control of its visual andverbal language. The anti-smoking lobby has been sosuccessful that the tobacco industry is fighting a highlycreative rear-guard action.Cigarettes and motor vehicles are both legal. Pleasedon’t forget that.The advertising messageSo, to the 4WD and its language. If you believe theadvertising, they are today’s heroes. In simple terms, a4WD enables man - and it usually is man - to conquernature. It is a human form of behaviour as old asmankind and I won’t be drawn into an argument whetherit is right or wrong. It just is.Subduing the wilderness and exploiting it is whatcaused people to set out and settle both Americas, Africaand Australia. Bigger and better ships and machinesmeans bigger and better dominance. Bigger toys foradventurous boys.Even in these most civilised, aware and caring times,where people ride bicycles to save the planet, the need toconquer mother earth remains a basic urge.When the ecological damage caused by badly drivenrecreation vehicles started alarm bells ringing, motoringjournalists began discussing a change of publishingattitude. Some of the specialist 4WD magazines wereamong the first to changefrom the old ‘bush-bash’ days.Today, the leadingmagazines present the 4WD asa vehicle to wisely explore andenjoy Australia. Stories aboutnew 4WDs, interesting placesand driving techniques arealmost entirely covered in thespirit of Tread Lightly! as theirbeacon.But there is a curiousconflict when it comes to themotor industry. The industryseems able to select whereand how it will advertise greenor mean.It is time for those peoplevitally interested in the motorvehicle and the environmentto take back the language.There are several things thatcan be done.First, most eco-damagecaused by 4WDs today comesfrom driver ignorance or lackof skill, not malice. This iswhy so many 4WD clubs havebecome highly proficient at driver training.Secondly, there is a need to establish contact with themedia, senior representatives of 4WD importers and theiradvertising agencies. Every example of journalistic copy,magazine, brochure or advertisement which shows a 4WDbeing used inappropriately should result in somebodycontacting the perpetrator.Recently, the tobacco industry in the USA agreed topay a landmark $US380 billion in compensation over thenext 25 years for the health problems caused by cigarettesmoking in that country. Unless the 4WD makers heedthe developed world’s growing passion for the unspoiledenvironment they could easily become the tobaccoindustry of the 21st century, forced to pay compensationfor the damage done by their products.Contact details for information about theTread Lightly! program -Telephone: (07) 3379 9064Fax: (07) 3379 1679Email: scudamor@eis.net.auAddress: PO Box 409,CORINDA,QLD 4075■12 MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 3


MOTORING DIRECTIONSWith reform of the taxation system currently the subject of considerable debate in the community, the Triple A has prepared thefollowing discussion paper on -Tax Reform and MotoringAkey component of tax reform from theviewpoint of motoring organisations is toprovide the opportunity to clearly distinguishbetween taxes, which are raised for generalrevenue, and charges, which are a fee for roadprovision and use.Separating taxes and charges is necessary to ensurethat motorists are not unfairly singled out as a revenuesource. It is also important to make taxing and chargingmore transparent to consumers and taxpayers.Motoring taxation is applied at three levels:On vehicle purchase. Wholesale sales tax on new nonluxuryvehicles is 22 per cent with a luxury sales tax appliedat 45 per cent on the excess of the wholesale price above theluxury threshold. Stamp duty represents a tax on top of theother purchase-related taxes.Features of the current WST system that warrant examinationare the absence of any tax advantage to purchase cleaner orsafer vehicles and reduce the age of the car fleet, and thecontinued taxation of airbags at the new car rate when mostsafety items are tax exempt.On vehicle ownership. Registration fees vary among thestates/territories. Wholesale sales tax is included when abusiness purchases a vehicle, while fringe benefits tax isimposed on employer-provided cars at a rate less than incometax on equivalent taxable value.On vehicle use. Fuel excise of between 43 and 45 cents perlitre (cpl) on petrol and diesel is equivalent to an ad valoremtax of 150 per cent, and is indexed to the CPI, whereas liquidpetroleum gas and natural gas are tax exempt.The current system does not distinguish between the tax andcharge components of fuel excise, and there is a lack oftransparency.Motoring taxes constitute a substantial share oftaxation revenue, accounting for 23 per cent of the $67billion of federal, state and territory indirect tax revenuein 1995-96. In the same financial year, the petroleumproducts excise made up 26 per cent of theCommonwealth’s $29 billion of revenue from indirecttaxes, while the wholesale sales tax on motor vehiclesrepresented 23 per cent of the $13 billion WST revenue.The Federal Government raises more than $7 billionin fuel excise from road users but spends only about $800million on national roads with another $350 millionallocated to the states and territories, and a further $350million to local government. An additional 8.1 cpl inexcise was introduced to replace the previous state andterritory business fuel franchise fees, and theadministration cost of this arrangement is quite high.(See Revenue from road users 1995–96, page 15)The imposition of a carbon tax has been suggestedfrom time to time to as an environmental measure, butthis is a blunt instrument that would have little impact oncar use or CO 2 emissions. A comprehensive strategy toreduce the environmental impact of vehicles is needed,encompassing:• New vehicle technologies and fuels.• Fuel economy targets.• Improved transport infrastructure and choice, drivereducation and information fiscal incentives.• Carbon sequestration.In considering taxation reform several broad issues needto be resolved:• Should we focus on improvements at the margin ofthe current tax system or major reform?