Perhaps unsurprisingly the issue of rising oil prices dominated this month’s PTUA East and Outer East Branch Meeting. It is clear that rising oil prices are eroding disposable income resulting in serious repercussions for the future economic viability of Melbourne and the Outer East.
Research from the Victorian Council of Social Services (VCOSS) has shown that better access to public transport would provide residents with the income necessary to pay off their housing mortgages up to eight years earlier. Excessive car dependence is clearly trapping residents into a greater level of financial instability.
Lower levels of disposable income are also detrimental to businesses, particularly smaller and localised businesses. It is a fact that as disposable income decreases there is less income available for people to spend on other goods or services. Less consumer consumption will result in lower profit margins for business.
The oil shocks and resulting recessions of the late seventies and early eighties are testament to the economic damage that is caused by skyrocketing oil prices. The difference now of course is that growth from China and India is fuelling these increases and that supply is unable to be increased to meet this unprecedented demand.
Various ‘solutions’ have been provided to reduce the price of petrol, yet the RACV has failed to understand that the removal of taxation on petrol will do little to stop the adverse affects of further pricing increases.
The fact is that the only way to avoid the adverse effects of petrol price increases is to reduce the current level of excessive car dependency that currently exists in Melbourne and particular within our outer suburbs.
The majority of criticisms against the Bracks Government over the previous six years have arisen due to the handling of the Transport portfolio:
Stating that Maroondah Highway does not warrant upgraded bus services just proves how out of touch Peter Batchelor is with the two-thirds of Melbourne that lacks readily available public transport.
Alex
It’s interesting to see Peter Batchelor this week commented that Maroondah Highway and Ringwood does not warrant upgraded bus services.
The Director of Public Transport, Jim Betts, has even in the last couple weeks declared outer suburbs as being poorly served by public transport and REQUIRING dramatic improvements to the bus network.
The question is who is Peter Batchelor listening to? Surely no one who runs or uses public transport.