An unlikely alliance, comprising service stations, social and community services, fuel distributors, stockfeed manufacturers and feedlotters, has been formed to oppose the increase in the NSW ethanol mandate from 2pc to 10pc in July 2011.
The alliance collectively believes that the NSW Biofuel (Ethanol Content) Amendment Bill 2009 will not only risk jobs and industries in rural areas, but will lead to increased fuel, grain and food prices for negligible fuel security, environmental and regional development benefit.
The alliance says it represents the very sectors of the economy that the NSW Government argues will benefit from the mandate - consumers, service stations and farmers.
The alliance is made up of Service Station Australia Ltd, Council of Social Services to NSW, Australasian Convenience and Petroleum Marketing Association, Australian Lot Feeders’ Association, Australian Pork Limited, Stock Feed Manufacturers’ Council of Australia, Australian Dairy Farmers, Australian Chicken Meat Federation and Australian Egg Corporation Limited.
The group says the only jobs created will be for the Government assisted monopoly ethanol supplier.
From a fuel perspective, the alliance is concerned the current supply arrangements will not be able to meet the mandate supply targets.
The alliance is also critical of continuing NSW Government statements that consumers are financially better off - it claims the 2-3 cent discount at the bowser does not offset ethanol's poorer fuel economy.
And it says the 10pc ethanol mandate will increase grain prices above world parity levels given the reduced supply available after the Government ethanol targets are met.
The group also argues the mandate will increase food prices, citing analysis from the World Bank, International Monetary Fund, and the OECD which says that Government biofuel support and protection policies were to blame for the majority of the 140pc increase in global food prices between 2002 and 2008.
Email a friend