10 June 2009

Government Mistakenly Gives Biofuel Subsidy to Foreign Farmers

National’s new biodiesel subsidy scheme risks doing more harm than good to the environment and to New Zealand business, Green MP Jeanette Fitzsimons said today as she released a Member's Bill to fix the mistake.

“Under the Government’s scheme, responsible Kiwi firms can be undercut by diesel made from clearing tropical rainforests,” Ms Fitzsimons, Green Party Energy Spokesperson said.

“National threw the baby out with the bathwater when they repealed sustainability standards. I assume it must have been a mistake because their biodiesel scheme defeats the purpose which is to look after our environment and our economy.”

Her Sustainable Biofuel Billwould make sure biofuels sold in New Zealand were good for the environment, by restoring a sustainability standard.

“New Zealand farmers are worried that the Government’s biodiesel schemewill lead to huge subsidies to foreign farmers,” Ms Fitzsimons said. “The Member's Bill resolves the issues created by the subsidy scheme.”

Last year the Labour Government introduced a bill to require companies selling motor fuel to sell a small proportion of biofuel. The Green Party negotiated an amendment to ensure that the biofuel was from sustainable sources. The amendment ruled out fuels made from food crops, made by destroying biodiversity, or which did not significantly reduce carbon emissions.

The incoming National Government repealed the legislation a few months after it was passed, preferring a subsidy for biofuels to a mandatory obligation, but also dropping the sustainability standards.

The Members Bill released today re-instates the legal framework for selling sustainable biofuels in New Zealand without violating World Trading Organisation (WTO) obligations. It does not distinguish between imported and locally produced biofuel, but requires both to meet the sustainability standard. The core provisions have already been through the Select Committee process and Parliament itself and remain unchanged in Ms Fitzsimons’ Bill.

“With a robust sustainability standard, we can unleash kiwi ingenuity and set the industry free. We have companies ready to make biodiesel from agricultural sector waste products. They just need the right type of help from Government.

“As with so many of the Green Party’s proposals, we can promote economic development at home and safeguard the environment, both at the same time. It’s the Green New Deal, and it’s not rocket science,” Ms Fitzsimons said.

The Bill will be entered in the next ballot for Members' bills, which could be as soon as 18 June.

The Sustainable Biofuel Bill can be downloaded here.
http://www.greens.org.nz/sites/default/files/Sustainable_Biofuel_Bill.pdf
Link to biodiesel subsidy description:
http://www.eeca.govt.nz/sites/all/files/biodiesel-grants-scheme-description-05-09_1.pdf

ENDS

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