12. Hon MAURICE WILLIAMSON (National—Pakuranga) Link to this
to the Minister of Transport
Is the letter sent by Land Transport New Zealand to retailers last week, informing them they could no longer claim excise rebates for liquefied petroleum gas (LPG) sold for non-automotive purposes, evidence the Government is planning to introduce a new “barbecue tax”?
Hon ANNETTE KING (Minister of Transport) Link to this
No, the Government is not planning to introduce a “barbecue tax”.
Hon Dr Nick SmithMr Smith should listen carefully. I am advised that the letter related to the detection of what may be an anomaly in the rebate process for LPG sales dating back to 1992. [ Interruption] Members should listen to this. A review by PricewaterhouseCoopers is continuing to investigate the extent of the anomaly. The results of the review will be known in the next few weeks. No changes to current practice have been implemented.
Hon Maurice Williamson Link to this
If there was no intention for any changes to be implemented yet, why did the letter state: “These changes will apply to LPG sold by a wholesaler or retailer on or after 1 July 2006.”
The letter from Land Transport New Zealand was sent out to retailers, telling them what the law is. It was followed up by a second letter, stating that no action would be taken until the review is finished. It is what the law states that is important. That is what the review will show us.
Hon Maurice Williamson Link to this
Why did the initial letter, dated 16 June this year, state: “As a result, we are introducing some changes to the criteria for refund”—when the Minister just said there was no intention for any change—and go on to state that those changes will take effect from 1 July, which I understand is in 8 days’ time?
Hon Bill EnglishYes, contradicting the first one. The second letter stated there would be no changes until the review is finished. I will find out who has been caught out in a very short time.
Hon Maurice Williamson Link to this
Does the Minister intend to get a signal through to the Minister of Internal Affairs, Rick Barker—who I understand is snowed in somewhere in the South Island—so that he can pass on to all the concerned residents of the South Island, who are relying on gas canisters for their heating and cooking because they have been without power for so long, that they do not need to worry and a $2 tax will not be imposed on their barbecue canisters from next week?
Hon Maurice Williamson Link to this
Why did the Secretary for Transport, Dr Robin Dunlop, stop short of giving any assurance that there are no plans for the buyers of LPG for domestic use to pay fuel excise, and say he could not do that until the review was completed, hopefully by the end of July?
He could not do that because the review has not been completed. But the review is investigating a 1992 letter that was sent out by the Secretary for Transport at that time, which changed the process for refunds and does not appear to be in line with the law of the day. That is what is being looked at.
Hon Maurice Williamson Link to this
Can I take it from that answer that it has still not yet been ruled out that there may actually now be a “barbecue tax” of $2 imposed on each 9-kilogram cylinder of LPG gas sold to ordinary consumers?
I have no doubt that the member is aware that any change in the levy on LPG is a matter for the Minister of Customs. I have discussed that matter with the Minister of Customs, Nanaia Mahuta. She has no intention to make any changes to the amount of the current levy on LPG.
Hon Maurice Williamson Link to this
I seek leave to table two documents. The first document is a letter from Land Transport New Zealand dated 16 June, which states that that organisation will be introducing some changes.
Hon Maurice Williamson Link to this
The second document is a letter from Land Transport New Zealand dated 21 June, which states that that organisation has no intention of introducing any changes.