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Australia’s New South Wales government introduces bill to broaden ethanol sales mandate

Australia's New South Wales state has introduced a bill into its parliament to extend an ethanol mandate across the region so that retailers sell E10 (petrol blended with up to 10% ethanol) for the first time.

Under the Biofuels Amendment Bill 2016, retailers must also provide sales reports on the volumes of ethanol sold.

Speaking about the Bill, NSW Minister for Innovation and Better Regulation, Victor Dominello, said: "Debate about the merits of ethanol-blended fuel is nothing new. Government intervention in a free market is never desirable. I understand why, philosophically, it creates unease among some members of this House, but we must recognise that we do not live in a free market utopia...

"The reality is that governments regularly intervene in the market to protect consumers against unchecked market forces.

"That is why we have agencies such as Fair Trading, the Australian Competition and Consumer Commission, the Australian Prudential Regulation Authority, the Energy and Water Ombudsman, and the State Insurance Regulation Authority, amongst many others.

"Let me be very clear: My focus is squarely on the consumer interest. I am unashamedly wearing my hat as Minister responsible for consumer affairs in pursuing these reforms."

'Competitive homegrown biofuels industry'

He stressed that it was important that E10 remained a "competitively priced product".

He added: "It is important that consumers be given a choice between El0, regular unleaded and premium fuels.

"It is important that we have more transparency in the market, including real-time prices available online, and transparency on the true cost of ethanol production and it is passed through to the bowser.

"It is important that we encourage a viable and competitive homegrown biofuels industry. This is what this bill seeks to do."

Criticism

The Sydney Morning Herald has reported that Peter Phelps, a member of the Liberal Party, has quit as government whip in the upper house over the introduction of the Bill.

According to the news channel, Phelps said: "I have on occasion had to haul my principles," he said. "But this bill which criminalises people for the purchasing decisions of their customers is such an egregious breach of the core values of the Liberal Party that I cannot support it."





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