Smith Nick: Questions for Oral Answer — Questions to Ministers 
Text is incorporated into the Bound Volume 
Smith Nick: Questions for Oral Answer — Questions to Ministers 
[Sitting date: 24 July 2008. Volume:648;Page:17405. Text is incorporated into the Bound Volume.] 
8.  
Hon Dr NICK SMITH (National—Nelson) 
 to the  
Minister of Energy 
: Is the Government reconsidering its mandatory requirement for biofuels from 1 October 2008 given the widespread international concern about sustainability and impacts on food prices and the sustainability standard not coming into effect at the earliest until July 2009? 
Hon DAVID PARKER (Minister of Energy) 
: 
 No. Biofuels are already being sold in New Zealand. Currently they can be imported and used from unsustainable sources. Whatever way we look at it the bill improves the status quo. National’s opposition is just another excuse for delay exposing once again its hollow pretence on climate change issues. 
Hon Dr Nick Smith 
: Can he confirm that like with the emissions trading legislation he does not have the numbers on the Biofuel Bill and that is why it sits at No. 22 on the Order Paper and more than 4 weeks has passed since it was reported back from the select committee with no signs of getting to a second reading? 
Hon DAVID PARKER 
: I would have thought that Dr Smith learnt yesterday that questions on the progress of legislation in the House are to be addressed to the Leader of the House. 
Hon Marian Hobbs 
: To the Minister—[ 
Interruption 
]  
Madam SPEAKER 
: I am sorry I did not hear the member. I cannot hear with the level of chatter particularly from members who sit close to the Speaker. It is almost impossible to hear. 
Hon Dr Nick Smith 
: I raise a point of order Madam Speaker. My question asked whether the Minister had the numbers. On previous occasions you have ruled that is within a Minister’s responsibility. 
Madam SPEAKER 
: That was not all however that the member asked in the question; I listened to it. If the Minister wants to add anything more that is within his portfolio then he may. [ 
Interruption 
] He does not want to. 
Hon Marian Hobbs 
: What reports does the Minister have of New Zealand companies that want the Biofuel Bill to pass? 
Hon DAVID PARKER 
: New Zealand companies are queuing up to produce sustainable biofuels once the bill is passed but they want the certainty the legislation provides. I find it extraordinary that National which claims to support enterprise in business is doing everything it can to stop sustainable New Zealand businesses getting off the ground. 
Hon Dr Nick Smith 
: Has he read the latest report from the OECD published last week that concludes that biofuels have limited benefit in reducing emissions and are responsible for 30 percent of the international increase in food prices—this coming on the heels of negative reports from Oxfam the G8 the World Food Programme the Royal Society and the United Nations Secretary-General all calling for such biofuels policies to be reconsidered—and why is the Government ignoring those reports? 
Hon DAVID PARKER 
: Dr Smith remains confused by the proposition that just because some biofuels are bad not all are. I am not surprised he is confused because there is confusion on climate change issues across National. We have Mr Key on the one hand saying: “I firmly believe in climate change and always have.” despite being on the  
Hansard 
 record— 
Hon Dr Nick Smith 
: I raise a point of order Madam Speaker. It is a habit of the Government when it is in trouble to want to talk about National policy and what we say rather than being accountable. My question was about the OECD report on biofuels and what Oxfam the G8 and the United Nations have said about biofuels and it made no reference to National’s climate change policy. 
Madam SPEAKER 
: If we could just listen to the Minister’s answer then we can judge whether it addresses the question. 
Hon DAVID PARKER 
: I was pointing out that confusion can arise in National on these issues because it has Mr Key saying: “Even if one believes in global warming and I am somewhat suspicious of it …” yet later saying: “I firmly believe in climate change and always have.” Mr Key will say whatever he thinks New Zealanders want to hear but he and National have a very different agenda. 
Hon Dr Nick Smith 
: I raise a point of order Madam Speaker. How can that response in any way be considered an answer to the question? If you would like me to I will read it again. It was about the OECD report that concludes that biofuels have limited benefit in reducing emissions about the responsibility of biofuels for the 30 percent increase in international food prices and about reports from other organisations. If you are to allow that response as an answer to a question then a Minister can effectively talk about any old thing and you will say that it addressed the question. 
Hon Dr Michael Cullen 
: The Minister has pointed out that the member who asked the question is confused about the difference between sustainable biofuels and non-sustainable biofuels and that that confusion was interpretative of the National Party’s approach to the entire climate change area. Unfortunately politics goes both ways in this House not just from there to here. 
Madam SPEAKER 
: I know that members may at times feel frustrated with the answers but members cannot require a specific answer to a question. Often the questions are long and prefaced by many statements and therefore the answers they get are sometimes not satisfactory. In this instance the answer did relate to the question. It may not have satisfied the member but it did address it. 
Hon Dr Nick Smith 
: How can the Minister justify the cost identified in the OECD report on biofuels of between US$960 and US$1700 per tonne of greenhouse gas emissions saved; and why would any Government want to impose this cost at a time when inflation is at the worst it has been for 20 years and families are under record budget pressure? 
Hon DAVID PARKER 
: Because not all biofuels are to that effect. Dr Smith has already been outed for misrepresenting the advice given to the select committee. It is now clear that with the current prices of oil sustainable biofuels can be brought forward at or below the current cost of oil-based alternatives. 
Hon Dr Nick Smith 
: Can the Minister confirm to the House whether he has a majority in Parliament to support the Biofuel Bill given that the compulsory requirement is due to take effect in just 8 weeks’ time? 
Hon DAVID PARKER 
: I could if I desired to but I will not. 
Peter Brown 
: Is the Minister aware of the submission made to the select committee by the Automobile Association and noting that the association represents one million - odd motorists in this country can he advise whether cognisance will be taken of its recommendations? 
Hon DAVID PARKER 
: The Automobile Association raised proper concerns about biofuels at some levels being incompatible with vehicles. It is clear that biofuels at the levels that are proposed currently which are similar to the biofuels that are already being delivered around the country at a number of locations will not cause a problem. 
Hon Dr Nick Smith 
: Can he explain why under the Government’s biofuels policy there is a 42c a litre advantage of ethanol over bio-diesel when both officials and the select committee concluded that there is no justification for that bias? 
Hon DAVID PARKER 
: The select committee reported the bill back in that form. 
Jeanette Fitzsimons 
: Can the Minister confirm that during the mere 10 months before detailed sustainability regulations come into force those selling biofuels in New Zealand will have to report publicly on their origin and on how they are consistent with the sustainability principles of the Act; and does he think that any firm would be stupid enough to try to foist on to the New Zealand public biofuels that contribute to world hunger given the Act that is about to come into force and given the wide publicity about the kinds of biofuels that are used overseas? 
Hon DAVID PARKER 
: The question makes the point quite well but I would also re-emphasise what I said in response to an earlier question—that is without this legislation of course those protections do not exist. 
Jeanette Fitzsimons 
: I seek leave to table the Green Party’s contribution to the Biofuel Bill new section 34GA which shows that biofuels will not be able to contribute to— 
Document by leave laid on the Table of the House. 
Hon Dr Nick Smith 
: I seek leave to table the report of the OECD on biofuels urging Governments not to proceed with such— 
Documents by leave laid on the Table of the House.