GOVERNMENT SHOULD SUPPORT BIOFUEL: NATS

The Nationals are calling on the Bracks Government to show practical support for the use of biofuels by using ethanol-blended fuel in its 8000 Government vehicles.

The Nationals' Energy Industries Spokesman Peter Hall has called for the action in a formal motion to Parliament because of the "significant environmental, health and regional economic development benefits that it brings."

"What I wanted to achieve in moving this resolution was to get the State Government to commit to demonstrating a real and practical commitment to the biofuel industry here in Victoria, by agreeing to run Victoria's 8000-strong public vehicle fleet on ethanol-blended fuels," Mr Hall said.

"I also encourage the government to consider ways in which our public transport can switch to biofuel use."

The Gippsland MP said there were many good reasons for using biofuels, including environmental benefits and important public health benefits.

"Significant regional development opportunities can be opened up through the greater use of biofuels, and their greater use provides us with an opportunity to reduce Australia's reliance on imported fossil fuels," Mr Hall said.

Mr Hall also told Parliament that the debate in regard to greenhouse gas needed to pay more heed to transport.

"In terms of greenhouse gas emission the focus has been and is predominantly on electricity production using brown coal and the greater need to use renewable energies," Mr Hall said.

"I would be the first to agree that renewable energies need to be part of our total energy use mix, and this motion is extremely consistent with that view. However, what has surprised me is that in the greater debate about climate change the definition of 'energy' seems not to include transport, yet transport involves the burning of fossil fuels, particularly oil but also gas.

"Like other forms of transport, public transport also involves the burning of fossil fuels in the form of oil and gas, and in Victoria the components of public transport are reliant on electricity generated predominantly by the burning of coal."

He added that South Australia's Royal Automobile Association believes carbon monoxide reductions can be as high as 32 per cent by the use of E10 ethanol blend blends of petrol, with a further 12 per cent reduction in hydrocarbons emitted from the exhausts of motor vehicles.

Mr Hall pointed out that the Australian Medical Association (AMA) also shares the view that a reduction in vehicle emissions would provide health benefits.

He said there was an opportunity to replace fuel and "help address the significant trade deficit we have in petroleum products."

Mr Hall pointed out that Australia was in a position to produce ethanol.

"Australia has the capability to produce primary products for not only food use but also fuel use, particularly as a lot of biofuel products - ethanol itself and some of the biodiesels - are produced from waste products and are secondary processors of the food industry," he said.

"Food is the primary product coming from agriculture but there is also the waste from that product -- the stubble from the grain and also the residues from sugarcane operations -- can be used to produce ethanol."

He admitted that initially the cost of production could seem high.

"However, from my research I understand that Brazil has got it down to something like US$25 a barrel, which compares favourably given current world oil prices," he said.

"There is a great opportunity here for Australia's producers to grow the necessary feedstock and create an additional market for their products. That would certainly be welcomed by the agricultural industry in Australia. There is also an opportunity for ethanol production plants to be established in regional Victoria. Those opportunities should not be ignored."

Mr Hall pointed out that research by the Victorian Farmers Federation showed that in America it is common to use 90 per cent ethanol blends, while in Brazil they use 95.5 per cent ethanol blends.

"The industry (in Australia) needs a kick-start, which is where the government can help - by encouraging the expansion of a distribution system and by providing a government vehicle fleet customer base for ethanol-blended fuels."

Media contact: Peter Hall's office (03) 5174 7066