Beattie’s gripe comes with from page 13 of the policy strategy which touches on alternative fuels with the government stating that it "will not mandate the use of these fuels."
Following the lack of support the sugar industry found in the up-coming free trade agreement with the US, Beattie now feels that the Nationals and Liberals are refusing to throw a lifeline to the industry.
The Federal document continues: "Growth of these fuels is coming off a very low base, and government policy must necessarily focus on the role of petrol and diesel in meeting future demand for transport fuels, and achieving environmental objectives."
The State Government cannot issue a state mandate as this would inhibit free trade within Australia. Putting interstate producers at a disadvantage with any attempt to mandate ethanol content in fuel and prevent interstate importation breaches Section 92 of the Constitution.
The Queensland gripe is spurred by the fact that if 'mandating' actually discriminates against producers from outside Queensland it remains unconstitutional, yet if interstate imports are not discriminated against the policy will be ineffective in terms of providing a benefit to the Queensland sugar industry - it will simply suck in interstate production.
Existing ethanol producers would have a guaranteed market in Queensland, making it difficult for a new industry to get up and running.
However Premier Beattie said a Federal mandate would create a market five times bigger, weakening the effect of the existing producers and giving a Queensland industry the best chance of succeeding.
Either way someone will miss out and the Queenslanders are willing to fight for it.
In State Parliament this morning Beattie said Federal Resources Minister Ian Macfarlane and the Commonwealth were not listening to a groundswell of support for an ethanol industry.
"The Industry Minister, Ian MacFarlane, who is a former president of Queensland Graingrowers, is reported (today's The Australian) as saying that a mandate would raise petrol prices."
Macfarlane is reported to have said petrol prices would rise by 4c a litre if all petrol sold in Australia was required to contain 10% ethanol.
Beattie said that Macfarlane's comments not only further hurt a battling industry, but contradict the Coalition's own 2001 Putting Australia's First Election policy.
”That election policy highlighted the benefits for regional Australia from biofuels and also stated that there would be "no impact on fuel prices".
"Ethanol needs an indefinite extension of the fuel excise exemption - which only the Federal Government can give.
