Dangers of ethanol in petrol ignored, says ALP
December 10 2002
By Josh GordonCanberra
The ALP has accused the Federal Government of ignoring bureaucratic advice to limit the ethanol content of petrol, claiming that its failure to act risked up to $2500 in damage to every car.
In leaked submissions made to cabinet in September, Environment Australia and Agriculture, Fisheries and Forestry Australia called for a 10 per cent cap on the ethanol content of petrol.
Motoring organisations have warned that ethanol levels higher than 10 per cent can damage engines and make warranties void.
Caps are in force in most countries except Mexico, where engines are specially modified.
Ethanol can be produced from sugar cane, and the government is considering a mandated level of ethanol in petrol to try to help the struggling sugar industry.


Labor frontbencher Daryl Melham said a Sydney women in his electorate had complained of more than $2500 in damage to her car because she regularly filled up at a petrol station where 17 per cent ethanol was used.
Mr Melham produced receipts, letters and a fuel analysis report in parliament.
Labor treasury spokesman Bob McMullan said the Australian Competition and Consumer Commission had also written to Environment Minister David Kemp calling for a 10 per cent ethanol limit, or warnings when higher ethanol blends were sold.
Mr McMullan said Treasurer Peter Costello was the minister responsible but was indifferent to the problem. But Mr Costello said the government would not act hastily, and was waiting for a full scientific study from Environment Australia before it made any decision.
"The reason is we don't do this things on an interim basis is it might be wrong," Mr Costello told parliament.
The Federal Government is considering mandating minimum ethanol levels in petrol in a plan to help the floundering sugar industry, which produces ethanol as a byproduct.
Labor has repeatedly claimed that Mr Howard would not agree to a 10 per cent ethanol limit if this affected Manildra, which makes ethanol out of wheat, because the company's chairman, Dick Honan, is his close friend.
Found on website: http://www.theage.com.au/articles/2002/12/09/1039379784027.html