Media release: 15 May 2012
The O'Farrell government has ignored warnings of its own Treasury and
persisted with the requirement that 6 percent of all petrol sold in NSW is
ethanol, according to Greens NSW MP John Kaye.
Documents obtained by Channel 7 show that Treasury warned the NSW
government that the policy was protecting Manildra's highly profitable
position as a monopoly supplier, increasing costs for motorists and
offering few if any benefits.
Greens NSW MP John Kaye said: "The O'Farrell government has no excuse for
continuing with the mandate.
"Their Treasury department has warned that the policy is creating a
monopoly and unnecessarily punishing motorists for little or no benefit.
"It's hardly surprising that the cabinet is in meltdown over the E10
policy, with key Liberals at war with Nationals.
"That Treasury's warnings were ignored is a testament to the power of
Manildra and the more than $670,000 donations the Nowra-based company has
made to the NSW Nationals and Liberals since 1999.
"The O'Farrell government should stop sacrificing motorists' hard-earned
cash and its own economic credentials to appease a major donor.
"The Coalition government seems to be able to effectively slash and burn
public sector pay and conditions. When it comes to the hundreds of millions
of dollars that Manildra is able to take from motorists' wallets, Premier
Barry O'Farrell goes to water.
"This mess is Labor's invention and they too no doubt ignored economic
advice to go ahead and to fatten up Manildra's profits.
"The Treasury documents should leave each member of the cabinet with no
doubt. The E10 mandate is a failure that should be revisited before yet
more damage is done to the state's economy," Dr Kaye said.
For more information: John Kaye 0407 195 455