• Should a road user charge be based on an ‘ideal’marginal cost pricing scheme or on raising sufficientrevenue to cover funding needs?• How should vertical fiscal imbalance be resolved?• Are road users ‘paying their way’?• What is the appropriate balance between fixedcharges and usage charges?The major proposed taxation reform is theintroduction of a GST or VAT. For consistency under aGST or VAT, fuel and road user charges should be subjectto the standard tax rate.Whether or not motoring organisations wouldsupport such a tax would depend on the extent to whichmotoring taxes are reformed and a clear distinctionbeing made between motoring taxes and charges for roaduse.Other reforms to motoring taxes proposed bymotoring organisations are that:• All fuels should be taxed equally.MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 3➥13


MOTORING DIRECTIONSAirbags continue to be taxed at the new car rate when most safety items aretax exempt• Indexation of fuel excise should be abolished.• Airbags should be exempt from sales tax.• Stamp duties should be uniform across all states andterritories or abolished under a GST/VAT.Motoring chargesThe introduction of an explicit road-user charge is anessential part of the argument put forward by motoringorganisations and other consumer groups that fuelshould be taxed no more highly than other goods andservices under a GST/VAT-style system.This was a key recommendation of the Triple A’ssubmission to the recent federal road funding inquiry. Inthat submission, it was argued that there should be adirect customer-provider relationship between road-userson the one hand and corporatised road entities on theother.This would bring roads into line with otherinfrastructure providers such as telecommunications,airports, railways, electricity, gas and so forth. Indeed,roads stand out as being about the only infrastructureservice that is still subject to direct management bygovernment and funding by tax-payers as distinct fromusers.Roads should be funded by road users and otherbeneficiaries. Road users should pay an explicit road usercharge which is paid to a road corporation and not totreasury. This would enable road users to be chargeddirectly for both the fixed and variable costs of roadprovision and use. It makes no more sense to pay for14 MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 3roads via a tax to treasury than itdoes to pay for telephone calls, gasor electricity in that way.Road user charges shouldreflect the cost of road use and,initially at least, generate enoughrevenue to fund the federal andstate/territory road programs anda portion of the local governmentroad program. (Much of the localgovernment road programconstitutes the provision of accessto property, rather than themovement of vehicles, andtherefore is properly a chargeagainst property via rates.)The revenue should be raisedon the basis of cost causality andshould be recovered from vehicleclasses as both fixed and userelatedor variable charges.Fixed charges are primarilyregistration charges, which are currently levied by allstates/territories, and include a notional 18 cpl usercharge for heavy vehicles. These should be used to coverthe fixed costs of infrastructure provision and wouldproperly vary with vehicle class.Variable charges would initially be fuel-based sincethis is by far the most convenient way to collect them atpresent. However, in the future there is every possibilitythat they will be able to be collected electronically andtherefore relate more closely to actual cost causality.These should be used to meet the variable costs ofinfrastructure provision and use, and once again, both ofthese would be paid directly to a corporatised roadprovider.Infrastructure costsIn addition to infrastructure costs, travel by car andtruck also impacts on other people in terms of noise andair pollution, accident costs (to the extent they are notcovered by insurance), health and delay to othermotorists. These are referred to as externalities. Trying toquantify them is fraught with conceptual andmanagement difficulties, although in principle thesecosts should reasonably be met by road users.However, non-road users also benefit from theexistence of roads and currently these beneficiaries donot always contribute to road funds. If it is reasonable forthe motorist to pay the costs imposed on non-road usersand indeed other road users, then it is also reasonablethat all of those who benefit from roads should paysomething for their provision and use.➥


MOTORING DIRECTIONSCongestion in urban areas is probably the largestsingle externality. It is called an externality because anindividual considers only his or her own travel time whenmaking travel decisions and does not usually considerhow much he or she will delay others by joining thetraffic.A congestion charge must only be considered inrelation to the time and place of congestion - that is,those who do not contribute to congestion should notpay a charge. For this reason the notion that congestioncharges may relate to, for example, fuel charges isrejected.Since congestion charges relate to willingness to payand since congestion results from under-provision ofinfrastructure, there are very good theoretical reasonswhy congestion charges should be returned to the roadscorporation for the provision of infrastructure. It shouldbe noted, however, that the optimum level of congestionis not zero congestion but rather a level of congestionwhere the marginal cost is set equal to the marginalbenefit.Other externalities are typically related to particulartypes of vehicle as well as location. Any externality chargeshould therefore vary with class of vehicle. These chargesshould either be regarded as compensation for theexternality, and thus returned to general taxation, or asan amelioration measure with the proceeds used forpreventative programs, such as accident blackspot ornoise reduction programs.The Triple A is attempting to translate theseprinciples into firm