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Monday, 7 November 2005
Page: 175

Mr Murphy asked the Treasurer, in writing, on 15 September 2005:

(1)   Has he seen the article titled ‘Motorists give gas a run as cost of petrol soars’ in the Financial Review on 10 September 2005 which reported that liquid petroleum gas (LPG) is cheaper and better for the environment.

(2)   Will he withdraw the proposed 2.5 cents a litre excise on LPG to be introduced in 2008; if not, why not.

(3)   What is the Government doing to encourage (a) motorists to convert to LPG, (b) motorists to use a mix of 10 per cent ethanol with gasoline, and (c) the production of cars that run on 25 per cent to 100 per cent ethanol.

Mr Costello (Treasurer) —The answer to the honourable member’s question is as follows:

(1)   Yes.

(2)   Excise will not apply to LPG until 1 July 2011. For further information see the 2004-05 Budget papers.


(a)   See the Prime Minister’s press release of 16 December 2003.

(b)   and (c) The Government’s policies in relation to biofuels such as ethanol are set out            in the Prime Minister’s press release of 22 September 2005.