In the Senate during debate on the Fuel Tax Bill 2006, the Leader of The Nationals in the Senate, Ron Boswell, said there were millions of dollars of investment in biofuels in Australia waiting for an indication from the Government that it is serious about biofuels. “The Government’s rhetoric on biofuels does not match the reality of the situation,” he said. “Investors are lining up to back the industry with the likes of Bill Gates, Richard Branson, and in Australia, Transfield, Colonial, and Babcock & Brown – all with interests in potential biofuel production. “We need to send them the right signals that we are committed to the development of this industry. “I have long been a strong supporter of a strong and vibrant biofuel industry for this nation and I am keen for Australia to ride the biofuel wave rather than being left behind. “There is no doubt about it. With the crisis in crude oil we are currently facing, both in price and in supply, part of the solution lies in boosting biofuel uptake and encouraging greater biofuel production. “Production is planned, has been costed and in many cases financed, but it is not happening. “There have been no new ethanol plants built in Australia since the 1990s. Ten years ago, Australia had three ethanol producers. For all the Government’s support for the industry, there are still only three ethanol producers. “These producers have surplus product in tanks right now, waiting for a buyer.  Ethanol that could reduce the cost of petrol by 3 to 4 cents a litre is being stored, because fuel companies don’t want to buy it.  “Australian producers at the moment have the capacity to supply more than 100 million litres of ethanol. Currently petrol retailers, mostly independents, are buying about 30 million litres. Granted, it is more than this time last year, but this is really just catch up and less than half the ethanol that was being used in Australia in 2002 when the Labor Party engaged in political scaremongering at the expense of an emerging industry. “A small number of biodiesel production facilities are operating in Australia. These producers market some of their product directly to large diesel fleets so have been able to avoid the reticence of the oil majors. However, these producers are now wondering whether the off-road market through the application of the tax credits scheme will be available to them, without tax rebates. “I am committed to this industry and committed to monitoring the impact of this legislation.” Senator Boswell said the response from the oil companies to the Prime Minister’s voluntary Industry Action Plan process (announced six months ago) has been slow and laboured with very few new contracts announced. “There is certainly no indication that the targets nominated by the oil companies themselves will be met,” he said. “As a Government, we say we are committed to biofuels but I say we have more to do.” ENDS Media Contact - 07 3001 8150