$2000 LPG subsidy could be scrapped
Labor considers ending Howard government's "successful" LPG conversion subsidyThe former Howard government's $2000 LPG conversion subsidy appears likely to be scrapped by the federal government.
The ongoing feasibility of the $670 million program was examined by the government's Expenditure Review Committee (ERC) at its recent meeting, News Limited reports.
The ERC decided last Friday to end the scheme, well before its scheduled conclusion in June 2014 for a potential saving of about $400 million.
The LPG conversion subsidy has been taken up by at least 120,000 motorists.
The fate of the subsidy, which has already sparked back room debate, will be decided when Prime Minister Kevin Rudd returns to Australia.
Energy Minister Martin Ferguson has so far argued the subsidy should be maintained, News Limited reports.
Chief executive of the LPG Australia Stephen Woodward said long-haul commuters who had switched to LPG were saving between $150 to $200 per month in fuel bills.
"The scheme is more successful than anyone expected," he said.
In its election campaign Labor promised $8 billion in budget cuts.
Source: AAP 2008
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