At a recent ethanol conference in Melbourne, Vaile said a Labor scare campaign in 2003 has seen the rest of the world taking up green fuel much faster than Australia.

He said biofuels could deliver significant environmental and economic outcomes if there was the appropriate level of commitment in the wholesale, retail and production sectors.

While Australia has seen movement in the last 12 months with increasing deployment and availability of E10 fuel, most biofuel blends are being sold by independent petrol retailers.

“We expect to see the oil majors do much more in helping the government to achieve its targets. Last year the growth that took place was delivered two-thirds by the independent side of the industry and only one-third by the majors,” Vaile said.

“We expect to see the majors (doing) much more of the heavy lifting and working with the government to achieve our targets of 350 million litres of biofuels by 2010.”

Also at the conference Vaile was questioned on a US study (previously reported by EMN), which said high ethanol blends of E85 (85% ethanol) could increase the rate of respiratory deaths by 40%. He gave no specifics but said the Federal Government had commissioned research looking at biofuel emissions in the Australian climate.

“There has been work done that has a positive outcome in cooler climates across the world but certainly we want to see and have evidence in Australia, and that work is being undertaken now and being paid for by the Commonwealth,” he said.

At the conference, 2007 Australian of the year Tim Flannery said Australia must ban fossil fuel imports by 2020 if it hopes to cut greenhouse emissions. Vaile was uncertain of the target.

“Well I’m aware of the comments that Professor Flannery made and given the size and the growth that’s taking place in the Australian economy that would have to be tested. I’m not sure whether that’s achievable or otherwise,” responded Vaile.