Biodiesel tax madness.

Submitted: Friday, Jul 21, 2006 at 10:41
ThreadID: 36025 Views:2661 Replies:8 FollowUps:8
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The Federal government has changed the tax arrangements for biodiesel so that it wont get the transport industry tax subsidy. (Fuel Tax Buill 2006) This is crazy/bad news for 4WD drivers as there is now a much reduced incentive to develop a biodiesel industry/distribution network in Australia. Would any other government in the world today survive passing a policy that reduces a countries mineral diesel alternatives? This policy should be laughed out of the statute books. Our opposition however hasn't raised a whimper. The press don't seem to have noticed.
Widespread biodiesel availabilty is probably the only brake we will have on syrocketing diesel costs. If we want to be able to keep our hobby going, I suggest we all write to the papers, get on talkback radio, write to the pollies etc and get this piece of lunacy rethought.
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Reply By: traveller2 - Friday, Jul 21, 2006 at 10:46

Friday, Jul 21, 2006 at 10:46
Would be for the same reason fuel prices go up and down at the whim of the oil companies and the govt does nothing.
The oil companies are in bed with the govt, pollies and oil companies are feathering their nest at our expense.
I have heard too that the oil companies are building bio plants (the one on the central coast nsw is apparently owned by Caltex) as when blended with dino diesel even in small amounts it gets the lubricity back up to pre no sulphur days.
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Reply By: cokeaddict - Friday, Jul 21, 2006 at 13:52

Friday, Jul 21, 2006 at 13:52
Fed Gov didnt change its mind....it stood firm from day 1 that it wont allow consessions for diodiesel. Thats why all the fuss is happening.
If u heard our treasurer talking to allan jones on 2GB a few weeks ago..he had NO answers to jones questions..in fact the treasurer looked like a stupid man in power without any idea about the facts.

And while im on it, it dont matter who makes the stuff, whoever sells it to US (the public) will keep the price just under that of toxic diesel that we use today. So what im trying to say is...

If Diesel sells for 1.55 P/L today, You will find that biodiesel will sell for approx 5 cents cheaper. It dont matter what the bouser price is , they will stay in touch with current prices...its a whirlpool industry for them all.

If i can geta copy of that interview with the treasurer...i will ask permission to post it here or just give the link and u can havea listen. Its the most embarrasing situation he has ever been put in by anyone. He was really pathetic with no logical views to future fuel in this country at all. He walked out of that interview a very angry man, knowing he sounded stupid and had no answers to the questions put to him.
Ange
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Follow Up By: Truckster (Vic) - Friday, Jul 21, 2006 at 13:59

Friday, Jul 21, 2006 at 13:59
thats because he IS a stupid man
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Follow Up By: Bill13 - Friday, Jul 21, 2006 at 16:17

Friday, Jul 21, 2006 at 16:17
Cokeaddict, I and many others would love to read a transcript or hear an audio of the interview between Alan Jones and our bumbleing git Costello. Hope you will post a link for it.
Bill
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Follow Up By: mfewster - Friday, Jul 21, 2006 at 16:53

Friday, Jul 21, 2006 at 16:53
Bill, I would also love to see that transcript if you can get it posted. I agree that the bio industry would keep its prices just below the imported stuff, however our balance of trade figures are already blowing out because of fuel imports. Local biodiesel would be of huge benefit to the overall economy. An enlightened (look, I admit that the idea of an "enlightened" guvvament is laughable) government might just think it was in the country's interest to actually exercise a bit more control over the price of an essential product if we actually produced the stuff here rather than being at the mercy of imports.
I am not sure that there hasn't been a change in gov. policy on this. The bio industry claims there has been a change. Note the following press release I found from Australian renewable Fuels.
"Australian Renewable Fuels (ARF) CEO Daryl Butcher claims the Government has broken its promise not to disadvantage the sector. Legislation taking effect in July 2006 will mean that the $A0.38-per-litre diesel rebate for commercial vehicles does not apply to biodiesel. Both ARF and the ANZ Bank now intend to focus their biodiesel-related investments overseas. Butcher says the law reform has already cost ARF a $A4.5m contract"

I think it is well worth our while pushing this into public consciousness. Some more embarrasing moments for Pete and John and Kim would help. I managed to get a letter published in today's Australian on the subject. Follow up to the Australian welcomed.
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Follow Up By: cokeaddict - Friday, Jul 21, 2006 at 18:37

Friday, Jul 21, 2006 at 18:37
Ok i did a search for it, aparantly from what i found out...that audio file has been removed by request of our treasurer (personally i think it was done cause he realised how stupid he sounded) BUT..dont dispear.....i send alan an email and requested a copy. I am sure he will some home sneak one out.
Stay tuned..i aint giving up just yet.
Ange.
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Follow Up By: Member - Bware (Tweed Valley) - Saturday, Jul 22, 2006 at 01:06

Saturday, Jul 22, 2006 at 01:06
Go hard Ange!
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Reply By: mfewster - Friday, Jul 21, 2006 at 16:54

Friday, Jul 21, 2006 at 16:54
Sorry, I addressed my reply to Bill. Should have gone to cokeaddict. But I liked Bill's letter too.
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Reply By: Barnesy - Friday, Jul 21, 2006 at 17:54

Friday, Jul 21, 2006 at 17:54
How many big oil companies are based in Australia? How many sleep with the libs and their neo-liberal policies?

I started a forum on this a few weeks ago mfewster when the legislation first went through the senate and generated good discussion. It seems like the only pollies who objected were the greens and barnaby joyce.

Every time the Libs (and opposition) suck up to big business like this it has negative consequences for local Ozzies.

