10. JONATHAN YOUNG (National—New Plymouth) Link to this
to the Minister of Energy and Resources
What is the Government doing to encourage the bio-diesel industry in New Zealand?
Hon GERRY BROWNLEE (Minister of Energy and Resources) Link to this
The Budget will contain funding of $36 million over the next 3 years for grants to bio-diesel producers at a maximum rate of 42.5c per litre of bio-diesel. The initiative fulfils the Government’s pre-election promise of providing an equivalent incentive for bio-diesel to that which is enjoyed by bio-ethanol.
Hon GERRY BROWNLEE Link to this
I have seen a report from the Bioenergy Association of New Zealand, whose spokesperson said that the grants scheme looks like great news for bio-diesel producers in New Zealand and will give the sector the confidence it needs to continue to grow and to secure future investment. Clearly, on this matter the Labour Party is, as usual, quite confused in that both its energy spokespersons Mr Hipkins and Mr Chauvel—I note it now takes two to mark this portfolio—described the grants scheme as a bit of a joke. But that was Labour’s previous policy.
Hon GERRY BROWNLEE Link to this
I have seen a report from the Bioenergy Association of New Zealand stating that the prompt action by the Minister has provided immediate security for 40 direct jobs and 200 indirect jobs, and that the implementation of the investment plans will provide a further 100 jobs in the first year of the scheme with the expectation that the industry will grow to provide at least 55 direct jobs in 3 years. Although the focus of the grants scheme is to support new and fledgling industry in New Zealand, the employment effects are also very pleasing; so too will be the reduction in New Zealand’s greenhouse gases that will result from increased use of bio-diesel produced in New Zealand.
Charles ChauvelDoes the Minister accept that his grants scheme is too little too late, for the development of projects such as the Argent Energy 60 million litre bio-diesel plant in the Bay of Plenty, and the plants of BioDiesel Oils (NZ) Ltd in Auckland and Waharoa, which have been cancelled or put on hold because of the uncertainty created by his short-sighted repeal of the biofuels obligation; and can he tell the House how many jobs his stop-start policies in the biofuels area have cost New Zealand in the last 6 months?
Hon GERRY BROWNLEE Link to this
Most of what the member asserts is a load of rubbish. I note that the bio-diesel industry of New Zealand has greeted this grants programme with a great deal of enthusiasm. As I have said, there will be developments that see the industry grow here. The member fails to tell the public that it was the previous Government’s intention to import 60 million litres of unsustainably produced bio-diesel just so it could feel good about New Zealand’s carbon emissions, but having little regard for the actual worldwide position.
I seek leave to table a news report confirming that Argent Energy’s 60 million litre bio-diesel plant in the Bay of Plenty and the plants of BioDiesel Oils (NZ) Ltd in Auckland and Waharoa have been cancelled or put on hold as a result of the repeal of the biofuels legislation.
Mr SPEAKERIt is from Radio New Zealand Newswire, summarising comments from those organisations.