'Disappointed' Dunne to oppose Govt repeal of biofuel law

The Government is facing another challenge from one of its partners, with United Future leader and Revenue Minister Peter Dunne saying he will oppose the repeal of the law obliging oil companies to sell biofuel.

"I am disappointed that National feels the need to revisit this legislation."

Energy and Resources Minister Gerry Brownlee tabled the Energy (Fuels, Levies and References) Biofuel Obligation Bill. It will be passed under urgency through all stages next week.

"The Government supports the introduction of biofuel as an alternative fuel source with potential for New Zealand. However, we do not support any form of mandatory obligation."

The old law brought uncertain costs to consumers.

Oil companies estimated it would increase the cost of fuel between 2c and 8c a litre, he said.

Mr Dunne said that when the Biofuel Bill was debated earlier this year, United Future voiced concerns over the potential importation of unsustainable biofuels and the impact that production of such products might have had on worldwide fuel supply.

"While National claims its repeal is due to concerns about environmental protection and world fuel shortages, it is about to do the very thing that will potentially bury a 100% sustainable tallow-based biofuel industry right here in New Zealand," he said.

Former energy minister David Parker said the National Government had already cost New Zealand jobs and killed a fledgling industry.

"National is putting political point-scoring ahead of not just the environmental but also the economy and employment at a time when this country needs jobs.

"Today I have been contacted by Bio Diesel Oils NZ Ltd who has spent over $10 million on their new factory at Waharoa to produce 60 million litres per annum of biodiesel from tallow.

"Their East Taranaki facility is already operating and they planned to employ 48 people across two sites. I am told 75-year-old Tom McNicholl invested his family's life savings and is now expected to lose virtually all of it," Mr Parker, a Labour list MP from Dunedin, said.

This week, the Maori Party voted against the amended employment law which saw the introduction of a 90-day trial period for new employees at businesses employing fewer than 20 workers.

Mr Dunne's opposition will not be as hard to manage as that of the five Maori Party votes as he is a single vote for United Future.

However, after only four days of the new Government, two of its partners have flexed their muscles. Act also has five votes.

It used some of its influence yesterday to bring forward the introduction of the trial period to March 1 in an amendment not signalled by the Government in any earlier parts of the debate.

So far, nothing is looming on the horizon which would cause Act to vote against a Government measure.

If it did do that at the same time as the Maori Party, Prime Minister John Key would find himself in difficulty.

Dene.mackenzie@odt.co.nz

 

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