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Pawlenty calls for phase-out of ethanol subsidies
Former Minnesota governor and Republican presidential candidate Tim Pawlenty is calling for a phase-out of federal ethanol subsidies.
Pawlenty made his remarks during a campaign speech in Des Moines on Monday.
“The hard truth is that there are no longer any sacred programs. The truth about federal energy subsidies including federal subsidies for ethanol is that they have to be phased out. We need to do it gradually, we need to do it fairly and we need to do it,” Pawlenty says.
Pawlenty says, as governor of Minnesota, he reduced state subsidies for ethanol. And he says it’s time to do the same on the national level—in his words— “on a much, much larger scale.”
“It can’t be done overnight. The industry has made large investments and it wouldn’t be fair to pull the rug out from under them immediately, but we must face the truth. If we want to invite more competition, more investment and more innovation in the industry, we need to get the government out,” he says.
Responding to Pawlenty’s comments, the president of the Iowa Renewable Fuels Association—Walt Wendland—says the ethanol industry welcomes reform of current ethanol incentives. But Wendland stressed that the, what he calls, “massive amount of federally-funded petroleum incentives” must be targeted as well.
He challenged Pawlenty to go to Houston, Texas—the heart of oil-producing country—and deliver a speech outlining his plans to “phase out petroleum subsidies.”
AUDIO: Excerpts from Pawlenty speech (2 min MP3)
Radio Iowa contributed to this report.
Our government should not be subsidizing private enterprise – period!