House debates

Thursday, 18 June 2009

Appropriation Bill (No. 1) 2009-2010

Consideration in Detail

10:31 am

Photo of Lindsay TannerLindsay Tanner (Melbourne, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

Any change in arrangements of this kind may lead to behavioural effects, but it may also lead to, rather than a reduction in take-up or a reduction in employment in the industry that is involved in the process, a moderation of what otherwise would have been a continuing increase in take-up and the involvement of a proportion of resources in the economy in conducting that activity. So I would not speculate on what the impact of the changes to this arrangement may be. I would point out that a very substantial subsidy is still going to be in place for the installation of LPG systems in existing vehicles, and the government believes that that will continue to be a very significant incentive for people to make the changeover. The other factor that makes it very difficult to project into the future on those things is, of course, the relative prices of different fuels, which means that over time there are other factors in play, not just the subsidy, which will influence the pattern of changeover—and, indeed, the wider state of the economy, of course, has an influence that will impact on these things.

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