NSW: Fuel companies face mandatory ethanol quotas

AAP General News (Australia)
02-14-2007
NSW: Fuel companies face mandatory ethanol quotas

By Peter Jean and Drew Cratchley

SYDNEY, Feb 14 AAP - Petrol companies in NSW will be forced to add ethanol to fuel,
regardless of who wins the March 24 state election.

NSW Premier Morris Iemma today set a September deadline for two per cent ethanol content
in fuel supplied by wholesalers to petrol stations if his Labor government is re-elected.

"If re-elected, I will mandate from September this year a minimum of two per cent ethanol
be blended into the total volume of petrol sold in NSW as a first step towards 10 per
cent ethanol content by 2011," Mr Iemma said.

The coalition has previously announced it would expand ethanol use in fuel to 10 per
cent by 2011 and introduce grants to assist service stations to upgrade equipment to dispense
ethanol fuel blends.

Mr Iemma said mandating the addition of ethanol to petrol would lead to a drop in greenhouse
gas emissions and create jobs in the ethanol production industry.

The government would publish figures on whether wholesalers are meeting the new target
before considering if penalties should be introduced for non-compliance.

Opposition environment spokesman Michael Richardson said the government should provide
service stations with financial assistance to convert equipment for ethanol fuel blends.

"If the premier is going to adopt our policy on the eve of the election, he should
take all our proposals on board," Mr Richardson said.

Australian Biofuels Association executive director Bob Gordon said he was pleased both
sides of NSW politics supported the use of ethanol fuel blends in vehicles.

"What is particularly welcome in NSW is both the government and the opposition are
fully behind bio-fuels use," Mr Gordon said.

Questioned today about Labor's election campaign launch on Sunday, Mr Iemma denied
he was trying to publicly distance himself from former premier Bob Carr by failing to
invite him to the event.

Guests at the launch will include Mr Iemma's family, friends, leaders from his local
community in southwestern Sydney and hospital staff he worked with as health minister.

Mr Iemma said Mr Carr had been Labor's most successful leader and he and other party
luminaries would be invited to other campaign events.

"He (Mr Carr) has been the most successful Labor leader - a man that I respect enormously,"

Mr Iemma said.

He said federal Labor Leader Kevin Rudd would play a role in Labor's state election campaign.

"I've already done a number of things with Kevin. He's off to a good start and I'm
happy to participate with Kevin," Mr Iemma said.

Opposition Leader Peter Debnam was today preparing behind closed doors for Friday night's
televised election debate against Mr Iemma.

AAP pj/was/it/cdh

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