policies related to road user chargesin the context of tax reform. To illustrate the type ofoutcome that might result, let us consider the currentsituation whereby we require $6.4 billion annually for ournational road program.Currently, $2 billion of this is raised throughregistration charges, meaning that the remaining $4.4billion is raised from variable charges. If this is averagedacross all fuels including petrol, diesel and LPG, it worksout to an average of 14 cpl as a variable charge. As notedbefore, this 14 cents may notionally be regarded as acharge for the provision and use of roads.The current level of excise on, for example, unleadedfuel is 43 cpl. If 14.5 cpl of this is regarded as a charge,then following the principles just outlined, the taxcomponent of this excise would equate to 28.5 cpl, orclose to a 100 per cent effective wholesale tax rate.Alternatively, under a GST/VAT system, a tax wouldbe levied on the wholesale price of petrol, plus therewould be a road user charge. Currently, the wholesaleprice is around 30 cpl, and as just mentioned, a variablecharge for road provision and use is around 15 cpl, givinga total of 45 cents.If a GST/VAT was levied at, say, 10 per cent of this 45cpl, the tax component would be around 4.5 cpl. This isabout 10 cpl less than current excise levels.With the introduction of the road user charge that theTriple A has proposed, this tax would be clear to thecommunity. It should open up the opportunity for the taxto be negotiated at a lower rate than currently, andideally at a rate commensurate with other goods andservices.Revenue from road users 1995–96CommonwealthPetroleum products excise$7,390mSales tax Motor vehicles $2,547mParts and accessories $453mFederal Interstate Registration Scheme $20mSub total$10,410mState and TerritoryFuel franchise fees$1,531mVehicle registration fees$2,022mStamp duty on registration$1,050mDriver’s licence fees $281mRoad transport and maintenance taxes $101mSub total$4,985mTotal$15,395m■MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 315


MOTORING DIRECTIONSSpeaking at a transportation industry forum held to coincide with the Asia-Pacific Economic Co-operation (APEC) meeting inCanada last June, the Chairman of The Boeing Company, Phil Condit, presented his vision for -TMeeting Asia-Pacific’s FutureInfrastructure Requirementshe Asia-Pacific region is growing rapidly, and thispresents both challenges and opportunities,especially for the infrastructure that supportsthe transportation sector. I have three premisesthat I would like to offer:1. Economic growth fundamentally followstransportation infrastructure.2. Transportation systems are no longer separate modesbut integrated sets.3. A changing world, and trade and investmentliberalisation create moreopportunities to work together.In support of the first premise,there is evidence that the great citiesof the world grew up because of theirtransportation infrastructure. Initially,these cities were either ocean ports oron major rivers or trading routes suchas the silk trade route in Marco Polo'stime.A perfect exampleA perfect example today of a waterport is where I live, Seattle, which ison Elliott Bay. And that is why NewYork is where it is, and why HongKong, Shanghai and Singapore arewhere they are. They are all waterports and great cities.In history we had a relatively briefperiod when rail was the dominantmode of transportation and a few cities grew up aroundthat form of transportation. Dallas and Chicago, forexample, became railheads because of the need to shipcommodities such as livestock to market.I don’t believe there are many cities that are trulygrowing up around air yet, but I can think of two.Orlando is one example of where air is virtually the onlyway to keep the city vital and this may become a prototypefor others. The other is Dallas/Fort Worth, where theairport was originally built between these two Texas cities,which have literally grown into one centre.16 MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 3Phil ConditI believe this trend will continue. And if theeconomies grow, and they are to be fostered andsustained, it is absolutely crucial that the infrastructure bethere to support the growth.Integrated transportThe second premise: the challenge we have is to thinkabout transportation not just as separate modes, but as anintegrated set.When container ships arrive at their port ofdestination, we need to have the rail and highwaystructures as an integrated part of theprocess to move goods to theirdestination. In other words, a port thatintegrates what comes from the sea sideto the land side and the land side tothe sea side.The same goes for air - for example,passenger and cargo on aeroplanes. Weneed to distribute them. What youreally would like is the ability tointerconnect rail, auto and bus on theland side of the airport in an efficientfashion.The new airport in Hong Kong isone example of where rail links rightinto the airport. Kansai InternationalAirport is another. Zurich is superb -the first level is for cars and taxis, thesecond for light rail into the city andthe third for the Swiss National Railway.You move from the air side to the auto,light rail, and railroad without going outside. It’s allintegrated right into the terminal. These are goodexamples to emulate.Travel time impactWe also have to recognise it’s total travel time thatimpacts on the movement of people and goods. Byintegrating systems together for the ease of the passengeror movement of the products we will have happiercustomers and faster delivery of goods.➥


