[Greens-Media] Motorists face 8c hike without environmental or jobs gain

[John Kaye]

Motorists face 8c hike without environmental or jobs gain

Media release: 2 December 2015

Major party campaign donor Manildra has been busy lobbying the NSW state
government with what might be devastating effects for motorists and small
businesses, according to Greens NSW MP John Kaye.

('Warning of 8c hike in petrol under new laws', Sydney Morning herald, 2
December, p. 3, http://j.mp/smh151202Eth)

The Baird government is considering renewing the enforcement of its 6
percent ethanol mandate, despite warnings from agencies like Australian
Bureau of Resource and Energy Economics (http://j.mp/BREE-ethanol) of very
small or no employment and environmental benefits from using blended fuels.

Manildra is the monopoly manufacturer of ethanol in NSW. Its donations to
the three major parties exceed $4.3 million since 1998. Between 1 July 2010
and 30 June 2014, the NSW ethanol monopoly gave more than $532,000 to the
Liberals around Australia, $395,000 to the Nationals and $414,000 to Labor.

In the period 1 September 2014 to 30 September 2015, Manildra met with nine
ministers in 20 separate events, including:
¨    One meeting with Premier Baird (jointly with Energy Minister Anthony
Roberts),
¨    six meetings with Deputy Premier Troy Grant,
¨    six with Energy Minister Anthony Roberts,
¨    three with Innovation and Better Regulation Minister Victor Dominello,
and
¨    one site visit to the plant with Minister for the Illawarra John Ajaka


Greens NSW MP John Kaye said: "This is the victory of the millions of
dollars of Manildra's donations and the gold-standard access to ministers
they bought. The losers are motorists, small businesses in the petrol
industry and community confidence in sound environmental policy.

"Motorists and small businesses are being shackled to the profits of a
major donor in the name of claimed environmental and employment benefits
that don't exist.

"Not a single economic policy agency that the Liberals and Nationals take
seriously endorses strong arming motorists into using ethanol, yet that is
exactly what millions of dollars of donations has the Baird government
lining up to do.

"Whatever slight environmental benefits might be achieved are dwarfed by
the economic costs to motorists, the transport industry and in the long run
the entire economy.

"The only winner is monopoly ethanol producer Manildra and its ability to
leverage millions of dollars of donations into a policy outcome that
benefits no one but its own corporate self-interest.

"Imposing additional costs on motorists might be justified if there were
effective environmental or employment benefits. However, it's a very bad
idea to punish motorists when ethanol delivers only marginal greenhouse and
urban air quality gains," Dr Kaye said.

For more information: John Kaye 0407 195 455


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John Kaye
Greens NSW MP
phone: 0407 195 455
web: www.john.nsw.greens.org.au
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