Fed; Government's ethanol excise needs reviewing - Latham

AAP General News (Australia)
12-17-2003
Fed; Government's ethanol excise needs reviewing - Latham

PERTH, Dec 17 AAP - The federal government's excise on LPG was appropriate but the
level of excise on ethanol should be revisited, Opposition leader Mark Latham said today.

The federal government yesterday announced excise for LPG and ethanol would receive
a 50 per cent discount to be set at 12.5 cents per litre from July 1, 2012.

Under the changes, diesel and petrol excise will remain set at 38.143 cents per litre
but excise on alternative LPG and ethanol will start at 2.5 cents per litre from July
1, 2008 and will be phased in to the full 12.5 cents per litre from July 1, 2012.

Prime Minister John Howard said the excise changes were the first part of a series
of transport reforms, to be outlined in the new year.

"I think for LPG that (excise level) sounds appropriate but the ethanol stuff of course
is overshadowed by some of the scandals we had earlier this year ... ," Mr Latham told
ABC Radio.

"I think we need to have a look at that level of subsidy to see if its appropriate."

Mr Latham said the federal government's relationship with the ethanol industry also
needed to be examined.

In October it was revealed Manildra - Australia's major ethanol producer and a large
donor to the government - received 96.4 per cent of a federal ethanol subsidy.

"We're reviewing all the ethanol programs ... we're in the business of getting value
for money," Mr Latham said.

"Sure ethanol could be an important industry for Australia's future but at what cost?"

AAP hn/jv/bwl

KEYWORD: LPG LATHAM

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