MOTORING DIRECTIONSFor example, I bet that many of you who travel mayhave had that ‘total travel’ experience. It goes somethinglike this: drive to the airport, fly nine hours to a largecoastal city, change aeroplanes, fly some more, arrive, getyour luggage, get a cab or take a bus, check into yourhotel and go to a meeting that night or the nextmorning.Total travel timeThe total travel time getting there was probablysubstantial. Certainly point-to-point air would havehelped cut down on the air portion, but it’s the totaltravel time that impacts on people and freight.That’s why the recently completed Congestion PointsStudy, sponsored by the APEC Transportation WorkingGroup, is such an important contribution. It identifiestransportation bottlenecks and what can be done toresolve them.My third premise is that a changing world, and tradeand investment liberalisation create more opportunitiesto work together.We live in a changing world - a kaleidoscope of times.For example, NATO’s new partnership agreement with itsformer cold war adversary Russia, the MFN vote on Chinain the USA and Hong Kong reverting to China. There’slots of change in our world and lots of opportunity if wework together.Land, air and sea play a role here. Our transportationsectors can come together and provide the infrastructurewe need in the 21st century. We can learn from our past,listen to each other, and work together by sharing ourthoughts and ideas to solve the challenges of the Asia-Pacific region.Tremendous opportunityWe can lead or we can follow. We can envision andimplement or we can wait and fret. We can come togetherand work together or we can go our separate ways. Wehave tremendous opportunity to take advantage of ourkaleidoscope of times by working together.APEC exemplifies this working together spirit byembracing the concept of ‘open regionalism’. The goalAPEC has set for itself of achieving free and open tradeand investment in the region by 2010 for its industrialisedmembers and 2020 for developing economies has thepotential to be the most far-reaching trade agreement inhistory, and one that companies like Boeing stand to gainfrom.As a company, we strongly support free trade and thekind of objective that APEC represents. We believe thattrade creates prosperity. A world that is free of tradebarriers - not free trade blocs, but a world system - is onethat offers the best hope for humankind.The creation of such a system had its beginnings 50years ago. On October 30, 1947, representatives of 23countries meeting in Geneva signed the GeneralAgreement on Tariffs and Trade (GATT).Fifty years ago the scope of world trade wasconsiderably smaller. The whole world was different. Wedidn’t have jet aeroplanes, air express, high speed rail,personal computers, CNN, cellular telephones, CDs,recycling, McDonald's or parasailing. We were localeconomies then.Now we are global rather than just local, regional ornational. In fact, at the same time that our world hasgrown smaller because of advances in both transportationand communication, world trade has grown larger.Trade barriers reducedThe reduction of barriers to trade under successiveGATT rounds has helped manufactured exports toincrease by a factor of 26 since 1950. Last year, worldexports passed the $US5 trillion mark for the first time.This expansion in world trade has benefited manycompanies around the world, including Boeing.Our markets are international, the same as manyother industries. At Boeing, for example, about 70 percent of our commercial aeroplanes now sell outside theUSA. We project that the world's airlines will add morethan 16,000 new jets worth $US1.1 trillion during thenext 20 years. In the Asia-Pacific, we forecast that theregion will require a total of about 4,500 units worth$US380 billion over the next 20 years, making it thelargest market in the world.As we celebrate the 50th anniversary of the signing ofthat famous multilateral trade agreement in Geneva, wehave an opportunity to forge a renewal of how we willwork together for the next 50 years on trade and how tobuild our transportation infrastructure.As transportation executives and government leadersand representatives, our work on infrastructure comesfirst. Remember, build the transportation infrastructureand economic growth will follow.Meeting the challengeI believe we can succeed in meeting the challenges ofcongestion, the movement of large volumes of freightand numbers of passengers, bottlenecks at airports andmarine terminals, and source financing by beinginnovative and working together.I also believe we play a unique leadership role inbuilding the infrastructure foundation that comes first.We have the opportunity to integrate land, air and seatransportation sectors and become more efficient in therapidly growing region of the Asia-Pacific.The list goes on and on. Opportunities are endless,but the opportunity to lead is ‘one of a lifetime’. Worldtrade offers us the opportunity for creative thinking andbold leadership, not just in Asia-Pacific but around theworld.➥MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 317


MOTORING DIRECTIONSLet's start on the 50th anniversary of themultilateral trading system to create the visionfor the transportation infrastructure systemneeded for the 21st century by workingtogether. Then, I truly believe, we will make adifference.We can act collectively anddecisively to implement a vision anda plan. We might begin by workingtogether more. We can:✔ Look at different models that areworking, such as Orlando andZurich.✔ Bring customers and supplierstogether from all areas - eg,designers, builders, planners,engineers, accountants, customsagents - people who use thesystems and people who createthe systems.✔ Use computers and technology tocreate the systems we want on theskyways, waterways, and landways- eg, use global positioningsatellites more.