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Thursday, 17 April 1980
Page: 1558

Senator CARRICK -Yesterday Senator Walshasked me a question about the basis for the subsidy scheme on liquefied petroleum gas.I have details which amount, in staccato form, to a page and a bit on the basis for the subsidy scheme. I suggest that the answer be incorporated in Hansard. I am happy to read it, but in fact it will be a matter for response by honourable senators by way of questions if they wish to examine it.

The PRESIDENT -Is leave granted for the incorporation of the answer in Hansard ?

Leave not granted.

Senator CARRICK - The answer reads:

1   . Subsidy to apply to all sales of LPG in cylinders of46 kg or less, excluding fork-lift truck cylinders. (It is estimated that less than 5 per cent of gas supplied in cylinders, other than for fork-lifts, is used for industrial/commercial purposes).

2.   The basis of subsidy payment to:

(a)   Suppliers of Reticulated Gas- will be calculated on the quantity of LPG and Naphtha feedstock used in gas production, in the same proportion as quantity of subsidisable (household) sales bears to total sales. This ratio is to be revised at the end of each billing period, which varies between utilities. (This method of calculation will mean that the subsidy will also apply, based on the ratio, to the normal losses incurred in the manufacture and reticulation of gas).

(b)   Bulk Deliverers and Resellers of Bottled LPG-to the retailer of the gas based on the quantity of actual sales for household use excluding resellers who have already obtained subsidy in terms of Section 1 above.

3.   The subsidy to be claimed:

(a)   For reticulated systems- by the company or authority reticulating the gas.

(b)   For bulk systems:

(i)   by the distributor making the sale to the domestic user; and

(ii)   by the independent reseller who obtains his supplies from a distributor for sale to domestic users.

(c)   For cylinder systems- by the distributor responsible for filling cylinders of 46 kg or less from a bulk supply.

Such claimants to be registered with BACA for the purpose ofclaimingSubsidy.

4.   Household accounts to be carefully defined to include bona fide domestic usage, e.g., caravan dwellers, old peoples homes, non-profit residential type institutions and schools.

5.   In the case of dual usage (e.g., fish and chip shop with attached residence) the predominant use will determine whether or not subsidy is applicable. If domestic use is the minor component subsidy can only be applied if separate metering or storage is provided.

6.   Failure by subsidy claimants to pass on the subsidy benefits or the claiming of subsidy on ineligible sales will render them liable to penalties.

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