Qld ethanol mandate knocked back again

The Australian Lot Feeders’ Association (ALFA) has stated that the expert committee recommendation to not
proceed with an ethanol mandate in the state is a victory for common sense.

“The Queensland State Development, Infrastructure and Industry this week announced that the Qld ethanol
mandate bill not be passed.”

ALFA President Don Mackay stated “NSW remains the only Government in Australia which remains supportive
of ethanol mandates as other states and the Federal Government recognise the costs and risks outweigh any
purported benefit”.

ALFA has always taken an active stance in opposing ethanol mandates, and our concerns have been shared by a
plethora of disparate groups who joined an alliance to advocate against their implementation”.

“With the majority of ethanol in Australia derived from grain, ALFA has always been concerned that during low
grain production years, the artificial and inflexible demand created by mandates would inflate grain and hence
food prices.”

“Despite hundreds of millions of dollars worth of state and federal Government assistance and protection
towards the ethanol sector, it is clear that such policies have not only been ineffective but have resulted in
costs which have grossly outweighed the benefits.”

“This is readily demonstrated by the fact that 1) there are only 3 ethanol manufacturers in the country, 2)
ethanol comprises only 1 per cent of the total road transport fuel mix, 3) there is decreasing not increasing
demand for the product, and 4) the taxpayer cost for such policies have been large whilst the benefits have
been small and declining over time.”
“Several reports regarding the NSW mandate have been critical of the policy, including from the NSW Treasury
and the ACCC.”
“The US Government (long considered the precedent that Australia should follow regarding Government
biofuels policy) began removing its assistance and protection for its biofuels industry with the removal of tax
credits and import tariffs in December 2011.”
“No industry should have a Government imposed mandatory demand for its product, particularly when
consumers don’t want it. We call upon the Queensland Government to oppose the bill as recommended, Mr
Mackay concluded.”
For further information:
Don Mackay
President – ALFA
Ph: (02) 6734-4977
Mob: 0408-482-737
Dougal Gordon
CEO – ALFA
Ph: (02) 9290-3700
Mob: 0414-495-368

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