27 November 2009 Media Statement

National’s Biodiesel grants scheme a total flop

Energy Minister Gerry Brownlee must admit repealing the Biofuel Obligation introduced by the previous government was a huge mistake, Associate Energy Spokesperson Chris Hipkins says.

“Last year Gerry Brownlee took the backward step of repealing the Labour-led government’s Biofuel Obligation under urgency, replacing it with a grants scheme for biodiesel producers.

“However, National’s biodiesel scheme has now been revealed as a total flop. Information I obtained through written parliamentary questions shows that of the $36 million allocated to the subsidy scheme, less than $44,000 has actually been taken up.

“This means less than 2 percent of the funding allocated for the scheme is actually being spent, and shows that the government’s belief that a subsidy for Biodiesel producers is a more effective way to encourage the production of biofuels is mistaken,” said Chris Hipkins.

“How can Gerry Brownlee claim that the government is serious about encouraging the uptake of biofuels when National’s flagship policy in this area has been a failure?

“It is becoming increasingly obvious that the government’s commitment to renewable energy is a complete sham. Not only has it’s flagship biodiesel scheme proved to be a total flop, but the Emissions Trading Scheme has been a shambles, and efforts to encourage renewable electricity generation have been scrapped.

“Just this week Climate Change Minister Nick Smith noted the biodiesel grants scheme as an example of what the government was doing to promote renewable energy, so clearly they aren’t doing much at all.

“With this sort of track record, how can the Ministers expect New Zealanders to have any confidence in the National government’s commitment to renewable energy and addressing the challenge of climate change?” Chris Hipkins said.

ENDS

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