FOR IMMEDIATE RELEASE 28-10-10

E10 Mandate Deferred

Below is the text of a letter received by the QHMC in response to our representation regarding the effects of the proposed 5% ethanol mandate for Queensland.

"The Queensland Government recently considered legislation to introduce an ethanol mandate and has decided to delay this measure for at least 12 months.

This decision is considered appropriate given the ongoing uncertainty in relation to domestic ethanol supply and proposed changes to the Commonwealth Government excise arrangements. The Queensland Government's intention in implementing an ethanol mandate was to consolidate the development of a local ethanol industry, based on first generation technologies, with a view to supporting an efficient transition to a second generation ethanol industry. Domestic ethanol supply has not expanded as expected making it likely an ethanol mandate would create demand for imported ethanol.

I acknowledge that industry has undertaken preparations to rollout increased ethanol blended fuel sales with the support of the Government. The Queensland Government will continue to work with industry to support the continued uptake of ethanol blended fuels.

Diversifying Queensland's transport fuel mix to include a greater share of renewable fuels like ethanol remains part of the Queensland Government's fuel security and climate change agenda.

If you require any further information Ms Michelle Hinckfuss, A/Director, Office of Clean Energy, Department of Employment, Economic Development and Innovation, will be pleased to assist you and can be contacted on telephone 3224 2485.

Yours sincerely

ANDREW FRASER Treasurer Minister for Employment and Economic Development

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Last modified: 10/10/11

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