Bio-fuels (letter)by Robert BomNews Weekly
, September 27, 2008
The federal Minister for Agriculture, Mr Tony Burke, has indicated that ethanol from sugar-cane will be part of the Rudd Government's liquid fuels strategy. He has had two meetings with the Sugar Industry Reform Committee, and more have been scheduled.
Clear policy is yet to be formulated. As a lot of government involvement will be required, they will be in a good position to establish a structured cost and pricing system for bio-fuels.
Capping prices cuts the nexus between the international oil market and locally produced bio-fuels. It can prevent price speculation, which is one of the more severe causes for peaks and troughs in oil supplies to the market.
It also gives the government control over market prices for the benefit of consumers, growers, refineries and suppliers.Robert Bom,