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Alternative Fuels

Volume 329: debated on Tuesday 13 April 1999

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16.

What steps he is taking to encourage the manufacture of compressed natural gas vehicles and the conversion of existing petrol and diesel vehicles to alternative fuels. [78831]

The Energy Saving Trust's powershift programme, funded by my Department, contributes towards the additional cost of purchasing gas and electric vehicles. In the recent Budget, my right hon. Friend the Chancellor reduced duty on compressed natural gas and liquefied petroleum gas by 29 per cent.—a strong incentive to convert to those fuels.

That was a good answer; we must all celebrate the 29 per cent. cut in fuel duty for gas vehicles in the Budget. However, is it not true that we will never get people to convert their vehicles until there are pumps in filling stations to allow them to fill up their tanks with compressed natural gas? What are the Government doing actively to encourage filling stations to put compressed natural gas pumps on their forecourts?

My hon. Friend is right; there is certainly a need for further improvements in the refuelling infrastructure. However, there are signs that fuel suppliers now have the confidence to invest significantly in gas refuelling facilities, and the recent Budget announcements should provide further impetus for their plans.