Dear______________,

RE: Personal Production of Biodiesel.

With the help of the government’s $36 million grant scheme for biodiesel and or ethanol, biodiesel manufactured large scale in this country is looking promising.

Late last year the government added biodiesel along with a range of transport fuels to the excise net. To assist producers a grant scheme has also been introduced to effectively pay back the same amount paid in excise until 2008, providing stringent and costly requirements are met. The economics of this system are viable when producing biodiesel in commercial quantities i.e. 40 000 ton per annum.

This current system leaves a huge gap, making biodiesel for personal use is now economically un-viable. The system also mandates extensive record keeping and licensing requirements for people who simply want to make enough fuel to run their car. As a result, the estimated 500+ people making biodiesel for non-commercial purposes will have to make it illegally or stop altogether. Buying biodiesel is simply not an option for most people, as only one licensed production facility exists (at Rutherford) in Australia. There are currently 54 biodiesel browsers in the country.

A similar situation has existed in the past and was rectified with the addition of one paragraph being added to the schedule of the excise tariff act 1921. This precedent involves home brew beer.

Beer is an excisable product also requiring extensive record keeping and licensing requirements. To allow individuals to make beer for non-commercial purposes an amendment was passed effectively exempting home brew beer.

I am asking for your support for the following amendment to the Excise tariff amendment bill No 1 2003. This amendment will exempt biodiesel made for non-commercial purposes just as home brew beer is.

“Tariff items 11 and 12 of this Schedule do not include any biodiesel which has been produced for non-commercial purposes, using non-commercial facilities and equipment.”

Looking forward to your reply,