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Monday, 9 December 2002
Page: 9872


Mr McMULLAN (2:40 PM) —My question is to the Treasurer and follows from his answer to the question from my colleague the member for Banks. Is the Treasurer aware that the Australian Competition and Consumer Commission advised the Senate on 21 November this year that use of petrol with more than 10 per cent ethanol could void motor vehicle warranties? Is the Treasurer also aware that the ACCC advised it was concerned there was no requirement for service stations to provide signs advising motorists of ethanol levels in petrol, which of course means that they cannot check whether they are breaching their warranties or not, because you will not set a standard to enable them to be advised?


The SPEAKER —The member for Fraser is aware that he is now falling outside the standing orders and will return to his question.


Mr McMULLAN —Treasurer, why have you failed to protect Australian motorists from the dangers of using petrol with above recommended levels of ethanol?


Mr COSTELLO (Treasurer) —I have a copy of the transcript of the Senate inquiry and I will read what Mr Cassidy said:

We spoke to various independent authorities. We also spoke to the various players in the industry and I have to say it was a very mixed story. People like the motor vehicle manufacturers, for argument's sake, said that they thought anything above 10 per cent was potentially a problem. But then there were others in the industry who pointed to overseas practice and who argued that you could certainly go up to 20 per cent.

Apparently the overseas practice is 20 per cent—


Mr McMullan —In Brazil!


The SPEAKER —The Treasurer has the call.


Mr COSTELLO —Mr Speaker, he asked me about the evidence and I am actually reading out the evidence. Unfortunately for him, he is not able to misrepresent it because we actually have it. When I read it out he starts disputing the evidence. The essence of your question is actually to support this evidence. That was the essence of the question. The evidence was that the motor car manufacturers think anything above 10 per cent is a problem. Others in the industry who rely on overseas practice argue that you can go to 20 per cent. Mr Cassidy went on to say:

Between 10 per cent and 20 per cent there was quite a deal of conflicting evidence.

So we have conflicting scientific evidence as to whether 10 per cent is the maximum or whether you can go to 20 per cent. No doubt that is argued by people on various scientific grounds. What is the government's position? The government's position is that Environment Australia, which is responsible for this area, is charged with looking at the scientific evidence and making a recommendation. I must confess I am not a scientific expert on whether or not a car can take 10 per cent or 20 per cent ethanol. This is beyond my ken. If I could resolve the scientific evidence, I would, but I cannot. Which is the appropriate body to resolve the scientific evidence? Environment Australia. What is happening? Environment Australia is making a recommendation. When Environment Australia makes a recommendation, the government presumably will accept or reject it, and the matter will be dealt with in that way. But for anybody to intervene and say that they know, without a proper evaluation of the scientific evidence, would not be right and it would not be a proper process.