Ozzie produced Biodiesel isn't a complete substitution for dinodiesel but it can certainly contribute and to effectively kill the Australian industry before it really gets going is stupid.

Every litre of diesel that we can produce ourselves, helping rural communities in the process, can only benefit the long term interests of Australia. It will mean less reliance on imports from unstable and war-torn areas of the world.

Maybe this is Johnny keeping his part of the deal with Bush for us assisting the Yanks in Iraq. Again another example of Johnny stuffing up, no WMD's and no cheap oil. How often can this bloke stuff up before he is relegated to the opposition?

Barnesy
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Follow Up By: cokeaddict - Friday, Jul 21, 2006 at 18:38

Friday, Jul 21, 2006 at 18:38
" Maybe this is Johnny keeping his part of the deal with Bush"

You are spot on there Barnesy. Lost of deals are done between the 2 leaders.
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Reply By: oldmagpie2 - Friday, Jul 21, 2006 at 22:15

Friday, Jul 21, 2006 at 22:15
i have just been reading about biodiesel on this forum & many other forums for the last three months & have come to the conclusion that in all aspects , being it environmental , alternate, cost, political,mechanical & anything else i cant think of at the moment, that to hell with the current government, which i have voted in for many years,i am going to produce my own . so bugger john howard & costello (minnie me) & while im at it , what about the new industrial reforms that are emerging, my old man fought in korea for this not to happen, so stuff 'em. this is the first political statement i have ever made in my life, but i have two sons that ive reared to do apprenticeships & respect their elders ie. employers , but when this crap starts theres got to be something done to stop it or the australia way of life will be lost for ever.cheers
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Reply By: Bilbo - Friday, Jul 21, 2006 at 22:41

Friday, Jul 21, 2006 at 22:41
Ahhh but - they are still considering assisting the ethanol industry aren't they!

And where do most of the most influential National Party members come from? Queensland!! Of course!

And where does ethanol come from - why sugar! Of course!

And what do they grow lots of on Queensland? Why, Sugar - well done Billy.

And what is one of Australia's main crops that can no longer get access to the sugar market in the USA - sugar!!

So make ethanol out of it.

And whose brother has a large amount of money tied up in ethanol production? None other than "Little Johnny Howard's" brother!!

Is this forming a picture at all??

Bilbo
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Reply By: Tim HJ61 (WA) - Friday, Jul 21, 2006 at 23:43

Friday, Jul 21, 2006 at 23:43
mfewster,

This went through parliament a while ago and there were postings in this forum leading up to the inevitable passing of this stupid legislation. There was also a section on Inside Business on 18/6/2006 Transcript Site Link that mentions the tax changes.

There is simply no point making any noise about this legislation now. This is what happens when we have one party in control of both houses of parliament. Over 50% of our population put this party in charge and this is what the rest of us are stuck with. You also need to know the ALP supported the legislation, with the Dems making using as much influence as possible but with limited numbers it just doesn't cut it. Transcripts: Site Link

The Senate committee (those things of the past that used to help keep the Government accountable but have been slashed) that this legislation was pushed through, had the Tax Office boffins saying quite clearly that they had not done modelling on these changes, it was simply Government policy.

At least they're not including canola users in their definitions of biodiesel. Small comfort.

The reality seems to me that in fact some of the BioD industry didn't complain too much either, like Darryl Butcher of ARF are saying (see Inside Business last line of above transcript) "We're really not here to save the planet, we are here to make money."
However I note others may not agree as their share price has plummeted since this legislation was introduced, which gives me personally even more grief :-(

With the PM saying water restrictions are a bad thing (despite us living in the driest continent), and that nuclear energy is just the absolute saviour to all our problems - what more can you expect than a head in the sand attitude to alternative fuel.

Tim
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Follow Up By: mfewster - Saturday, Jul 22, 2006 at 00:50

Saturday, Jul 22, 2006 at 00:50
I agree with most of what people have posted, and I certainly agree with Bilbo re the ethanol lobby. They are getting away with it because I don't think most of the public or press understand biodiesel. The public is however very concerned about fuel price rises. The biodiesel tax policy is so blatantly stupid that I think the policy can be changed if the public become aware of what has happened.
We can make a difference. We need to hammer the papers, talkback radio, letters to tthe Editor etc to ensure that the issue gets exposure. Any further ideas from readers of this thread as to how we get this being more widely talked about?

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Reply By: RedGibber - Saturday, Jul 22, 2006 at 20:28

Saturday, Jul 22, 2006 at 20:28
Cokeaddict is close to the mark...why would commercial B-diesel makers sell their product a lot lower than dinodiesel?? It's a business, and if they can make their cut by promoting something "better" at a (slightly) lower price, well good on 'em!!!

Pointless blaming the govt all the time...get with the game !!

Cheers
Red
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Follow Up By: mfewster - Saturday, Jul 22, 2006 at 21:14

Saturday, Jul 22, 2006 at 21:14
Red, there is every point in blaming the government. Bio is renewable. We can make it here so evry litre we make is one less we have to import. We can't control overseas prices but a government can control internal price margins on essentrial industries. Look at the caps they have put on natural gas distribution profits in companies such as Gasnet.
I see from today's news that we are about to lose a major ethanol manufacturing industry which is now going overseas..
Just saw a preview on the ABC which suggests that next week the 7.30 Report isgoing to start to raise questions about our crazy fuel policy.
When the government (of whichever party) starts to think enough voters are starting to look at the issue and that it might cost them an election, then we might get saner policies.
Write/ring media and your favourite polly.
I don't believe there is any other country in the world that is discouraging alternative fuel development.
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