✔ Think about what the Asia-Pacificregion has naturally to buildupon - eg, the ability to movepeople and freight to myriaddestinations.AIT CELEBRATES CENTENARYThe world motoring and touring body, Alliance International deTourisme (AIT), celebrates its 100th anniversary in 1998. A nonprofit,non-governmental organisation, the AIT represents morethan 100,000,000 individuals around the globe through its memberclubs and associations such as the Triple A.The Geneva-based organisation was founded by 17 European andAmerican cycling clubs to cater for cycling and hiking touristsseeking adventure abroad. It was not until much later that the AITacquired a predominantly motoring character.Following the two world wars, more and more people began toventure beyond their national boundaries. This unprecedentedexpansion in international tourism was encouraged by theprogression of the motor vehicle from a luxury item to anaccessible and popular means of transport.It was against that background that reciprocity of services - one ofthe cornerstones of the AIT - was gradually developed, facilitatingbreakdown assistance and repatriation of vehicles as well ascustoms transactions and the obtainment of visas through the Letterof Credit and Assistance Booklet, Carnet de Passages en Douane, TouristCarnet and Camping Card International.The AIT has continued to promote safe travel and freedom ofpersonal mobility for tourists and travellers worldwide, ensuringthat their interests are upheld at the international level. At thesame time, a firm commitment to addressing environmental androad safety concerns has been made.While the growth of the motoring population over the past fewdecades has confirmed that the AIT should retain its emphasis onautomobile tourism, close ties are maintained with ‘open-air’tourist activities.✔ Make some new models ofinfrastructure and new ways tointegrate, not just copy whatexisted in the past - eg, figure thebest way to link and integratethings together in a smallerworld.■18 MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 3


MOTORING DIRECTIONSThe Triple A Fuel Challenge -Petrol Economy Records Brokenat Canberra EventTwo new Australian records for vehicle petrol economy were set at the 1997 Triple A Fuel Challenge held inCanberra in October and contested by 50 purpose-built, lightweight machines from NSW, Victoria, SA and theACT.Overall victory in the event went to Sydney team, Creighton and Friends, which also won the open single-seaterclass and the Interjet award for the best performing fuel injected vehicle with a fuel consumption of 3877.02miles per gallon or 1372.49 kilometres per litre.Pennant Hills High School, Sydney, took out the schools single-seater category, achieving a new class record of3287.34 mpg/1163.74 kpl in the process. The other record to fall was in the open two-seater class, won by theSpirit of Canberra team with 948.06 mpg/ 335.62 kpl.Honours in the schools two-seater class went to The King’s School, Sydney (604.94 mpg/214.15 kpl), while theNRMA open street commuter class for vehicles capable of being road registered with minor modifications waswon by Stromlo High School in the ACT (113.84 mpg/40.30 kpl). Other winners were:RACV award for the best result by a Victorian school - Ringwood Secondary CollegeMcDonald’s trophy for teamwork - Cranebrook High School (NSW)Ryobi engine award - The King’s School (NSW)Rookie award - Team Intrepid (NSW)Innovation trophy - University of Technology (NSW)Best prepared vehicle - Caringbah High School (NSW)Special award for bad luck - Doonside Technology High (NSW)The University of Technology (NSW) entry which won the award for innovation at the 1997 Triple AFuel Challenge.MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 319


MOTORING DIRECTIONSConferences and Events 1998February 2-13:10-day short course on Biomechanics of Injury andVehicle Crashworthiness, Monash University,Melbourne, phone (03) 9905 1176, fax (03) 99051343, email maureen.kemp@adm.monash.edu.auFebruary 13-14:7th Biennial Australasian Traffic EducationConference, Speed, Alcohol, Fatigue, Effects,University of Queensland, phone (067) 72 3943,fax (067) 71 2679February 27-March 8:Melbourne Motor Show, contact VACC, phone(03) 9829 1111March 29-April 2:5th International Symposium on Heavy VehicleWeights and Dimensions, Maroochydore (Qld),contact ARRB Transport Research, phone (03)9881 1555, fax (03) 9887 8104April 23-24:Joint Australian Institute of Petroleum andAustralian Automobile Association conference,Petroleum Products: Challenges and Opportunities,Melbourne, contact Julie Morrison, phone (03)9819 3700, fax (03) 9819 5978, emailj.morrison@meetingplanners.com.auApril (date to be confirmed):Road Transport Forum 1998 Australian TruckingConvention, Canberra, contact Kim Bullimore orKylie Leniham (RTF), phone (06) 247 5832,fax (06) 248 9702May 3-8:9th Road Engineering Association of Asia andAustralasia Conference, An International Focus onRoads: Strategies for the Future, Wellington (NewZealand), contact Fiona Knight (Transit NewZealand), fax + 64 (4) 496-6666June 4-5:Australian Institute of Traffic Planning andManagement Annual Conference, Moving Smarter -Challenges in Traffic and Transport, Sydney, contactTrish (AITPM), phone (02) 9875 2855September 27-October 1:FISITA World Automotive Congress, Paris, contactSociete des Ingenieurs de l’Automobile, fax + 33(1) 47-20-48-73November 8-12:Intelligent Transport Systems 5th Annual WorldCongress, Seoul (Korea), contact Sandra Fitzgerald(ITS America), fax + 1 (202) 484-2902To include your event in the calendar, please forwardthe date/s, title/topic, location and contact details to theeditor (see page 2 for fax number, postal and emailaddresses).NEWS BRIEFMOTORING CLUBS LAUNCH ITS INITIATIVEAustralian and New Zealand motoring organisations have launched a major intelligent transport systems (ITS) initiative whichwill see significant advances in the services provided to their members.The initiative gives members of all of the clubs and associations on both sides of the Tasman the opportunity to acquire stateof-the-arttechnology to access roadside assistance and other services, subject to some limits on the equipment’s operation.The satellite tracking and communication project will enable the organisations to deliver a more personalised service. There isalso scope for them to develop a range of intelligent transport products and services to meet the needs of members into the21st century.With the equipment installed, roadside service can be summoned simply by pushing a button inside the vehicle, whichimmediately sends a signal that assistance is required to one of two communication call centres, depending on whichever is themost appropriate at the time. The vehicle’s location is shown on a computerised map and the nearest available patrol van isthen dispatched.The technology also allows cars with compatible central locking systems to be remotely opened in the event of a lock-outwithout the need for a road service patrol to attend, and can even warn drivers of imminent battery failure.The system is being made available progressively across the two countries from the beginning of 1998 and is operated under ajoint venture arrangement between NRMA and RACV, supported by RACQ, RAA (SA), RAC (WA), RACT, AANT and theNZAA.20 MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 3


