Tony Abbott rebukes Joe Hockey over 'poor people don't drive' comments

Updated

Prime Minister Tony Abbott has rebuked Treasurer Joe Hockey over his analysis that poorer Australians are less likely to be affected by an increase in fuel taxes, because they do not drive as much.

Mr Hockey has been under fire for suggesting the Government's proposed changes to the fuel tax will hit higher income households harder, as poorer people "don't have cars or actually don't drive very far".

Speaking this morning after returning from his whirlwind trip to the Netherlands, London and the United Arab Emirates, Mr Abbott offered his "full support" to Mr Hockey.

But he slapped him down over the car comments, saying: "Well, plainly, I wouldn't say that."

"The best thing we can do for all Australians, rich and poor alike, is get the budget back under control so that the Government can continue to deliver effectively in the medium and long-terms the services that every Australian needs, but particularly low income people." he told reporters in Bungendore.

"I don't say for a second that all elements of the budget are popular. It is not easy to address a debt and deficit disaster."

Opposition Leader Bill Shorten says Mr Hockey is on his own.

"It's clear to me that this friendless budget, this unfair, friendless budget, now has a friendless Treasurer championing the budget," he told reporters in Melbourne.

Earlier, Government frontbencher Kevin Andrews claimed Mr Hockey had been misreported.

"I think Joe's comments were somewhat taken out of context, he was simply pointing out what the stats show in terms of the use of cars and the use of fuel and things like that." he told ABC Dubbo.

"I think there is a bit of ... mischievousness in political reporting at the moment, that the slightest comment is taken, and I think often, taken out of context."

Nationals colleagues and Victorian Motoring Enthusiasts Party senator Ricky Muir rounded on the Treasurer yesterday, saying he failed to understand the reliance on cars in regional and rural areas, while Liberal senator Cory Bernardi said the comments were an unneeded distraction.

This morning Christopher Pyne, the Leader of the Government in the House, was asked six times on Channel Nine to support Mr Hockey's judgement, but defaulted to backing the Treasurer's general performance.

Sorry, this video has expired Video: Christopher Pyne on Channel Nine (ABC News)

"I am not going to cop criticism about Joe about support for low-income workers because Joe's efforts since he was Treasurer have all been about reducing the cost of living pressures that Labor has been piling on." he said.

"Joe has been standing up for low-income workers and middle-income workers his whole political career."

Mr Pyne stated three times that Mr Hockey was "doing an inspirational job as Treasurer", and declared he had the full support of the Government.

"Of course he does. Absolutely," he said.

On the same show, Opposition frontbencher Anthony Albanese found Mr Pyne's support disingenuous.

"You had six opportunities to say you agreed with Joe Hockey said, and you refused to do so. Why? Because what he said was rubbish," Mr Albanese said.

"If you are in an outer suburb or you are in a regional community, you have no choice but to drive."

Yesterday Mr Hockey stood by his comments about car use, saying he was presenting facts from the Australian Bureau of Statistics.

"The Australian Bureau of Statistics data states that the highest 20 per cent of household incomes pay three times more in fuel taxes than the lowest 20 per cent of household incomes," he told the ABC yesterday.

"The Australian Bureau of Statistics data is not something that I've concocted – it is the reality. These are dealing with the facts."

However, the Parliamentary Library found in 2001 that raising the fuel excise would be regressive, because low-income earners paid a higher proportion of their income on the tax than higher earners using the same amount of fuel.

Mr Shorten says the Government should go back and rewrite its budget and rethink its policies.

"I think the Government should drop its paid parental leave scheme," he said.

"I think there's only one person in Australia who wants it, that's Tony Abbott. That would save a lot of money to the bottom line. Providing $50,000 payments to people who don't need them, to me, is the height of arrogance."

Topics: hockey-joe, government-and-politics, federal-government, australia

First posted