BUS ALLOWANCE SHOULD BE LINKED TO C.P.I: HALL

The Nationals' Education spokesman Peter Hall has called for the State Government to link the school bus conveyance allowance to the Consumer Price Index (CPI).

Mr Hall said today the value of the allowance was being rapidly eroded as transport costs increased, particularly the price of petrol.

"The Nationals advocated for and were very happy to see the change from a flat rate to a conveyance allowanced based on a per km distance travelled," Mr Hall said.

"The only disappointing aspect of that decision was that the conveyance allowances were not indexed to CPI.

"Since 2002, this has meant an erosion in the real value of the allowance which has been felt by parents and private schools providing their own school travel needs. The increasing price of petrol has been a significant factor in the recent rapid increase in school transportation costs."

Mr Hall said for one school in his electorate, the cost to the school community of bussing students had increased by about $10,000 (16 percent) over the past two years. In the next year that could increase by up to another 10 percent as a result of increased costs including petrol prices.

In a letter to the Education Minister, Mr Hall called for CPI indexation to apply and be backdated.

"I note the Bracks' Government has indexed all fees, fines, levies and charges paid by Victorian taxpayers, which resulted in an additional $80 million or more to State revenue collected.

"It only seems fair that allowances paid also be indexed to keep up with inflation."

Mr Hall said the State Government should backdate the indexation to 2003.

"This is a particularly important issue for country areas, as rural communities rely heavily on bus transport to get children to school.

"Families and the schools bear the brunt of the cost increases and while the increase in conveyance allowance achieved in 2002 helped, those gains are being rapidly eroded because the allowance is not indexed to the CPI."

Media contact: Peter Hall's office (03) 5174 7066