Ethanol producer Manildra gave vastly inflated figures to the NSW government about the number of people employed in the industry before legislation forcing small petrol retailers to sell the biofuel.

According to better regulation minister Victor Dominello​, Manildra told a staff member the industry supported 3000 direct jobs and 20,000 indirect jobs – figures quoted by Mr Dominello in his speech introducing the bill to the NSW Parliament.

Former NSW Minister for Innovation and Better Regulation Victor Dominello championed the implementation of the new laws in late 2015. Credit:Orlando Chiodo

But Mr Dominello has been forced to correct the record after discovering the true numbers were 281 direct jobs and 2668 indirect jobs.

Fairfax Media has previously revealed Manildra secured 20 meetings with NSW ministers and donated more than $160,000 to the Coalition in a ferocious lobbying effort before the introduction of new laws.