Recommendations
Recommendation 1
3.136 The
committee recommends that Geoscience Australia, ABARE and Treasury reassess
both the official estimates of future oil supply and the 'early peak' arguments
and report to the Government on the probabilities and risks involved, comparing
early mitigation scenarios with business as usual.
Recommendation 2
3.145 The
committee recommends that in considering a less oil dependent policy scenario,
the Government take into account the concerns expressed in the World Energy
Outlook 2006, namely -
- current trends in energy consumption are neither secure nor
sustainable;
- energy policy needs to be consistent with environmental
goals, particularly the need to do more to reduce fossil fuel carbon dioxide
emissions.
Recommendation 3
7.63 The
Committee recommends that the Government publish the results of its review of
progress made towards meeting the biofuels target of 350ML per year, including
which companies are meeting the target.
Recommendation 4
7.64 The
committee recommends that the Government examine the adequacy of funding for
lignocellulose ethanol research and demonstration facilities in Australia, and
increase funding, where appropriate.
Recommendation 5
7.96 The
committee recommends that the Government commission a research group within the
Department of the Treasury to identify options for addressing the financial
risks faced by prospective investments in alternative fuels projects that are
currently preventing such projects from proceeding. This group should determine
how these risks might be best addressed in order to create a favourable
investment climate for the timely development of alternative fuel industries,
consistent with the principles of sustainability and security of supply.
Recommendation 6
8.21 The
committee recommends that the Government, in consultation with the car
industry, investigate and report on trends in the fuel efficiency of the light
vehicle fleet and progress towards the 2010 target for the fuel efficiency of
new passenger cars. If progress under the present voluntary code seems unlikely
to meet the target, other measures should be considered, including incentives
to favour more fuel efficient cars; or a mandatory code.
Recommendation 7
8.35 The
Committee recommends that Australian governments investigate the advantages and
disadvantages of congestion charges, noting that the idea may be more
politically acceptable if revenue is hypothecated to public transport
improvements (as has been done in London, for example).
Recommendation 8
8.56 The
committee recommends that Commonwealth support for Travelsmart projects be
maintained beyond the currently planned termination date.
Recommendation 9
8.78 The
committee recommends that corridor strategy planning take into account the goal
of reducing oil dependence as noted in recommendation 2. Existing Auslink
corridor strategies should be reviewed accordingly.
Recommendation 10
8.94 The
Committee recommends that the government review the statutory formula in
relation to fringe benefits taxation of employer-provided cars to address
perverse incentives for more car use.
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