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CTF blasts biofuel handouts

Author: David Maclean 2007/06/12
The Canadian Taxpayers Federation (CTF) is calling on the Saskatchewan government to scrap an $80 million program to subsidize production of biofuels.

The program, dubbed SaskBIO by the government, will distribute tax dollars to businesses, partnerships and cooperatives to develop ethanol and biodiesel production plants.

"Saskatchewan taxpayers have seen this government throw away hundreds of millions of dollars in subsidies and investments over the years," said MacLean. "This government has an embarrassing record when it comes to investing in pork plants, ski hills, potato sheds, and internet companies and there's no reason to believe SaskBIO will be any different."

"The government should not have the right to throw other peoples' money at flavours of the month," added MacLean. "The reality today is that the biofuels industry is already big business, and corporate head offices don't need any help from Saskatchewan taxpayers."

Ethanol: Dubious environmental benefits
The scientific community has raised significant doubts about the environmental implications of ethanol use. Experts say, with current technology, ethanol takes more energy to produce that it releases when burned in a vehicle, meaning ethanol emits more CO2 than gasoline. Other concerns include threatened biodiversity by expanding farm operations to supply grain for ethanol production, considerable amounts of solid waste with no viable market and substantial amounts of water required for production. It's estimated it takes as much as 6 liters of water to make one liter of ethanol.

"When the politicians say supporting big ethanol helps 'fight' climate change, they likely have no understanding of what the science currently says about ethanol," said MacLean. "The bottom line is the government isn't qualified to make a decision on the merits of ethanol, and therefore shouldn't gamble public money on it."

"Private investors - with their own money - are always best qualified to make investment decisions," added MacLean. "The very fact that there's such a strong demand for public biofuel subsidies ought to send a message to the government to think twice."

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