6. SU’A WILLIAM SIO (Labour) Link to this
to the Minister of Energy
What reports has he received on the price impact of biofuels in New Zealand?
Hon DAVID PARKER (Minister of Energy) Link to this
I have seen a report from Gull Petroleum celebrating that it has already sold enough biofuel to meet the New Zealand sales obligation if it was in place right now. As to the cost, its biofuel blend of petrol, which comes from sustainable New Zealand sources, is priced at less than the cost of the petrol sold by its competitor oil companies. I am further advised that bio-diesel blends from New Zealand tallow are expected to retail at less than 2c a litre more than traditional diesel. If traditional diesel increases in price, bio-diesel blends could be cheaper than traditional diesel.
I have heard John Key say that paying an extra 7c a litre for biofuels is not the way to go, and that National will be opposing the Biofuel Bill. He is way off the mark; it is now clear that New Zealand biofuels will be both sustainable and affordable. I, along with officials and biofuel producers, can show National members that their concerns are unfounded. However, they are clearly determined to oppose climate change initiatives in order to try to score political points.
Gerry BrownleeHas the Minister seen the United Nations World Food Programme report that described biofuel as “a crime against humanity” because of its effect on world food production and prices; if so, why is he pressing ahead with the bill, which will, as he admits himself, require New Zealand to import biofuels from unsustainable sources overseas, or has he now changed his mind and is telling us that the biofuel obligation can be met from biofuel grown and produced in New Zealand?
The member continues to make the mistake that some other people in this debate do. Just because some biofuels come from unsustainable sources does not mean all biofuels will come from unsustainable sources.
I raise a point of order, Madam Speaker. That was an interesting contribution from the Minister but was hardly an answer. The simple question was whether he changed his mind about the capacity of the New Zealand industry to deliver sustainable biofuels, or whether he is still saying it is OK to import biofuels that are grown on land where rainforests have been cleared.
Hon Dr Michael Cullen Link to this
Part of the problem there is that what the member just said is not the question he actually asked. The Minister certainly addressed the question that was asked.
Madam SPEAKER