(1)   For each of the financial years 2004-05 and 2005-06 to date, what amount has been expended on ethanol production subsidies.

(2)  

   For each company that has received a subsidy:

   (a)   under what program has the subsidy been paid;

   (b)   what was the amount of subsidy paid;

   (c)   what volume of subsidised ethanol has been produced;

   (d)   what feedstock has been used to produce the subsidised ethanol;

   (e)   where are the company’s ethanol production facilities located;

   (f)    has the subsidy resulted in increased production; if so, can this increased production be quantified; and

   (g)   how has the Government audited the subsidised production.

(1)  

(2)  

(a)   All companies have been paid under the Ethanol Production Grant Program.

(b)   Company                               Amount Paid

Manildra	$12,147,616
CSR	$1,736,094
Schumer (Rocky Point)	$485,819
Total	$14,369,529

(c)   Company                               Volume Produced

Manildra	31,847,564 L
CSR	4,551,540 L
Schumer (Rocky Point)	1,273,679 L
Total	37,672,782 L

(d)   Manildra produces ethanol from wheat starch. CSR and Schumer (Rocky Point) both produce ethanol from C Molasses.

(e)   Company                                               Location

Manildra	Bomaderry (NSW)
CSR	Sarina (QLD)
Schumer (Rocky Point)	Woongoolba (QLD)

(f)   No. Production of ethanol between 1 July 2005 and 31 December 2005 has increased by approximately 44 per cent to 15,005,485 litres when compared to the corresponding period in the 2004/05 financial year. However, ethanol production in the period 1 September 2002 to 30 June 2003 was 56,846,446 litres. Ethanol production in the 2003/04 and 2004/05 financial years was 28,532,250 litres and 22,667,297 litres respectively.

(g)   The Government has a number of procedures in place to protect itself from fraudulent claims. Each time a producer submits a claim they are contractually required to provide evidence that the ethanol has been produced in Australia from biomass feedstock, entered for home consumption and that fuel excise has been paid. In support of their application, producers must attach a copy of the Australian Taxation Office Excise Return form that deals with the entry into home consumption of the ethanol for which funding is being claimed and evidence of the electronic funds transfer for the Duty paid on the ethanol referred to in the Excise Return form. The Department of Industry, Tourism and Resources also receives Australian Taxation Office (ATO) statements from producers on the amount of excise paid on fuel ethanol. This information allows the Department to acquit the grants paid under the Ethanol Production Grant with ATO excise records. The funding agreement between the Commonwealth and the ethanol producers enables the Department to audit and inspect records pertaining to claims for the Ethanol Production Grant and the equipment and facilities used to produce the fuel ethanol at any time.