Mrs DE-ANNE KELLY (3:00 PM) —My question is addressed to the Minister for Agriculture, Fisheries and Forestry. Would the minister outline to the House the assistance the federal government is providing for the construction in Brisbane of a mixing and distribution system for ethanol? How will this project help reduce Australia's greenhouse gas emissions and assist with the production of an alternative fuel source?

Mr TRUSS (Minister for Agriculture, Fisheries and Forestry) —I thank the honourable member for Dawson for her question and, in particular, acknowledge her work as chairman of the government sugar industry task force. Along with the members for Hinkler, Page, Fairfax and Leichhardt, she put a great deal of enthusiasm into promoting the production of ethanol from sugar. They will be aware that I commissioned last year a review of the economics of the production of ethanol. Yesterday, I was very pleased to announce a project which takes the distribution of ethanol, and particularly ethanol-petrol mixes, a major step forward. The federal government, under its greenhouse gas abatement program, has offered BP Australia $8.8 million towards a $90 million project to help ensure that ethanol mixed with petrol is available through service stations in Brisbane and other parts of the east coast network.

The production of ethanol has significant advantages for Australia. Firstly, over five years this project will enable Australia to save about 1.1 million tonnes of greenhouse gas emissions. Secondly, it makes our country a little less dependent upon OPEC and international oil prices and, thirdly, it has the potential to create significant jobs in rural and regional Australia as ethanol distilling establishments are provided and farmers gear up to the production of alternative fuels. It is certainly an industry with significant potential and, to have the support of one of the petrol majors, using its distribution network to supply petrol-ethanol mix, is certainly a major step forward for alternative energy production in Australia.

This of course will not be the first production of ethanol in Australia. The Manildra Group, in the electorate of the honourable member for Gilmore, are major suppliers of ethanol. They produce about 32 million litres a year at the present time and distribute some of that by way of petrol-ethanol mix. That example can be followed by the grain industries and the sugar industries to provide enormous potential for the production of ethanol and the use of alternative fuels in Australia. BP will be required to source its ethanol from Australian producers, so this is a significant boost to Australian industry. I would like to commend all of those who have been associated with this project, and I note that the sugar industry in particular is looking forward to cooperative ventures to produce the ethanol and to boost many rural and regional economies in the sugar belt of Queensland and northern New South Wales.