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LPG cars set to crash



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N E W S • FI-E L E A S E

8 March 1993

LPG CARS SET TO CRASH

The, Federal Minister for Resources, Alan Griffiths, today warned that the resale value of cars converted to LPG would crash under a GST.

"Labor has implemented a consistent policy of keeping LPG free of tax, therefore guaranteeing a sizeable price advantage over petrol.

"Dr Hewson's GST tax policies would reverse all that by taxing LPG and resulting in a dramatic decline in the LPG industry.

"Speakers at the Australian LPG Association's annual conference last week. highlighted their belief that under the Opposition's tax policies, the automotive industry would go into rapid decline.

"For example, motorists in Perth who converted to LPG under Dr Hewson would need to drive over 400,000 km to get their money back. In New South Wales they would have to drive some 200,000 .km. , In both cases, conversion to LPG would be completely unviable.

"The industry has made it clear that current Government policy works," Mr Griffiths said.

"Under Labor's policy of keeping. LPG tax free, its use has grown to the point where 10 per cent of fuel used by vehicles in Australian cities is. LPG. This makes a key contribution to improving Australia's air quality and keeping smog levels down."

A decline in the automotive LPG industry from the GST would mean that the 100 thousand motorists who have invested $2000 to use this fuel would be well and truly dudded by Dr Hewson.

"The resale value of their cars would be dramatically reduced by . the Coalition's short sighted policies."

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