The WA government doubled the gas conversion subsidy for family cars, leading to increased conversions and a national debate. The government aims to manage conversion prices and streamline subsidy administration with the Commonwealth.

AnsweredQoN 460Legislative Assembly
Asked
15 August 2006
Portfolio
Planning and Infrastructure

QuestionView source ↗

GAS CONVERSION SUBSIDY
What has been the response to the Carpenter government’s doubling of the gas conversion subsidy for family cars? Mr A.D. McRAE

AnswerView source ↗

I thank the member for Swan Hills for the question. Of course, as a result of the Carpenter Labor government’s announcement last week that it would double the subsidy for the conversion of vehicles to liquefied petroleum gas, we are at the front of a wave of debate across the country. It is very pleasing that the federal government has announced a new policy that will add $2 000 to that subsidy. The Premier talked about that a bit earlier. In Western Australia last year, 2 779 vehicles were converted from petrol to LP gas. Those conversions were carried out by 1 200 licensed gas installers in Western Australia. I will be holding discussions with the Motor Trade Association about how to increase the number of licensed gas converters operating in the state. As a result of the change that was announced last week, it is forecast that this year in Western Australian more than 4 000 motor vehicles will be converted to LPG. That is a great boom for Western Australian families. It is this government that has led that charge. The debate about suffering at the hands of the Howard government and the interest rate rises that the federal government promised would never happen, and the promise of relief from the increase in fuel prices, which was delivered only after the Howard government decided to follow our lead - Several members interjected. Mr A.D. McRAE : That is absolutely right. I heard members of the opposition say that this program was introduced some time ago. That is true. Since October 2000, 11 000 cars in Western Australia have been converted from petrol to LPG. The overwhelming message from Western Australian families is that if we give them incentives and assistance, we are on the cusp of converting a substantial portion of the energy use in cars from petrol to gas. The real challenge for us is to ensure that we can maintain the number of licensed gas converting agencies, in the light of what will be a significant rise in demand, and that the prices charged for conversions are managed so that there is no increase in the price. I note some of the prices that are being quoted nationally. It has been suggested that conversions will cost $2 500. The reality in Western Australia is that the price for a gas conversion is between $1 800 and $3 000, depending on the model and age of the car. According to the Motor Trade Association, the trick to maintaining price and quality is to increase the number of licensed participants. I will be holding discussions with the Motor Trade Association to determine how we can go about doing that. The state government has been given an important additional task in light of the federal government’s belated move to join us. The administration of the subsidies should not require Western Australians to fill out one gas conversion subsidy form for a state subsidy and another one for a commonwealth subsidy. I will write to the commonwealth minister in the next week or so to offer to administer the subsidy through the licensing business unit of the Department for Planning and Infrastructure so that there is a single-stop shop for Western Australians.
Mr A.D. McRAE replied: I thank the member for Swan Hills for the question. Of course, as a result of the Carpenter Labor government’s announcement last week that it would double the subsidy for the conversion of vehicles to liquefied petroleum gas, we are at the front of a wave of debate across the country. It is very pleasing that the federal government has announced a new policy that will add $2 000 to that subsidy. The Premier talked about that a bit earlier. In Western Australia last year, 2 779 vehicles were converted from petrol to LP gas. Those conversions were carried out by 1 200 licensed gas installers in Western Australia. I will be holding discussions with the Motor Trade Association about how to increase the number of licensed gas converters operating in the state. As a result of the change that was announced last week, it is forecast that this year in Western Australian more than 4 000 motor vehicles will be converted to LPG. That is a great boom for Western Australian families. It is this government that has led that charge. The debate about suffering at the hands of the Howard government and the interest rate rises that the federal government promised would never happen, and the promise of relief from the increase in fuel prices, which was delivered only after the Howard government decided to follow our lead - Several members interjected. Mr A.D. McRAE : That is absolutely right. I heard members of the opposition say that this program was introduced some time ago. That is true. Since October 2000, 11 000 cars in Western Australia have been converted from petrol to LPG. The overwhelming message from Western Australian families is that if we give them incentives and assistance, we are on the cusp of converting a substantial portion of the energy use in cars from petrol to gas. The real challenge for us is to ensure that we can maintain the number of licensed gas converting agencies, in the light of what will be a significant rise in demand, and that the prices charged for conversions are managed so that there is no increase in the price. I note some of the prices that are being quoted nationally. It has been suggested that conversions will cost $2 500. The reality in Western Australia is that the price for a gas conversion is between $1 800 and $3 000, depending on the model and age of the car. According to the Motor Trade Association, the trick to maintaining price and quality is to increase the number of licensed participants. I will be holding discussions with the Motor Trade Association to determine how we can go about doing that. The state government has been given an important additional task in light of the federal government’s belated move to join us. The administration of the subsidies should not require Western Australians to fill out one gas conversion subsidy form for a state subsidy and another one for a commonwealth subsidy. I will write to the commonwealth minister in the next week or so to offer to administer the subsidy through the licensing business unit of the Department for Planning and Infrastructure so that there is a single-stop shop for Western Australians.
