Josh Frydenberg (Kooyong, Liberal Party, Minister for the Environment and Energy) Share this | Hansard source

I thank the honourable member for Kennedy for his question. Remember how the last time I got a question from him I burst out in laughter and he left the chamber. But I do thank him for those compliments without passing judgement on my esteemed former colleagues.

I know how passionate the member for Kennedy is about the biofuel industry. Indeed, he introduced into this parliament in February this year a piece of legislation wanting to see a national mandate of five per cent by 2019 and 10 per cent by 2022. We know that in Queensland and in New South Wales there are mandates. In Queensland, it is three per cent and in New South Wales it is six per cent.

The Commonwealth's position on the biofuels industry—which we support—which makes up about one per cent of the overall energy mix today, is that we do not support mandates, because of the impact that that may have on innovation and customer choice. But we do support the biofuels industry in many other ways. We have spent some $1 billion over the last 10 years. We have done that through a fuels scheme and we have done that through a grants scheme. But our focus from 15 July has been on the excise system, looking at the energy content. Under the transitional arrangements, the excise on ethanol and biodiesel is now about 2.6c per litre, or 6.6 per cent of that of petrol and diesel. By July 2020 and 2030, excise on ethanol and biodiesel will respectively be 33 per cent and 50 per cent of that of petrol and diesel.

I know the member for Kennedy is concerned about energy security. I know that he wants a lower emissions future and I know that he has pointed to the spare capacity in places like Dalby, Nowra and Sarina. So I confirm for the member for Kennedy that the coalition is absolutely committed to the biofuels industry. We are helping it through the excise system. We do not support the mandates which are currently in existence in New South Wales and Queensland.

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