L.P.G. president ‘out of step’

Press, 13 June 1978, Page 14

L.P.G. president ‘out of step’

tax write-off of the balance of purchases of retail and certain other L.P.G. storage vessels should do much to encourage industrial and automotive use of the fuel,” Mr Gair said.

Parliamentary reporter “The president of the L.P.G. Association and general manager of the Christchurch Gas Company (Mr C. S. Kennedy) would appear to be out of step with others in the industry claiming that Budget incentives for liquified petroleum gas will do little to encourage development of the industry,” said the Minister of Energy (Mr Gair). “I am surprised that Mr Kennedy views the Budget announcements in such a negative light. If the manufactured gas industry is not interested in developing L.P.G., there are many others who are keen to do so,” Mr Gair said. The present bulk price of L.P.G. in Christchurch was about 25c a litre. The 5c temporary freight subsidy would reduce this to 20c and a further drop to about 16c a litre could be expected after the introduction of eight-tonne trailers. “The cash grant of 25 per cent of qualifying expenditure and 100 per cent

Early discussions would be held with the gas in dustry to find the best way to secure its investment in L.P.G. before Maui L.P.G. became available.

Use of L.P.G. for automobiles was given additional incentive by the 100 per cent tax write-off for the conversion of vehicles from motor-spirits to L.P.G. “For South Island gas undertakings, the 25 per cent cash grant and 100 per cent tax-write-off on the balance of qualifying expenditure for the purchase of approved plant and gas storage facilities must be of considerable help in preparation for Maui L.P.G.”

Mr Gair suggested that Mr Kennedy wait until all the administrative details for the new incentives were completed before criticising further.