I thank the member for Swan Hills for the question. Of course, as a result of the Carpenter Labor government’s announcement last week that it would double the subsidy for the conversion of vehicles to liquefied petroleum gas, we are at the front of a wave of debate across the country. It is very pleasing that the federal government has announced a new policy that will add $2 000 to that subsidy. The Premier talked about that a bit earlier. In Western Australia last year, 2 779 vehicles were converted from petrol to LP gas. Those conversions were carried out by 1 200 licensed gas installers in Western Australia. I will be holding discussions with the Motor Trade Association about how to increase the number of licensed gas converters operating in the state. As a result of the change that was announced last week, it is forecast that this year in Western Australian more than 4 000 motor vehicles will be converted to LPG. That is a great boom for Western Australian families. It is this government that has led that charge. The debate about suffering at the hands of the Howard government and the interest rate rises that the federal government promised would never happen, and the promise of relief from the increase in fuel prices, which was delivered only after the Howard government decided to follow our lead - Several members interjected. Mr A.D. McRAE : That is absolutely right. I heard members of the opposition say that this program was introduced some time ago. That is true. Since October 2000, 11 000 cars in Western Australia have been converted from petrol to LPG. The overwhelming message from Western Australian families is that if we give them incentives and assistance, we are on the cusp of converting a substantial portion of the energy use in cars from petrol to gas. The real challenge for us is to ensure that we can maintain the number of licensed gas converting agencies, in the light of what will be a significant rise in demand, and that the prices charged for conversions are managed so that there is no increase in the price. I note some of the prices that are being quoted nationally. It has been suggested that conversions will cost $2 500. The reality in Western Australia is that the price for a gas conversion is between $1 800 and $3 000, depending on the model and age of the car. According to the Motor Trade Association, the trick to maintaining price and quality is to increase the number of licensed participants. I will be holding discussions with the Motor Trade Association to determine how we can go about doing that. The state government has been given an important additional task in light of the federal government’s belated move to join us. The administration of the subsidies should not require Western Australians to fill out one gas conversion subsidy form for a state subsidy and another one for a commonwealth subsidy. I will write to the commonwealth minister in the next week or so to offer to administer the subsidy through the licensing business unit of the Department for Planning and Infrastructure so that there is a single-stop shop for Western Australians.
Several members interjected. Mr A.D. McRAE : That is absolutely right. I heard members of the opposition say that this program was introduced some time ago. That is true. Since October 2000, 11 000 cars in Western Australia have been converted from petrol to LPG. The overwhelming message from Western Australian families is that if we give them incentives and assistance, we are on the cusp of converting a substantial portion of the energy use in cars from petrol to gas. The real challenge for us is to ensure that we can maintain the number of licensed gas converting agencies, in the light of what will be a significant rise in demand, and that the prices charged for conversions are managed so that there is no increase in the price. I note some of the prices that are being quoted nationally. It has been suggested that conversions will cost $2 500. The reality in Western Australia is that the price for a gas conversion is between $1 800 and $3 000, depending on the model and age of the car. According to the Motor Trade Association, the trick to maintaining price and quality is to increase the number of licensed participants. I will be holding discussions with the Motor Trade Association to determine how we can go about doing that. The state government has been given an important additional task in light of the federal government’s belated move to join us. The administration of the subsidies should not require Western Australians to fill out one gas conversion subsidy form for a state subsidy and another one for a commonwealth subsidy. I will write to the commonwealth minister in the next week or so to offer to administer the subsidy through the licensing business unit of the Department for Planning and Infrastructure so that there is a single-stop shop for Western Australians.
Mr A.D. McRAE : That is absolutely right. I heard members of the opposition say that this program was introduced some time ago. That is true. Since October 2000, 11 000 cars in Western Australia have been converted from petrol to LPG. The overwhelming message from Western Australian families is that if we give them incentives and assistance, we are on the cusp of converting a substantial portion of the energy use in cars from petrol to gas. The real challenge for us is to ensure that we can maintain the number of licensed gas converting agencies, in the light of what will be a significant rise in demand, and that the prices charged for conversions are managed so that there is no increase in the price. I note some of the prices that are being quoted nationally. It has been suggested that conversions will cost $2 500. The reality in Western Australia is that the price for a gas conversion is between $1 800 and $3 000, depending on the model and age of the car. According to the Motor Trade Association, the trick to maintaining price and quality is to increase the number of licensed participants. I will be holding discussions with the Motor Trade Association to determine how we can go about doing that. The state government has been given an important additional task in light of the federal government’s belated move to join us. The administration of the subsidies should not require Western Australians to fill out one gas conversion subsidy form for a state subsidy and another one for a commonwealth subsidy. I will write to the commonwealth minister in the next week or so to offer to administer the subsidy through the licensing business unit of the Department for Planning and Infrastructure so that there is a single-stop shop for Western Australians.
The state government has been given an important additional task in light of the federal government’s belated move to join us. The administration of the subsidies should not require Western Australians to fill out one gas conversion subsidy form for a state subsidy and another one for a commonwealth subsidy. I will write to the commonwealth minister in the next week or so to offer to administer the subsidy through the licensing business unit of the Department for Planning and Infrastructure so that there is a single-stop shop for Western Australians.

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