Gillard told to look at congestion tax

The Gillard Government has been urged to consider a congestion tax to deal with growing traffic chaos.

It is one of dozens of ideas floated for debate in three discussion papers released yesterday by Environment and Population Minister Tony Burke.

After Prime Minister Julia Gillard promised during the election campaign not to “hurtle towards a Big Australia”, Mr Burke said he would announce a population strategy in April, but confirmed it would not include a population target.

It is the second time in less than a year the Federal Government has faced calls to introduce road user taxes.

The idea was also recommended by Ken Henry’s tax review, but shelved.

It was given another push yesterday by Henry review member Heather Ridout, who heads up the Australian Industry Group and was chair of one of the reports looking at productivity.

In a section dealing with traffic, it suggested a congestion tax on people using roads at peak times, staggering working hours and more investment in clean, efficient and reliable public transport.

Mr Burke dodged questions about the congestion tax, saying tax was a matter for Treasurer Wayne Swan.

But he did say he was concerned about people who got home 30 minutes later than they used to because commuting was taking longer.

“It is the time you don’t spend at home,” he said.

Ms Ridout said the Government would have to make tough decisions.

“I think a growing population, well managed, is really the source of all good things. It will enable renewal, enable a more diverse and dynamic economy,” she said.

Ms Ridout warned against slashing immigration, saying China and India were growing and Australia needed to be an open country.

But another report, chaired by former NSW premier Bob Carr, warned that excessive population growth would cost more than it could benefit the country.

Mr Carr’s report “challenges the myth that rapid rates of population growth, based on high rates of immigration, are necessary to support high rates of economic growth and Australians being better off”.

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