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Environment the winner as diesel gives way to gas

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The Australian Gas Association




The urban environment and health of Australians are the big winners in new legislation that provides grants for transport operators to convert from diesel to alternative fuels, Australia’s natural gas and LPG industry representatives said today.

“What we have in the GST package, and subsequent legislation that gives effect to it, is a change that will bring many long-term benefit&.to.the environment by re-shaping the nation’s transport industry.'' ...................

“The Federal Government and the Australian Democrats are to be congratulated for delivering one of the best transport and'environmental outcomes the nation has seen. It demonstrates that policy makers now recognise the strong environmental benefits of using dean fuels such as natural gas and liquefied petroleum gas,” gas industry representatives said.

The Australian Gas Association, the Australasian Natural Gas Vehicles Council and the Australian Liquefied Petroleum Gas Association, said the package provided lower cost diesel for rural areas while encouraging the expanded use of CNG (natural gas) and LPG in public and commercial transport.

“Importantly, the package provides a total of $75 million over four years toward the cost of converting buses and urban commercial vehicles over 3.5 tonnes gross vehicle mass from diesel to gas.” the industry representatives said.

“This represents a rebate of 50 percent of the capital cost of conversions and new original equipment.

“As well, clean fuel grants for CNG and LPG are applicable where the diesel excise rebate is applied. On this issue the industry is currently negotiating with Government to ensure the per litre rebate maintains the current relative price difference between diesel and gaseous fuels.

“As a result of the package, we’re now confident of a quick take up of gaseous transport options because of the tangible benefits that will accrue."

Details of the incentives and how they will be applied are contained in the Diesel and Alternative Fuels Grants Scheme Bill 1999, which was passed by the Senate last night.

Statement ends: 30 June 1999

The Australian Australasian Natural Australian Liquefied

Gas Association (AGA) Gas Vehicles Council (ANGVC) Petroleum Gas Association (ALPGA)

For further information please contact: Greg Evans at AGA on 02 6247 3955 or 0418 480 023 Sean Blythe at ANGVC on 0416 112 204 Chris Greenhlll at ALPG A on 02 9319 4733