§ Mr. MaclennanTo ask the Secretary of State for Scotland if she will undertake a study of the costs and benefits of large scale conversion from petrol to liquid petroleum gas in remote regions; and if she will make a statement. [149337]
§ Mr. FoulkesLiquid petroleum gas is a cleaner fuel that has significant environmental benefits over the use of petrol and diesel. It is for this reason that my right hon. Friend the Chancellor of the Exchequer at the last Budget held duty on road fuel gases to 15p per kilogram. The extension of the use of liquid petroleum gas by motorists in remote areas can also help address higher fuel costs faced in remote parts of Scotland caused by problems of low turnover of fuel sales and lack of competition.
Responsibility in Scotland for the Powershift scheme, which provides grants for the purchase and conversion of vehicles to alternative fuels including LPG, and for the Rural Transport Fund, which provides grants for the installation of LPG tanks in rural petrol stations, lies with the Scottish Executive. From the next financial year the Scottish Executive will provide £ 990,000 per year for Powershift. Measures to promote LPG supplies in rural areas are funded from the Scottish Executive Rural Transport Fund. Further details of that funding are expected soon. I understand that the Scottish Executive has no plans at this stage to carry out a cost-benefit analysis of large-scale conversion to LPG in remote areas.