PM to increase Government backing for biofuel use \PRIME Minister John Howard is expected to boost Federal Government support for the biofuels industry in a speech to the Committee for the Economic Development of Australia today.
The boost will come as part of the Government's response to high oil prices. A greater commitment will boost production of ethanol fuels. It will also boost the nation's burgeoning biodiesel industry, which converts vegetable oils and waste products into a diesel substitute. The Government wants the nation's transport fleet to be using 350 megalitres of biofuels by 2010. Tax incentives are in place, but there is nothing to force this to happen. A greater commitment may see a higher target set with a mechanism to ensure it is met.
Mr Howard will also reconfirm the Government's commitment to using low emissions technology to deal with greenhouse gas emissions rather than introducing emissions trading or a carbon tax. That means Australia does not plan to do an about-face on greenhouse policy and to join the Kyoto system any time soon.
Some states, including Victoria, want a state-based emissions trading system. It appears that a state-based approach will struggle to get up because the Prime Minister is believed to have discussed the issue with Queensland Premier Peter Beattie at last week's Council of Australian Governments conference.
Mr Beattie told Mr Howard that Queensland would not support an emissions trading scheme. The state has a large metal smelting industry that fears emissions trading will boost power prices to the point that it becomes uncompetitive.
Queensland is committed to supplying 13 per cent of its power needs from gas-fired power stations. But, it has built two coal plants in recent years with another scheduled to follow. Its coal-fired power stations are the country's cleanest because many are new and use energy efficient black coal.