Fed: Vaile keeps secret excise deal from Neumann while on trip

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Fed: Vaile keeps secret excise deal from Neumann while on trip

It's been revealed Trade Minister MARK VAILE kept secret from an Australian companya government decision on ethanol excise that ultimately cost the firm $400,000.

Mr VAILE has confirmed that the chief executive of Neumann Petroleum, PAUL MORTON,was part of a business delegation the minister lead to Iran in September last year.

Back home, federal cabinet changed excise arrangements on ethanol that cost Neumann $400,000.

The arrangements now supply the Manildra Group of companies around $2 million a monthin subsidies.

Labor claims Prime Minister JOHN HOWARD misled parliament by denying he held a meetingwith the head of Manildra, Liberal Party donor DICK HONAN, even though the two met onAugust the 1st last year.

Labor also claims the government helped Mr HONAN'S company by changing excise arrangementsat the expense of Neumann and another firm, Trafigura Fuels, which imported ethanol fromBrazil.

Mr MORTON says he cannot believe Mr VAILE did not tell him the government was evenconsidering changing its ethanol policy while the two were on the business trip.

Mr VAILE says Mr MORTON did not ask him about the issue.

AAP RTV sw/sb/rp

KEYWORD: MANILDRA (CANBERRA)