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.