Some of you may already be aware of the huge media scare campaign 
against ethanol-blended petrol in Australia. Here is a great story 
that appeared in the Sydney Morning Herald, Monday April 28 2003:

---------------------------------------------
Ethanol fuel line has motorists labouring under misapprehension
By Paul Sheehan
April 28 2003 



A Few days before Christmas last year, on December 18, this newspaper 
published a consumer horror story on the front page. It unleashed a 
barrage of controversy about the dangers of buying cheap petrol, 
especially petrol with high levels of ethanol.

Good story. Pity it wasn't true.

It was about a motorist who saved a few dollars buying cheap petrol 
only to be been hit with a repair bill of $746.90 because of 
extensive engine damage caused by contaminated fuel, in this case, it 
was claimed, excessive amounts of ethanol. But the motor mechanic 
upon whose words the story hung, Neil Streeting, says everything in 
the story was wrong.

"I'm still really angry," he told me last week. "I never claimed that 
I had repaired 10 cars damaged by ethanol. I never said anything like 
that. What I told the SMH about an engine being wrecked actually 
related to another vehicle damaged by petrol contaminated by kerosene 
over a year ago."

The problem was not ethanol, Streeting said, but unscrupulous service 
station operators who sold petrol containing a variety of cheap 
substitutes for petrol: "I've got nothing against ethanol. It's a 
good fuel. It's good for the country."

Why would ethanol be good for the country? Because - and we now enter 
terrain of considerable debate - if Australia were to use petrol 
blended with up to 10 per cent ethanol (the maximum level at which 
everyone, including the oil industry, is comfortable), it would cut 
our oil imports, boost the rural economy (which produces ethanol, 
primarily from grain), reduce the nation's greenhouse gas emissions 
and cut the amount of pollutants caused by the additives in petrol.

All good, and all up for debate, but the bad publicity surrounding 
ethanol has been caused by something else: unscrupulous service 
station operators selling petrol contaminated with cheap substitutes, 
or motorists not being told they were buying petrol that is blended 
with up to 20 per cent ethanol. These are quite separate issues.

Meanwhile, the ethanol industry is hemorrhaging. "It was all a 
political set-up," Streeting told me. "I'm just a nobody in 
workerland, but the next thing I knew I was in the middle of a 
political firestorm. It took me a while to work it out, but I 
realised this was all about Labor bashing the Liberals."

Streeting's media adventure began when he got a call from the office 
of a federal Labor MP in Sydney asking if he'd encountered problems 
caused by contaminated fuel. "I told her, 'Yes, I'm working on a car 
right now that has been damaged by contaminated fuel.' I never 
mentioned the word 'ethanol'. She asked if I would talk to the media. 
Like a dickhead I said yes. I got a call from the Herald within an 
hour."

As readers would expect, when the Herald later learnt there were 
problems with the story, it investigated the matter, published a 
correction, and assigned two senior journalists to clean up the mess. 
But the story had taken on a life of its own. Politicians had rushed 
in, and other dubious stories found their way into print and onto the 
airwaves.

On January 11, The Daily Telegraph ran a story under the 
headline: "Costs of ethanol: $800 in repairs and four days' pay". 
Even though the headline and the opening of the story flatly blamed 
ethanol, the story itself contained absolutely nothing to back up the 
claim: "Mr Whalan fears he is the latest victim of ethanol-laced 
unleaded petrol ... While he has not conducted tests on the petrol in 
his tank, Mr Whalan's mechanic suspects a high ethanol content could 
be to blame ... 'Up until it gets tested we can't say for sure,' said 
[mechanic] Rocco Zinghini."

In other words, shoot first, ask questions later. Whalan's petrol was 
later tested. The Australian Biofuels Association, the ethanol lobby 
group which takes such stories very seriously, found that the test 
showed no ethanol was in the petrol. Not one word of apology or 
correction was published by The Daily Telegraph.

But the way this story unfolded was not really about consumers. It 
was about politics. On the same day the Herald's ethanol horror story 
ran, Labor's shadow treasurer, Bob McMullan, gave a press briefing at 
which he thundered: "Today's further news about specific cases of 
damage to engines ... as a result of excessive ethanol in petrol 
sends one very clear message. John Howard should go down on his knees 
and apologise to ... the hundreds of thousands of other motorists in 
Sydney who are paying hundreds, and, in some cases, thousands of 
dollars to repair their cars, because John Howard will not allow the 
Government to do what every independent adviser says they should do, 
which is set a 10 per cent limit on ethanol in petrol ...

"We have spoken to a number of mechanics ... More than half a dozen 
tell the same story as the gentleman in The Sydney Morning Herald 
this morning - they speak of cars coming in with damage to engines 
and reduced performance as a result of purchasing petrol with an 
excess of ethanol. We have been out and had the petrol tested on a 
number of occasions and it is clear that the cause on those 
occasions ... was ethanol ..."

The tests? They were two complaints from constituents who had written 
to two Labor MPs in Sydney, both claiming that petrol with 17 per 
cent ethanol had caused engine damage. But Bob Gordon, who runs the 
Biofuels Association, says he's still waiting to see those tests, 
four months later.

Labor has never been dishonest about where this story came from: it 
came from the Labor Party. And the media exercise worked beautifully, 
especially the repeated references to the Manildra group - which 
produces most of Australia's ethanol - being a "major Liberal Party 
donor".

That was the real target. As for the Australian ethanol industry, it 
is lying by the side of the road, bleeding, the victim of a hit and 
run. 


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