Coalition claims tourism victory

The federal coalition is claiming victory after the Labor government flagged its intention to kill off planned indexation of the departure fee for people leaving the country.

Labor had planned to lift the passenger movement fee from $47 to $55 on July 1 and then index it annually in line with rises in the consumer price index (CPI).

The departure charge is levied by airlines and shipping companies at the time a ticket is sold to the passenger.

During question time on Tuesday, Acting Prime Minister Wayne Swan said the government was interested in getting the legislation passed and would discuss the matter with crossbench MPs.

But later the government flagged an amendment to ditch the indexation part, and just keep the $8 increase.

Opposition customs spokesman Michael Keenan said Labor had caved in to pressure from the coalition and tourism industry.

“It is good to see that the government have come to their senses and are supporting the coalition’s amendment to the passenger movement charge bill,” he said in a statement.

The amendment from the government is identical to one Mr Keenan foreshadowed.

He said removing the planned CPI indexation would save travellers from being slugged an extra $156.6 million over the next four years.

Earlier, Tourism and Transport Forum chief executive John Lee said the increase would have “a very negative impact” on his industry.

“What will that say to international visitors that come to our country? It will say this: welcome to Australia, you will pay more and you will wait longer,” he said.

“That is not the right way to introduce someone to our beautiful country.”

Opposition Leader Tony Abbott was also crowing about the backdown, saying it showed the government’s budget was “unravelling before our eyes”.

“They were going to be defeated on a budget bill on the floor of the lower house,” he told Fairfax radio.

“This is a government which can’t get aspects of its budget past the lower house of parliament and it just goes to show how tenuous and how fragile the current government is.”

Shadow treasurer Joe Hockey said the government must explain the impact of the change on its projected $1.5 billion surplus for 2012/13.

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