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Fears for region’s LPG market

17 Mar, 2011 03:00 AM
A DOZEN North West business and industry representatives have signed a letter demanding the federal government rethinks its proposed new tax on alternative fuels.

An historic meeting of consumer, agricultural, small business and motorists’ advocacy groups was held in Tamworth on Monday to raise concerns about the regional impact of a planned new tax on LPG.

It was argued the fledgling alternate fuels industry, as well as two million traditional users in the agriculture, food processing and heating industries would be disproportionately impacted in regional areas, possibly losing LPG as a fuel option altogether.

At the end of the meeting, representatives of Baiada, Tamworth Radio Cabs Co-operative, Tamworth Container Packing, Peel Valley Milk, Namoi Cotton Co-op, Diesel Gas Technologies and Gwydir Caravan Parks among others, signed a communiqué addressed to all federal MPs.

The letter called on the federal government, The Greens, the independent MPs and senators and the Coalition to recognise a list of collective concerns. Among these were the apparent contradiction of introducing an excise on LPG, at odds with the government’s policy on energy security and carbon reduction.

“Why tax an alternative fuel that will underpin our future energy needs, and is cleaner and greener than petrol, diesel and coal?” the statement said.

The group warned if the LPG market collapsed in regional Australia, the impact would be felt by all consumers and other businesses.

“LPG is commonly used throughout regional Australia; by small business operators, those in the agricultural sector (diary, poultry, horticulture and cotton).

“(LPG) is considered an essential and economical transport and heating fuel by many working families. The increase in costs will be unsustainable. If the excise is introduced, many jobs in regional Australia will be lost.”

The group argued an excise would punish those who had made the decision to convert to a greener fuel source.

“When consumers opted for LPG, they did so in good faith. They believe they are doing the right thing by the environment, their business and customers. We believe the current incentives for consumers to convert to the cleaner fuel from the dirtier, costlier petrol or diesel must be maintained. We call on the government to support regional Australians’ access the cheaper, cleaner and greener transition fuel.”

Other industry representatives signatory to the communiqué included LPG Australia, Namoi Cotton Co-Op, Carroll Cotton, Quast Turkeys, Elgas Tamworth and the Tamworth Taxi Board.

It is understood the University of New England is considering supporting the letter.

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comments


Date: Newest first | Oldest first
LPG is not an alternative or green fuel. It is made from crude oil in oil refineries.
Posted by steve, 17/03/2011 11:35:10 AM, on Northern Daily Leader
LPG should be taxed at the rate of other fossil fuels as it is a fossil fuel! The potential for damage to groundwater, aquifers and other aspects of the environment is alarming. This is NOT a 'clean green' fuel.
Posted by yarrassal, 19/03/2011 5:55:44 AM, on Northern Daily Leader

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