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Heat turned up on oil majors over ethanol.

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Joanna Gash Member for Gilmore

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Member for Gilmore Joanna Gash said has told the Prime Minister she will keep a very close eye on the actions of the country major petrol suppliers in the wake of a positive announcement by the Australian Government on biofuels.

"I have spoken to the Prime Minister and he knows exactly where I stand on this crucial issue," Mrs Gash said.

Mrs Gash was speaking in the wake of the Prime Minister releasing the report of the Biofuels Taskforce.

"The Prime Minister has announced a package of measures designed to inform the community and build consumer confidence about the use of biofuels, and primarily, ethanol," Mrs Gash said.

"This package will see Government car fleet operators encouraged to use biofuels and it will bolster the domestic industry.

"The likes of Manildra have the capacity to meet demand and we now have the opportunity to turn the heat up on the oil companies and to undo the damage done by the Labor Party's scare campaign on ethanol."

The Member for Gilmore is the Government's most outspoken advocate for the country's ethanol industry said there is cause to be positive about its future.

"The oil companies now have an Action Plan in front of them," Mrs Gash said.

"They are being asked to commit to putting ethanol in their fuel and I, for one, will do all I can to make sure they sign on the line."

Mrs Gash said the ball was back in the oil companies' court.

"If they refuse to meet the Action Plan goals then we are not ruling out mandating. This is an extremely positive step for our region and its ethanol industry," Mrs Gash said.