Lyn Allison (Victoria, Australian Democrats) Share this | Hansard source

It is really disappointing that the Labor Party cannot see its way to supporting these amendments. I wonder whether we could not all share in the advice that Treasury has provided to the ALP to make it so confident that this will not damage the biofuels industry. Perhaps that advice can be forwarded to us.

I want to pick up on the point that I raised earlier about the waste oil recycling. Parliamentary Secretary, I do not think you were able to answer some of the questions I raised. I came across part of the submission from the Australian Oil Recyclers Association. I will read this to you and get your response. They say in their submission:

Since 2004 Oil recyclers reported to the Treasury and ATO via individual written submissions... and oil recycler members of the Oil Stewardship Advisory Council advising that the removal of the $0.07557 excise on new burner fuel would make recycled product less competitive in the long term, not the relatively short time of three years on a reducing basis—

as was said to be the case by Treasury. The submission goes on to say:

What is worrisome, is that some members have reported the loss of recycled oil sales to customers who will change to burner fuel gas which does not attract excise because they do not want to finance the cost of the $0.38143 while they wait for a Tax Credit on their BAS.

Of course, gas does not attract that excise, as I said. So there are two reasons that the waste oil recyclers will be disadvantaged and be likely to lose markets for those 200 million litres. Are you now able to give us some advice on the removal of the $0.07557 excise on new burner fuel and how that will affect the waste oil industry? Could you also advise whether you consulted with that sector? We know that you did not consult with the biofuels sector, but did you consult with that sector?