More incentives for L.P.G. use coming

Press, 9 December 1982, Page 26

More incentives for L.P.G. use coming

PA Wellington ■ More Government incentives for liquefied petroleum gas use by motorists are likely next year, to match a $lOO,OOO industry promotion planned to boost use in the North Island. The promotion, due to start in mid-1983, was approved at the annual meeting of the L.P.G. Association, and promises of more Government support came in a speech by the Minister of Energy, Mr Birch. “Once the. tanker gets going the incentives will be extended. There will be more to get the market excited,” Mr Birch said. The removal of sales tax on L.P.G. car tanks was likely closer to the December, 1983, opening " date for the Dunedin bulk port depot. The tanker was likely to be running by August next year. Mr Birch said that he had . some worries that the major loans scheme, from January, for L.P.G., C.N.G., and

conversions would prove too popular. “I am a little bit worried we might have too many conversions. But I believe there is a feeling in the South Island that they are disadvantaged because there is no compressed natural gas,” he said. Only 11 of 135 L.P.G. refuelling stations in New Zealand are in the South Island. Mr Birch rated next year a critical time for the L.P.G. industry, and said the Liquigas consortium handling bulk port distribution from New Plymouth was “progressing very well, given its problems.” These included a B.P. review of the $lOO million project earlier this year, and planning opposition to all main port depots except Dunedin. . Negotiations had begun between Liquigas and bankers for off-shore finance, said Mr Birch.