GATINEAU, Que. – Federal politicians pledged their continued support for the biofuel industry at last week’s annual meeting of the Canadian Renewable Fuels Association.
However, they warned there may not be much money in the future to back up that support.
Supporting the renewable fuel sector is good economic and rural development policy, Conservative, Liberal and New Democrat MPs said Dec. 1.
“I don’t believe it is a partisan issue,” said Liberal agriculture critic Wayne Easter. “There may be some differences between parties but you will find broad support.”
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Southern Ontario Conservative MP Joe Preston told the convention that construction of the 162 million litre IGPC Ethanol Inc. plant in his riding has been good for jobs and a boost for local farmers.
They now have another market for their grain and stronger prices because of it, he added.
“It is good for farmers in my riding.”
However, the politicians also warned that the industry may find support comes with fewer dollars as it lobbies for more government backing to build next generation biofuel plants.
“The biggest challenge will be that with government debt at all levels, what will be the impact on the government ability to support the industry?” Easter said.
Preston said the industry should not assume its future depends on government money. The best way government can help is to create a market by imposing biofuel content requirements.
“Then let the government get out of the way and let the industry stand on its own,” he said.
However, one questioner complained that the biofuel industry is seen as requiring subsidies but the public does not realize the competing gas and oil industry also receives government help.
British Columbia New Democrat Nathan Cullen agreed.
He said tax breaks to the oil industry are worth billions of dollars each year, and government should recognize that as it decides how to support biofuel companies.
“It is the government’s role to treat different sectors fairly,” he said.
