Australia's consumer watchdog is backing calls for more road tolls and lower fuel taxes to fund new roads.
The Australian Competition and Consumer Commission chairman Rod Sims told food and grocery industry leaders on Wednesday that he supports draft recommendations by the government's competition policy review for cost-reflective road pricing.
This involves increasing road tolls where motorists are charged based on their location, time of travel and congestion.
"A key benefit is that such changes would make road investment decisions more responsive to the needs and preferences of road users," Mr Sims said.
"This would see particular road bottlenecks addressed much more effectively than they are today."
Mr Sims said this can be achieved without motorists having to pay more overall.
"More effective road user charges can be offset by lower fuel taxes which currently account for one quarter of fuel prices," he said.
He said the ACCC also welcomed the draft recommendation to deepen competition in liner and coastal shipping services.
This would reduce production costs for the food industry, he added.
The competition policy review, commissioned by the federal government and headed by professor Ian Harper, is the biggest review of competition regulations in 20 years.
Prof Harper released his draft report last week, calling for changes to competition rules and regulations.
Mr Sims said the ACCC was working on a detailed response to the draft report.
Prof Harper is due to hand his final report to the government in March 2015.
Share
