Mr PETER DRAPER (Tamworth) [11.03 a.m.]: We have had a number of debates in my time in the Parliament on biofuels, and I am pleased to support the Biofuel (Ethanol Content) Bill because I believe it is heading in the right direction. Biofuels have a major role to play in meeting the growing energy needs of this State. Apart from that, there are major economic, environmental and public health benefits to be had by encouraging the use of biofuels. Australia sells 30 million litres of fuel ethanol every year whereas, in comparison, Brazil sells 41 million litres of fuel ethanol every day.
The production of ethanol is of great importance to the Tamworth electorate and, in particular, to Gunnedah, where the construction of a $100 million ethanol plant is getting closer by the day. Council has completed the development application process, so this is a very exciting time. Matthew Kelly, the managing director of Primary Energy Pty Ltd, has the finishing line in sight. He has actively and passionately pursued his vision to establish Australia's first grain-fed dry-milling ethanol plant for many years. The project has been strongly supported by Gunnedah Shire Council and the Gunnedah community is set to enjoy enormous benefits.
As I said in a previous debate on ethanol in this place some time ago, during the first 12 months of operation the Gunnedah plant is predicted to inject $516 million into the regional economy, with $1 billion predicted over five years. The plant will provide employment for 50 permanent workers, 350 indirect jobs in transport and marketing and more than 500 jobs in construction. One of the most attractive aspects of the proposal is that it will provide north-west New South Wales farmers with a reliable market for their crops. It will consume about 300,000 tonnes of locally grown grain every year. It will use 400 megalitres of water, utilising industry wastewater and town grey water. It is anticipated to need 1.6 petajoules of natural gas. Indeed, this plant will provide the impetus for Gunnedah to be connected to the natural gas pipeline that will run near the town. The plant will produce 120 million litres of fuel-grade ethanol, which will significantly boost the availability of locally produced ethanol.
In my previous speech I pointed out the many benefits from increasing ethanol production, including the revitalisation of country towns, increased investment and jobs in regional areas and more stable employment. It will also increase value adding to our agricultural crops and provide crop diversification for farmers, leaving them less exposed to global commodity price fluctuations. It will provide an alternative and stable income for growers through fixed supply agreements, which will give a guaranteed market and price for a set volume of product. We will also achieve a more diverse regional industry base and our regional infrastructure will be enhanced. The proposed ethanol plant at Gunnedah is just one example of what ethanol can do for a regional economy.
It is important to recognise that production of ethanol from agricultural crops is renewable, unlike production of refined petroleum products from crude oil, which is a finite resource and which is linked to the global marketplace for petroleum products. Any move to reduce our dependency on foreign economies and foreign oil producers should be welcomed. The Centre for Agricultural and Regional Economics has performed several studies on the potential regional impact of ethanol production. A 1996 study concluded that there is the potential to establish up to 30 ethanol plants in regional New South Wales. This bill will play a part in helping country communities to realise that potential, with Gunnedah leading the way.
Using ethanol-blended petrol reduces vehicular tailpipe emissions of carbon monoxide, total hydrocarbons, 1-3 butadiene, benzene, toluene, xylenes and, in some cases, nitrogen oxides. As Associate Professor Ray Kearney from the University of Sydney stated in a 2003 paper, long-term particulate matter exposure is proven to be associated with respiratory and cardiovascular disease, as well as 20 per cent of lung cancer cases. That is an enormous public health impact. To think that we can achieve a 30 per cent reduction in these cancer-causing particulates by blending ethanol and petrol makes this bill even more important. Professor Kearney has developed some images of city versus country lungs in non-smokers and it really is startling to see the difference in a normal lung from a healthy rural resident compared with the lung of a Sydney city resident, which of course is exposed to pollutants from many motor vehicles. If we can reduce those pollutants by 30 per cent, we will achieve a significant saving for our public health system and diminish suffering in people with lung cancer and other lung diseases.
Particulate matter arises mainly as a result of fuel combustion from motor vehicles. Adding ethanol to petrol enables those particulates to be completely burned, because it assists the combustion process and substantially reduces those particles in the emissions from motor vehicles. Professor Kearney stated that widespread exposure to vehicular pollutants significantly affects public health. He also stated that government agencies around the world are taking action to reduce those particle emissions from fossil fuels, especially from motor vehicles, and that progress in this direction will be enhanced by introducing alcohol or ethanol into fossil fuels.
Foreign car manufacturers are now producing motor vehicles that can be automatically computed to run efficiently on alcohol fuel with a blend as high as 85 per cent ethanol. As the member for Vaucluse pointed out, locally produced vehicles have a similar potential, with his car running cleanly and efficiently on an 85 per cent blend. The Commonwealth Government has a policy objective to increase the volume of biofuels, including ethanol, to 350 million litres by 2010. A number of members have pointed out that the New South Wales Government's car fleet is some 24,000 vehicles strong, so there is potential for the Government to set a great example for the rest of the State by converting its fleet to ethanol. The Government is talking about cutting V8 vehicles from the fleet in favour of more fuel-efficient vehicles, including hybrids. However, a practical initiative of converting the fleet to ethanol blends would have an immediate impact on emissions and public health.
This bill will help to deliver a triple bottom line for the State. There are many social benefits to be had. In public health outcomes we are talking about a potential massive decrease in lung cancers, particularly in metropolitan areas. The economic benefits, particularly to regional areas, are immense, not to mention the result of less dependence on foreign countries for petroleum products. Finally, the environmental benefits speak for themselves. Ethanol burns cleanly, it produces water, it is an alcohol product as opposed to a petroleum product, and up to 30 per cent fewer pollutants can result from a blend with petrol. This bill points us in the right direction, but there is still a long way to go. I commend the bill to the House.
