The Government is in a dilemma. Having invested much political capital in FuelWatch, does it move heaven and earth to get it through? Or does simply blame the Opposition for not supporting the policy, and privately breathe a sigh of relief when the Senate shoots what has been widely attacked as a dog of an idea?

It is clear from the polls that voters believe Kevin Rudd promised to do something about rising petrol and grocery prices before the federal election last year. Nick Xenophon put his finger on the Government’s problem of balancing perception and reality when he said: “I just don’t think [FuelWatch is] going to do what it’s meant to do.”

Family First senator Steve Fielding has suggested that Assistant Treasurer Chris Bowen is so convinced it will work he can test it in his own home state first. But another key crossbench senator, independent Nick Xenophon, says FuelWatch’s 24-hour rule is a “dead parrot” that cannot be fixed.

The Government needs the support of the Greens and senators Fielding and Xenophon to get its legislation through the upper house. “We’re still wanting to understand how it won’t push petrol prices … up and we also want to know how FuelWatch won’t squeeze out independents,” said Senator Fielding.

While some of the Rudd Government’s changes to Australia’s immigration policy may be able to be introduced by regulation, the rest will require the passage of laws in the Senate. The Greens are likely to support the changes but the support of Family First is unclear.