16 March 2005

Budget Response
British Sugar calls for rapid action on Bioethanol as a transport fuel

British Sugar, with its interest in becoming the major supplier of bioethanol in the UK, welcomes the continuation of the duty reduction for bioethanol announced in the Chancellor’s Budget today. The undertaking to examine enhanced capital allowances for the construction of bioethanol factories is also positive.

Nevertheless, to make real progress, we must see the rapid introduction of a Renewable Transport Fuels Obligation (RTFO), as described in paragraph 7.42 of Budget 2005. This should require road fuel suppliers to blend bioethanol with petrol.

The introduction of an RTFO would facilitate the establishment of an indigenous UK bioethanol industry, and lead to significant cuts in CO2 emissions from transport - the sector with the poorest record in this field.

We are working closely with the Government to support the domestic economy by stimulating the use of this environmentally-advantageous, modern transport fuel.

We will continue to press and campaign for this obligation to be introduced before the end of 2005.

ends