NSW Opposition Leader Peter Debnam today announced a $40 million package of measures to improve air quality across the state by promoting cleaner vehicles and cleaner fuels. 

"The most practical way of reducing the release of toxic greenhouse gases and improving air quality is to encourage the use of alternative fuels," said Mr Debnam, who drives a car powered by an 85% ethanol blend.

"Motorists who drive vehicles powered by LPG or a hybrid electric engine should be rewarded for helping the environment and reducing climate change," he said.

As part of our plan to get NSW back in front, a Debnam-led NSW Liberal/Nationals Government will commit $34 million to encourage the use of environmentally friendly cars by:

• Cutting the cost of registration for all LPG and hybrid electric vehicles by $50;

• Allowing LPG and hybrid electric cars to travel in transit lanes.

"We will cut the price of registration for the average small LPG and hybrid electric car by almost 25% and for businesses by 15%," he said.

"We will also reduce the travel times for drivers using environmentally-friendly cars on major roads, including Spit and Military Roads, Epping and Victoria Roads, Windsor Road, the Pacific Highway, the Great Western Highway and Anzac Parade.

The NSW Liberal/Nationals will also implement a $6 million Ethanol Action Plan, including:

• $5m for grants to assist existing service stations convert infrastructure to allow the sale of ethanol-blended fuel;

• $1m for a marketing plan in co-operation with the NRMA and environmental groups to raise public awareness of and confidence in ethanol-blended fuel;

• Mandatory use of E10 fuel in all possible state government vehicles; and,

• Mandating, if necessary, ethanol usage in NSW to 10% by 2011.

"Labor has failed on air quality and alternative fuels. In 2004, Labor scrapped a plan to buy more gas-powered buses and purchased diesel-only buses in its next order.

"Morris Iemma has also refused to seriously consider ethanol and alternative fuels.

"Hybrid electric cars use up to 50% less fuel than conventionally powered vehicles and cut exhaust pollution by up to 80%.

"LPG powered vehicles emit significantly fewer greenhouse gases and other pollutants than petrol equivalents by as much as 20%. E10 fuel delivers a 30% reduction in carbon monoxide.

"The NSW Health Department admitted in September that toxic smog contributes to the deaths of 1,400 people a year.

"Leadership is required from state government to encourage the take-up of environmentally-friendly vehicle technology and I will provide that leadership.

"We need practical and workable solutions to climate change – and that's what the NSW Liberal/Nationals are providing for the people of NSW.

"There are clear environmental and economic benefits from the increased use of ethanol, LPG and hybrid electric vehicles. These vehicles cut down the traditional reliance on polluting fossil fuels and help insulate the economy from the effects of rising world oil prices.

"Ethanol also provides another source of income for rural and regional areas.

"The Australian Medical Association, the NRMA, and the National Farmers Federation all back the increased use of ethanol.