MOTORING DIRECTIONSKey Motoring FactsRoad Fatalities1980............................................................................. 3,2721985............................................................................. 2,9411990............................................................................. 2,3311995............................................................................. 2,0171996............................................................................. 1,973Road Fatalities 1980 to 1996350032503000275025002250200017501500ROAD FATALITIES19801981198219831984198519861987198819891990199119921993199419951996Road Fatalities by State and Territory 1996NSW ............................................................................... 585Vic .................................................................................. 417Qld ................................................................................. 383SA ................................................................................... 181WA.................................................................................. 248Tas .................................................................................... 64NT .................................................................................... 72ACT.................................................................................. 23Road Fatalities per 100,000 Population1980............................................................................. 22.271985............................................................................. 18.631990............................................................................. 13.661995............................................................................. 11.171996............................................................................. 10.81Road Fatalities per 10,000 Registered Vehicles1980............................................................................... 4.321985............................................................................... 3.231990............................................................................... 2.311995............................................................................... 1.84Road Fatalities by Road User Group 1996Drivers............................................................................ 871Passengers...................................................................... 501Pedestrians..................................................................... 349Motorcycle riders and passengers ................................ 193Bicyclists........................................................................... 58All road users.............................................................. 1,973SOURCE: Road Fatalities Australia, Federal Office ofRoad Safety.Number of Persons Hospitalised1985........................................................................... 29,2481990........................................................................... 24,9611995........................................................................... 22,3681996........................................................................... 21,639Number of Persons Hospitalised by RoadUser GroupDrivers......................................................................... 9,637Passengers ................................................................... 5,675Pedestrians.................................................................. 2,740Motorcycle riders and passengers.............................. 2,419Bicyclists ...................................................................... 1,112Hospitalisations per 100,000 Population1990........................................................................... 146.271991........................................................................... 130.341992........................................................................... 123.001993........................................................................... 122.091994........................................................................... 142.081995........................................................................... 123.90Hospitalisations per 10,000 RegisteredVehicles1990............................................................................. 24.761991............................................................................. 22.681992............................................................................. 20.991993............................................................................. 20.671994............................................................................. 20.691995............................................................................. 20.45SOURCE: Road Injuries Australia, Federal Office ofRoad Safety.Commonwealth Excise on PetrolThe excise on petrol is adjusted in February and Augustin line with half-yearly movements in the CPI.cents per litreLeaded petrol ........................................................... 44.972Unleaded petrol ...................................................... 42.797Diesel ........................................................................ 42.797As at 1 September 1997ROAD INJURIESPETROLRevenue from Commonwealth Excise Dutyon Petrol1995-96Leaded petrol ....................................................... $2,563 mUnleaded petrol ................................................... $3,592 m1996-97 (estimate)Leaded petrol....................................................... $2,328 mUnleaded petrol................................................... $4,047 mSOURCE: Commonwealth Budget Paper No.1, variousyears.MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 3➥21


