Katter on Ethanol: Australia taking advice from people that can’t shoot straight

12 February 2014: KAP Leader and Federal Member for Kennedy Bob Katter has criticised the Federal Government, for the proposal to axe a $100 million subsidy for ethanol production, essentially signing the death warrant of the Australian ethanol industry.

“Every country on earth has mandated ethanol with the exception of the oil producing countries, Africa & Australia.

“All petrol in the United states has at least 10% ethanol blend in the product and there are approximately 250 million cars in the US running on ethanol blended fuel.”

“The only country that does not insist on having clean fuel is Australia,” said Mr Katter.

Mr Katter has attacked the notion that ethanol is given a free-kick stating, “there are reports that the ethanol industry receives this enormous subsidy, but this so called “subsidy” is practically non-existent, as Australian ethanol producers are taxed double.”

“Ethanol producers are taxed nearly 40 % at the point of production. Then they are taxed a second time, at the point of sale.

“So we have certain imbeciles that are advocating that ethanol producers should pay two sets of tax.

“What conceivable hope does the ethanol industry in Australia have of staying alive in the marketplace when the ethanol industry is hit with nearly a 100% tax rate?

“On the other hand, petrol pays its tax at the point of sale. At the point of production it pays about 6 cents a litre on average that they pay at the point of production.

“So petrol pays 6 cents a litre and the Ethanol industry pays 40 cents in the dollar?”

“This is an issue of fairness and a level playing field.

“Our country has paid dearly, for the advice coming from those people that can’t even shoot straight,” Mr Katter said.

Benefits of ethanol including cleaner cities with less CO2 emissions, greater agriculture diversification, jobs for rural Australia, fuel independence and cheaper fuel at the bowser for all Australians.

“I can tell you there are 23 reports that have been done in America on ethanol and they range between 23% reduction in CO2 and 29% reduction in CO2.

“The sugar industry, grains industry and the cattle industry cannot survive without ethanol. There is such an advantage that their competitors have over our Australian producers,” Mr Katter said.

ENDS

For information on Bob Katter’s role in the 43rd Parliament click here: http://www.bobkatter.com.au/your-member/43rd-parliament-a-retrospective.html