2008 Press release

                 PR324 

The High Cost of Rising Fuel Prices in the Torres Strait

For Immediate Release 2/7/2008

As fuel prices across the world reach record highs, the remote Torres Strait Islands are being hit with prices that far exceed those with which mainland Australian’s are contending.

TSRA Chairperson, Mr. Toshie Kris, said that with fuel prices continuing to rise into the foreseeable future, it is necessary that the Australian Government introduce measures to minimise the negative impact that the rises may have on the standard of living in the Torres Strait.

“While petrol prices on the mainland are hovering around $1.50/$1.60, prices at

“See Hops Trading” on Thursday Island have reached $2.20 per litre for unleaded petrol and $2.25 for outboard fuel”, said Mr. Kris.

“On the outer Islands the situation is much worse, with fuel in the communities costing as much as $2.85 with speculation that prices will hit $3.00 by the end of the year.

“Travel by boat for transport and fishing is integral to the lifestyle of people living on Thursday Island and particularly the outer Islands, where many communities depend on fishing for income and sustenance and are consequently being hit particularly hard by soaring fuel prices.

“Options for assistance from Government include the reinstatement of the fuel subsidy that was abolished in July 2006, a subsidy for ferry travel for the pensioners and the disabled, freight subsidies for the Torres Strait and NPA region - similar to those currently in application in Tasmania (Tasmanian Freight Equalisation Scheme) and funds to help establish and maintain sustainable community gardens for the supply of fresh fruit and vegetables.

“I call on the State and Australian Governments to act quickly to relieve the pressure that these prices rises are putting on the people of the Torres Strait so we may have the same opportunities and standard of living as Australian’s residing on the mainland and so we can close the gulf between Indigenous and non-Indigenous health.

“The Torres Strait’s remote location and the consequent increased cost of transporting fuel and other goods and services from the mainland have significantly raised the cost of living and impacted heavily on an already lower than average standard of living for the majority of the Indigenous community.

“Exacerbating the negative impact of the rise in the price of fuel is the lower than average income amongst a majority of Torres Strait Islanders.

“Over 2000 Torres Strait Islanders derive their income from the Community Development Employment Project Program, taking home, on average, approximately $12,629 per year, leaving little to spend on exorbitantly priced goods and services.

“Food generally and groceries in particular are already significantly more expensive in the Torres Strait than on the mainland, due to the distance it must travel to get here.

“In addition, the cost of accommodation in the region is at a crisis point, with Islanders unable to afford to own their own house and weekly rental prices reaching $850 per week for a small two bedroom house.

“As a result, the standard of living in the Torres Strait, which is already below that of mainland Australians, is likely to fall even lower, possibly widening the gap between the Indigenous and non-Indigenous health status in the region.

“With Torres Strait Islanders having to spend more on fuel for their vehicles and boats, there is even less disposable income to spend on expensive fruit and vegetables, which directly effects their health and wellbeing.

“In the Torres Strait, environmental health problems such as diabetes and heart disease are disproportionately high compared to the Australian average, causing government departments and community organisations to campaign heavily to educate and encourage Torres Strait Islanders to adopt healthy eating and a healthy lifestyle.

“These efforts will fail to provide positive outcomes if communities do not have money to spend on healthy food.

“Government efforts to address areas of disadvantage through schemes such as low interest loans to facilitate home ownership, will also be undermined because Islanders will be not be in a financial position to take advantage of these programs.

“Fishermen, and in particular cray fishermen, provide a major income avenue for Torres Strait Islanders and it is the fishers who are amongst those who are being hit the hardest.

“The frequency and length of boat trips by fishermen determine the amount of catch they bring home.  As boat fuel prices hit $2.85 on the outer Islands, fishermen have been forced to shorten their trips and venture out less frequently, striking a major blow to their main food and income source.

“Other local businesses are also suffering, including ferry owners who operate the sole mode of commercial transport between several Islands and have had to absorb the increasing cost of fuel.

“Thursday Island ferry operators have indicated that they may be forced to increase passenger fares because diesel has reached almost $2.00 per litre.  Should they do so, that is one more cost increase with which passengers will have to contend”, said Mr. Kris.

ENDS

TSRA Media Contact: Ana Talko Ph: 07 4069 0700.

www.tsra.gov.au