Dear Editor,

The Federal Government is proposing to cut the so called “ethanol subsidy”.

The overseas oil industry pays one tax, at the point of production, which is 6c per litre. The ethanol industry is taxed at the point

of production (40% tax) and again at the point of sale (at the bowser). So this so called “ethanol subsidy” evens the playing field, ever so slightly.

And why should Australian producers be taxed twice, whilst their Middle Eastern oil producer counterparts are taxed only once?

Ethanol production reduces our reliance on expensive overseas oil and provides for cheaper fuel for Australians. Currently, we send

$19 billion every year to Middle Eastern oil producers which we do not have to send them could be spent here on home soil.

Our oil refineries are closing at the rate of one in every two years, with only four remaining. Under the Federal Government’s proposal,

our ethanol industry will also disappear and Australia will be unable to produce a litre of fuel.

Every country on Earth, other than the Middle East and Australia, has moved to ethanol because it lowers emissions and provides

significant health benefits.

Our sugar industry, our cattle industry and our grain industry would be fixed up, on the experience of what has happened in other countries,

if we had ethanol.

We can also turn the waste from our sugar mills into ethanol and electricity producers, guaranteeing long term market prices for growers and cheaper electricity for Australians.

Australia will not be able to produce a litre of petrol. Look at our Australian flag; do we want this for our country?

Kind regards,

Hon Bob Katter MP

Federal Member for Kennedy