No more ethanol equals more foreign debt and more expensive petrol
1st May, 2008
Killing off the ethanol industry will not make a jot of difference to food prices and only increase Australia’s reliance on foreign fuel, the Leader of The Nationals, Warren Truss, said today.“Federal Labor has always had a blind hatred of the ethanol industry and reports that the Government plans to withdraw all support programs this year could well be the last straw for this safe and environmentally friendly fuel,” Mr Truss said.
“Reports today which have Labor linking ethanol production in Australia to worldwide food shortages are silly in the extreme.
“I’d like to remind the Prime Minister and his inexperienced and city-centric team that we are still feeling the effects of the worst drought in a century, which is having a major effect on grocery prices here. I also remind them that the global market price of rice has more than doubled recently, but ethanol is generally not made from rice.
“The Rudd Government has been floundering around trying to find a way of reducing petrol prices, including importing the failed Fuelwatch scheme from Western Australia and appointing a toothless Petrol Commissioner.
“The latest ploy to kill off ethanol is the most misplaced of all. The emerging ethanol industry is reducing our reliance on foreign fuel, cutting foreign debt and is producing jobs for Australians living in rural and regional communities.
“Most ethanol production in Australia is a by-product of agricultural production. Of course, no-one is going to use a food product to produce ethanol when they can get a better market price.
“This further attack on agriculture comes as the Rudd Government cuts funding to help farmers modernise their irrigation systems. To deal with climate change, Labor is also looking towards mass tree planting programs on land which should be used to produce more food.
“The Labor spin is activity it says will drive down petrol and grocery prices, but Labor’s actions are going to do the exact opposite.
“The latest attack on the ethanol industry is more dreadful policy from a Government that it is making it up as it goes along,” Mr Truss said.