MOTORING DIRECTIONSState Petroleum Franchise FeesPetroleum franchise fees are no longer levied by thestates or territories. They have been replaced by an 8.1cents per litre Commonwealth excise.Revenue from State Petroleum Franchise Fees1996-97New South Wales ..................................................... $561 mVictoria .................................................................... $507 mQueensland.........................................................................0Western Australia .................................................... $233 mSouth Australia ........................................................ $159 mTasmania.................................................................... $47 mNorthern Territory ................................................... $34 mAustralian Capital Territory...................................... $30 mTOTAL.................................................................. $1,570 mSOURCE: Taxation Revenue Australia 1996-97, CatNo. 5506.0, Australian Bureau of Statistics.COMMONWEALTHEXPENDITURE ON ROADSRoad Transport Outlays 1996-97Road Grants.......................................................... $803.5 mInterstate Road Transport Charge ........................ $20.3 mRoad Safety and Land Transport Research .......... $42.1 mOther ........................................................................ $1.6 mTOTAL.................................................................. $867.4 mThe Commonwealth funds the National Highway Systemand contributes to the capital cost of some other roads ofnational importance. For roads more generally, theCommonwealth provides general revenue assistance tothe states and territories and to local government.SOURCE: Budget Paper No.1, Budget Strategy andOutlook 1997-98.General Revenue Assistance toStates/Territories (Identified Road Grants)1996-97NSW ...................................................................... $115.9 mVic ........................................................................... $84.8 mQld .......................................................................... $75.2 mWA........................................................................... $37.8 mSA............................................................................ $37.2 mTas........................................................................... $15.4 mACT........................................................................... $5.8 mNT........................................................................... $18.9 mTOTAL.................................................................. $391.0 mFrom 1995-96, the distribution of identified road grants(IRGs) was progressively moved to a distribution based onfinancial assistance grants (FAGs). In 1997-98 thesepayments will be absorbed into FAGs.SOURCE: Budget Paper No.3, Federal FinancialRelations 1997-98.General Revenue Assistance to LocalGovernment (Identified Road Grants) 1996-97NSW ...................................................................... $108.5 mVic ........................................................................... $77.1 mQld .......................................................................... $70.0 mWA........................................................................... $57.2 mSA............................................................................ $20.5 mTas........................................................................... $19.8 mACT......................................................................... $12.0 mNT........................................................................... $18.8 mTOTAL.................................................................. $373.9 mSOURCE: Budget Paper No.3, Federal FinancialRelations 1997-98.STATE AND TERRITORYREVENUE 1996-97Stamp duty on vehicle registration...................... $1,148 mDrivers’ licences ...................................................... $212 mOther (Road transport and maintenance taxes,Vehicle registration, fees and taxes ..................... $2,232 mTOTAL.................................................................. $3,592 mSOURCE: Taxation Revenue Australia 1996-97, CatNo. 5506.0, Australian Bureau of Statistics.VEHICLE FACTSEstimated Average Age of Vehicles 1995NSW ....................................................................... 9.6 yearsVic ........................................................................ 11.2 yearsQld ....................................................................... 10.4 yearsSA......................................................................... 11.8 yearsWA........................................................................ 10.8 yearsNT.......................................................................... 9.4 yearsACT........................................................................ 9.9 yearsAustralia............................................................... 10.6 yearsEstimated Average Age of Vehicles1982 ....................................................................... 7.6 years1985 ....................................................................... 8.0 years1988 ....................................................................... 9.1 years1991 ....................................................................... 9.8 years1993 ..................................................................... 10.4 years1995 ..................................................................... 10.6 yearsAverage Fuel Consumption 1995litres per 100 kilometresAll VehiclesLeaded ...........................................................................12.0Unleaded .......................................................................11.0Total Petrol ....................................................................11.4Passenger VehiclesLeaded ...........................................................................11.7Unleaded .......................................................................10.9Total Petrol ....................................................................11.222 MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 3➥


