Hobbs Marian: Questions for Oral Answer — Questions to Ministers Questions to Members 
Hobbs Marian: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:648;Page:16819] 
9.  
Hon MARIAN HOBBS (Labour—Wellington Central) 
 to the  
Minister of Energy 
: What recent reports has he received on the impact of biofuels on fuel prices? 
Hon DAVID PARKER (Minister of Energy) 
: 
 I have seen a briefing from the Ministry of Economic Development to the Local Government and Environment Committee that advises that with the recent increases in the price of oil the biofuels obligation is likely to lower fuel prices by around 1c per litre. 
Hon Dr Nick Smith 
: Yeah right! 
Hon DAVID PARKER 
: Dr Nick Smith received that briefing yet he continues to use out-of-date information to claim that biofuels will cause fuel prices to rise. This proves once again that National will oppose sustainability initiatives no matter what evidence is put before it. 
Hon Marian Hobbs 
: What other evidence does the Minister have that biofuels can be sold more cheaply than normal fuels? 
Hon DAVID PARKER 
: The most compelling evidence— 
Hon Dr Nick Smith 
: Yeah right! 
Hon DAVID PARKER 
: —which again Dr Smith denies is that Gull Petroleum is already selling a 98-octane blend of petrol and bio-ethanol for less than the price charged by other companies for high-octane fuels that do not contain any biofuels. In addition I have also seen advice from a number of local bio-diesel producers who say they can produce bio-diesel from tallow and break-season oilseed crops at prices that are now competitive with those of traditional diesel. 
Hon Dr Nick Smith 
: Why does the Minister make the ridiculous claim that having a biofuels sales obligation will reduce the cost of fuel when of course people would buy it anyway without compulsion if it were cheaper; and can he confirm the Christchurch  
Press  
report today that Environment Canterbury is abandoning its bio-diesel buses because they have become “a casualty of economics” in that the price of bio-diesels has become so high that the cost to the ratepayer is too great? 
Hon DAVID PARKER 
: In respect of the Christchurch situation I understand that those biofuels are produced in Auckland and shipped in small quantities to Christchurch which would explain why they might be expensive in that particular situation. In respect of why we need mandatory obligations to bring forward this new infrastructure few producers will commit to the cost of the change in infrastructure if they do not have guaranteed uptake of their product because otherwise they would face the risk that they would produce these biofuels and the oil companies would not buy them. 
Hon Dr Nick Smith 
: I seek leave to table a transcript of the Radio New Zealand National interview this morning in which the Minister said the tallow price has dropped. 
Madam SPEAKER 
: Leave is sought to table the document. Is there any objection? Yes there is objection. 
Hon Dr Nick Smith 
: I seek leave to table information from the Parliamentary Library that shows that the price of tallow has soared— 
Madam SPEAKER 
: Leave is sought to table that document. Is there any objection? Yes there is objection. 
Hon DAVID PARKER 
: I seek leave to table an email from the Ministry of Economic Development to me today that shows that the price of tallow has dropped by— 
Document not tabled.