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Readers' Views The article in the last edition of Motoring Directions that generated the most comment from readers was on ethanol. Considering the level of public and political debate about the subject that was not all that surprising. While there was a mix of comments on the subject, the two that took a contrary view to that of the article came from those close to the ethanol industry. The general manager of CSR Distilleries, Rob McGregor, took Motoring Directions to task on a range of issues. He argued that – “Ethanol as a Renewable Fuel offers benefits to Australia – · It creates jobs in rural and regional Australia; · It improves energy security with alternative fuel from local production; · Cleaner burning reduces emissions of CO and Hydrocarbons; · It reduces Greenhouse gas emissions with fuels from renewable resources; · It adds value to agriculture; and · It improves the balance of payments by reducing imports.” Bill Wells from WEI Pty Ltd, Sarina, Queensland accused Motoring Directions of doing a “hatchet job on ethanol”. Mr. Wells also rejected suggestions that the ethanol program in Brazil had been a failure, not a view shared by the Commonwealth Treasury. In the report referred to in this edition’s article on ethanol, Treasury notes that the Brazilian model is often cited as a model for sugar industry / ethanol development. Treasury goes on to say – “We consider this policy is likely to have resulted in a significant misallocation of resources within the Brazilian economy, with substantial fiscal costs and reduced Brazil’s economic performance. In general, Treasury cautions against the adoption of developing country industry assistance and energy security policies that have been proven to hinder economic growth.” As is often the case, events have overtaken the arguments with the Commonwealth recently deciding to place a 10% maximum limit on ethanol content, insist on labelling and reject arguments for mandating. The decision is examined in this edition of Motoring directions in the article The Ethanol Outcome. Comments on articles in this edition of Motoring Directions can be lodged via the link below.
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