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Forimmediaterelease10February2014

MEDIARELEASE

Axingrebatewouldkillinfantethanolindustry
ABUREAUCRATreportattackingAustraliasethanolindustryisanattackonfarmersandthenational economy,accordingtoFederalMemberforDawson,GeorgeChristensen. TheBureauofResourcesandEnergyEconomicsreport,leakedtothemediathisweek,claimsafuelexcise rebateonethanolhasproducednegligibleeconomic,environmentalandconsumerbenefits. Whentheethanolschemewasimplemented,itwasnotgoingtobeupforreviewuntil2021becausethe governmentrecogniseditwouldtakethatlongfortheindustrytobefullyestablished,MrChristensen said. Rippingtheschemeoutnowwouldbepullingtherugoutfromunderourfarmersandagribusinessesthat arestillintheirinfancyanditwouldrepresentarealmissedopportunityforbettereconomic, environmental,andhealthoutcomes. TheSarinaDistillery,inNorthQueensland,andamuchanticipatedethanolmillintheBurdekin (AustCane),wouldbeunderpressuretosurviveiftheethanolprogramwereremoved. Itwouldn'tbetheLiberalwaytoraisetaxonanAustralianindustryandtoincreasethecostoflivingby pushingupthepriceofthecheapestfuelalternativecurrentlyonofferatthousandsofservicestations. MrChristensen,whoseNorthQueenslandelectorateproducesmoresugarthananyotherinthecountry, saidthegovernmentneededtoretaintheethanolprogramandfullyembracetheindustrywithanational 10percentethanolmandate. TheNationalPartysplatformcallsforthe10percentmandatetobeinplacenextyearandforE20fuelsto berolledoutnationwideby2020. Wewanttopromoteafivepillareconomyandthatmeansgrowingmining,manufacturing,agriculture, educationandservices,MrChristensensaid. Miningisalreadyinthedoldrumsandmanufacturingisstrugglinginthecurrenteconomy.Ifweknockout theincentivesinagriculture,allwewillhaveleftisanationofpeopleteachingthemselvestosellinsurance policies. MrChristensensaidoneofthebiggestopportunitiesforthenationaleconomywasintheLiberalNational GovernmentsPolicyforDevelopingNorthernAustralia.

Wehavealltheland,water,andsunshineneededtoproducesugarcaneandethanolonagrandscaleso weshouldbedoingeverythingpossibletotakeadvantageofthoseassets,hesaid. Intermsofgrowingindustryinthenorth,sugarcaneandethanolisthelowhangingfruit. Whatweneedisbiggermarketsandstablemarketsandanational10percentethanolmandatewould provideastablemarketforcanefarmerswhoarestuckwithasugarmarketthatisvolatileatthebestof times. MrChristensensaidasecondarymarketforsugarcanewouldprovidemuchbetteroutcomesforfarmers whowereforcedtotakewhateverpricethemillsoffered. Anethanolmillwouldalsoallowfarmerstoreceivebenefitsbeyondsugarbecause,traditionally,farmers areonlypaidonthesugarderivedfromthecaneandnotpaidforthebenefitsderivedfrombyproducts, suchasbagasse,molasses,andethanol. EstablishmentofAustCane,aproposedethanolmillintheBurdekin,hasbeenblockedinplanningand environmentbutisexpectedtogetthegreenlightinthenearfuture. Withcommitmentsofmorethanonemilliontonnesayearfromlocalcanefarmers,theproposedmill wouldbeviableunderthecurrentexciserebate. MrChristensensaidinsteadofbureaucratstellingthegovernmenttoaxetherebate,theyshouldbe advocatinganationalethanolmandatesimilartomandatesinothercountries. BrazilledtheworldinethanolandtheyhavenowbeenovertakenbytheUSbutwehavetheopportunity tobeworldleadersinthistechnology,hesaid. Asarenewablefuel,ethanolisgreenhouseneutralbecausecarbondioxideproducedwhenburntis reabsorbedingrowingthecrop. Inaddition,thereducedemissionsofcarbonmonoxide,hydrocarbons,benzene,andtoluene,wouldlead toreductionsinchronicillnesseslikeasthma,bronchitis,anduvulitis. Thebureaucratsneedtounderstandthatthisisnotgivingoutmoneyforfree,thisissimplytreating ethanolasadifferentfuelandtaxingitdifferently. ENDS
Forfurtherinformation,contactDaveWestmanon0402411984

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