It means that car manufacturers will be urged to look at developing more fuel-efficient and quieter vehicles. Grants will be available to promote cleaner, more efficient cars and buses and to reduce the price of hybrid petrol and electric cars such as the Honda Insight and Toyota Prius. The Powershift programme pays for a reduction of pounds 1,000 in the price of the Prius hybrid car from pounds 16,495 to pounds 15,495. Mr Prescott has earmarked pounds 30 million to support the conversion or purchase of about 35,000 gas and electric vehicles from next year to 2004 under the Powershift programme, run by the Energy Saving Trust. Using LPG in vehicles creates lower emissions of particulates and nitrogen oxides and 10 per cent less carbon dioxide.
Gas engines are also quieter.
Programme set up earlier this year to convert buses and taxis in highly polluted areas to cleaner fuels. About pounds 9 million will be spent promoting the take-up by the public of hydrogen fuel cell and hybrid vehicles. Jonathan Murray, the head of transport at the Energy Saving Trust, said the aim was to concentrate initially on converting private cars to run on LPG, which is now available from 500 stations around Britain at about 45p a litre. He said the trust hoped to bring the price of conversion to LPG down to pounds 500. Under the scheme for cars, grants of 75 per cent will be available to bridge the difference between the price of conventional and electric vehicles.