MPs drive debate

THE Federal Government has refused to comment on ‘budget speculation’ that hills people could miss out on cheaper fuel.
Opposition MPs claim a Government review will see the LPG conversion rebate scheme scrapped six years earlier than scheduled in the name of cutting Government spending.
Casey MP Tony Smith said cancelling the scheme would mean many residents would not be able to afford the switch to cheaper and greener fuel.
“Casey residents, who often have to travel longer distances to work and public transport, will no longer have an affordable alternative to escape continually rising petrol bills,” he said.
He said the scheme had helped families to save money on their fuel bills.
“The fact that the Rudd Government is openly considering axing this scheme shows just how out of touch it has already become with the challenges families face,” he said.
The scheme provided $1000 towards the cost of new factory fitted LPG vehicles and $2000 towards the cost of converting a new or used vehicle to LPG until June 2014.
Mr Smith said the scheme had proved particularly popular in outer-suburban areas such as Casey.
He said significant job losses at LPG conversion factories may also result from the program being cancelled.
La Trobe MP Jason Wood said La Trobe residents would be among the hardest hit by a decision to scrap the subsidy.
Mr Wood said more than 2500 private motorists in La Trobe had taken advantage of the $670 million scheme since it was introduced in August 2006.
“It is well understood that those hardest hit by these cuts are residents in outer-suburban areas like La Trobe who commute by car into the city for work,” he said.
He said La Trobe residents were being burdened on two fronts.
“First, they are being forced into their cars by the State Labor Government which refuses to upgrade our public transport system,” he said.
“After being forced into their cars, the Rudd Labor Government then takes away the opportunity for residents to be subsidised for the costs involved in converting to LPG.”
He said LPG could reduce driving costs by up to $200 a month.
“The rebate is an enormous help in times of increased mortgage interest rate stress,” he said.