The Chippery: Commentary on Australian politics

Thursday, June 15, 2006

Proposed Fuel Tax Bill limits uptake of alternative fuels

The federal government is introducing a fuel tax bill that has incentives on fuels the wrong way around. Instead of encouraging alternative fuels, such as bio-fuels, it is reducing the incentives for them. This will increase the cost of bio fuels and other alternative engery sources and have the duel negative effects of promoting the continued polution of our world through fossule fuel usage, and of harming the already struggling growth of the Australian alternative fuel industry. It is also a hit on Australian farmers who produce the raw products for our bio-fuels. As Senator Lyn Allison remarks:
"It makes no sense to cripple this renewable fuel industry at a time when Australia faces higher and higher oil imports. Australia is a backwater in promoting alternative fuels and this is either a very clumsy mistake or another sop to the big oil companies."

Bad all round it seems - unless you are an oil company.

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