12. STEVE CHADWICK (Labour—Rotorua) Link to this
to the Minister of Energy
What reports, if any, has he received on the Prime Minster’s announcements this week on biofuels?
Hon DAVID PARKER (Minister of Energy) Link to this
I have received many reports welcoming the announcement of a 3.4 percent sales obligation, equivalent to over 100,000 carbon neutral cars and trucks in New Zealand by 2012. Biofuels are good for our health, our environment, and our economy. This really is sustainable economic transformation. Endorsement of our approach has been widespread, including that from environmental groups, the motor industry, and oil companies.
All parties are welcome to submit any new policy ideas they may have, through the regular submission process. I have been meeting with other parties over the matter of biofuels and other climate change matters. Yesterday the National Party, in a hollow stunt, cancelled our scheduled meeting to discuss these important issues. Given National’s inability to keep up with changes in technology and leadership, I believe that it cancelled the meeting because it has so little to offer.
Gerry BrownleeCan the Minister tell the House, assuming that carbon neutrality is not just an empty slogan, exactly where he is going to offset the other 31 million tonnes of emissions we would still be emitting from the energy sector alone, after his biofuels target was fully implemented in some 5 or 6 years’ time?
There are a number of points, but I do not have time for all of them. Of course, some of the reductions in emissions will come from the stationary energy sector, including electricity generation. The other point that has been made is that the biofuels target will be reviewed annually from here on. This is an area that is moving fast. The importance of this measure is that it actually gets the infrastructure in place to cater for higher levels of biofuels in the future.
Peter BrownIs the Minister aware of the six possible concerns the Automobile Association has in regard to biofuels; if he is, will he comment on the first three, which revolve around price, vehicle performance, and engine damage?
Certainly. The concerns of the Automobile Association are proper; it has to protect the interests of its members. In respect of price, it is not expected that the price of bio-diesel will be higher than the cost of diesel. Indeed, on prices last year it would probably have been cheaper. In respect of bio-ethanol, the exemption from excise duty will mean that the production of ethanol itself is economic, but there will be a very slight increase—probably of 1c to 2c per litre in fuel price—by 2012. In respect of quality issues, there is not expected to be any diminution in performance of vehicles with regard to their ability to take biofuels. There is a grey area as to how much bio-ethanol they can take, but there is no doubt they can take up to 3 percent of bio-ethanol blends, which is what would be delivered by a 3.4 percent mandatory obligation.
Can the Minister confirm that if his biofuel strategy is successful and after 2012 we have the equivalent of 100,000 vehicles on New Zealand roads running with biofuel, we will still have over 3 million vehicles on our roads running with fossil fuel?
No I cannot confirm that. Indeed, the essence of the target, if the member had been following, is that it is likely that all vehicles will be operating on blends that incorporate biofuels.
Hon Dr Nick Smith Link to this
I seek leave to table the letter from Mr Parker and the response from National, so that the public and the Parliament might be clear as to the conditions under which National is interested in having climate change discussions with the Labour Party.
I seek leave to table a copy of the website from the National Party Bluegreens website this week showing Dr Brash as party leader and no commitment to biofuels.
Madam SPEAKER