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- 26 June 2003
Gunnedah Ethanol Plant Proposal
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Mr DRAPER (Tamworth) [5.38 p.m.]: Earlier today the honourable member for Lachlan referred to ethanol. As honourable members are aware, there are many plans to develop ethanol plants across the State. One plan that is being thoroughly investigated is proposed for Gunnedah, which is in the electorate of Tamworth. I note the presence in the Chamber of the Minister for Fair Trading. Obviously she has a keen interest in the ethanol debate. The initial impetus for the proposal started more than a year ago when plans were first unveiled for a $55 million ethanol plant in the north-west, but at that stage no site had been selected. As time went on it was decided that Gunnedah would become the preferred site. Since then, there have been proactive talks and high hopes throughout the electorate.
Gunnedah has had its fair share of misfortune in recent years, from the closure of the abattoir and coalmines, the closure of the pet food factory and its subsequent relocation to Dubbo through to the worst drought on record. For a town that is hurting a lot, the plans for the ethanol plant are the light at the end of the tunnel. It is a project that cannot be allowed to fail. Over the past year developers have been working hard to have this facility built, but last month's Federal budget, in which it was announced that the valuable 38¢ per litre fuel subsidy would be extended, gave the biggest boost to the campaign so far. That was one of a number of major concessions the developers were seeking so that the project could get off the ground. The Government has also indicated its support for a 10 per cent cap on ethanol in fuel.
In recent months, the wheels have been turning faster than ever. Last month the Northern Daily Leader, the major newspaper in the north-west, ran an article announcing that developers were now looking at a bigger plant than they had originally planned. They are now looking at a $70 million facility, which is almost triple the size of the plant first proposed. If it goes ahead, it will produce 120 million litres of ethanol each year and create some 50 permanent jobs in Gunnedah and around the district. There is already talk from the proponents that it may even increase its capacity to 180 million litres, with a subsequent increase in jobs and local investment. On top of that, we are looking at 350 indirect jobs and 500 during construction. For a town such as Gunnedah, that is verging on the miraculous. We are talking about an extra $30 million in household income each year.
Ethanol workers are not the only ones who will benefit. Based on 120 million litres, around 300,000 tonnes of sorghum would be needed by the plant each year to produce the bio-fuel. Some 450,000 tonnes of sorghum would be needed if capacity increased to 180 million litres. The region's farmers would have a new market to sell their product. Another benefit is that sorghum as a crop uses much less water to grow than cotton, which has been grown predominantly in the area. At a time when the Government is working to reduce water usage in the Namoi Valley, the requirement for additional sorghum crops will help many farmers adjust.
Overall, this plant will be extremely good news if it comes off. The President of the New South Wales Graingrowers Association's Grains Council said late last year that these ethanol plants could help to improve the financial situation of farmers. That is exactly what the area of Gunnedah desperately needs. This plant relies heavily on the Central Ranges natural gas project and vice versa. I am pleased to inform the House that that too is moving ahead. The gas pipeline will stretch from Dubbo to Tamworth, servicing many of the towns and areas in between such as Gunnedah and Werris Creek. Tenders for that project will be called within the next few weeks.
I will take a moment to thank those who have helped to progress the plans to this stage. First and foremost is Mr Matthew Kelley of Primary Energy, who has been the driving force behind these plans, as well as the hard-working team of advisers and partners who hope that this project becomes a reality. Gunnedah Shire Council and the community of Gunnedah rightly deserve special mention. They have had a long-term vision to restore the area to prosperity, and they have been proactive in supporting the proponents of the ethanol plant. The Federal Government has given the ethanol industry a lifeline, and I acknowledge the invaluable contribution made by Gunnedah's local Federal member and Deputy Prime Minister, John Anderson, as well as the continuing energetic support from the Federal member for New England, Tony Windsor. It has taken a lot of hard work but with ongoing co-operation between of our representatives the efforts will pay off. Ethanol has the potential to greatly improve the future of Gunnedah. Gunnedah has suffered many setbacks in the past few years and this could be the start of a bright new future. The benefits to the environment of this renewable fuel will, hopefully, show up for many generations to come.
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