MOTORING DIRECTIONSRegistered Passenger Vehicles (a)1982.......................................................................6,233,4001985.......................................................................6,734,2001988.......................................................................7,158,8001991.......................................................................7,861,5001993.......................................................................8,280,2001995.......................................................................8,391,500(a) Yearly basis as at 30 September or 30 June after1991.Registered Passenger Vehicles per 1,000Population1982.................................................................................4091985.................................................................................4261988.................................................................................4311991.................................................................................4531993.................................................................................4701995.................................................................................478SOURCE: Motor Vehicle Census Australia - 31 May1995, Cat. No. 9309.0, Australian Bureau ofStatistics.New Passenger Vehicles (a)1982..........................................................................453,5001985..........................................................................510,9001988..........................................................................384,2001991..........................................................................430,9001993..........................................................................449,8001995..........................................................................528,500(a) For the financial year.New Passenger Vehicles per 1,000 Population1982................................................................................29.71985................................................................................32.61988................................................................................23.51991................................................................................25.01993................................................................................25.71995................................................................................28.6SOURCE: Australians and the Environment 1996, Cat.No. 4601.0, Australian Bureau of Statistics.THE AUTOMOTIVEINDUSTRYAustralian Automotive Exports by Country 1995New Zealand .................................................................30%South Korea ..................................................................13%Japan..............................................................................13%NAFTA ..........................................................................10%ASEAN...........................................................................10%Germany..........................................................................6%United Kingdom .............................................................4%(Other .........................................................................14%)TOTAL.........................................................$1,775,898,967Australian Automotive Imports by Country 1995Japan..............................................................................52%NAFTA ...........................................................................12%Germany ........................................................................10%South Korea.....................................................................7%United Kingdom .............................................................4%Sweden.............................................................................2%(Other..........................................................................13%)TOTAL .........................................................$9,225,892,150SOURCE: State of the Australian Automotive Industry1995, Department of Industry, Science and Tourism.TARIFFSPassenger motor vehicles1 January 1997 ...........................................................22.5%1 January 1998 ...........................................................20.0%1 January 1999 ...........................................................17.5%1 January 2000 ...........................................................15.0%1 January 2005 ...........................................................10.0%The tariff on non-derivative light commercial and fourwheeldrive vehicles is 5%.A penalty duty of $12,000 is also applied to volumeimports of used vehicles.MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 323


MOTORING DIRECTIONSTHE TRIPLE A ROLEThe Australian Automobile Association was established in1924 to enable the various motoring clubs andassociations to speak with a united voice on issuesaffecting their members. As the Federal Secretariat of thestate and territory motoring organisations, the Triple Aco-ordinates their activities in areas of mutual interest. Itprovides national and international representation fortheir members and, indirectly, all Australian motorists.CONSTITUENT MEMBERSNRMA LimitedRoyal Automobile Club of Victoria (RACV) LtdThe Royal Automobile Club of QueenslandRoyal Automobile Association of South Australia, Inc.The Royal Automobile Club of W.A., (Incorporated)The Royal Automobile Club of Tasmania LimitedRoyal Automobile Club of AustraliaAutomobile Association of Northern Territory Inc.24 MOTORING DIRECTIONS SUMMER 1997 ISSUE 4 VOL 3

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