Gilmore Aaron: Energy (Fuels Levies and References) Biofuel Obligation Repeal Bill — Second Reading In Committee Third Reading 
Gilmore Aaron: Energy (Fuels Levies and References) Biofuel Obligation Repeal Bill — Second Reading In Committee Third Reading 
[Volume:651;Page:797] 
AARON GILMORE (National) 
:  
I rise to support the Energy (Fuels Levies and References) Biofuel Obligation Repeal Bill and unlike the previous speaker I will not talk about “our enormous package”. I know a little bit about the biofuels and bio-gas industry. I have been a director and entrepreneur in this industry for a number of years. I have sat here for the last day or so listening to some of the ridicule from members opposite who have been talking about how National is dead against jobs in this industry and dead against issues that would prevent people going out of business. In fact that is entirely incorrect. We are dead against the obligations that exist under the current Energy (Fuels Levies and References) Act. My own experience is that there has been a gold rush of businesses seeking tallow and other fuels to use for biofuel and bio-gas in New Zealand. A lot of work has been done on the so-called standards that were in the existing Act. When we look at them we see that there are a lot of problems with those standards and that they are essentially unworkable. 
I come from a perspective as a former entrepreneur in the sector in talking about some of those things. My own experience is that it has been possible to be successful in setting up bio-gas or biofuel businesses—these things are largely interchangeable because vehicles can run on liquefied petroleum gas that has come from bio-gas or from bio-diesel. We have done that with no help from the Government no obligations and no subsidies—and it works. Equally the international evidence from organisations like the Royal Society is such that— 
Metiria Turei 
: Why the subsidies for big companies then? 
AARON GILMORE 
: Well the member would know that as I just mentioned the companies I am involved with have no subsidies at all. 
Metiria Turei 
: Why the subsidies for the big companies then? That’s your policy. 
Hon Gerry Brownlee 
: That’s exactly what was in the law! That’s what the obligations are all about.  
AARON GILMORE 
: That is exactly what I am saying. That is what the obligations are all about—absolutely. The Royal Society in Britain has talked a lot about the issue of biofuels and the fact that many biofuels may actually cause an increase in climate change. That work has been released by the learned Royal Society of the UK. The use of specific percentages in the short run will only move to increase imports of biofuels from some of these places that we have talked about previously. Yes there is a very good opportunity to create a biofuel and bio-gas industry here in New Zealand. 
Hon Darren Hughes 
: Does this bill help? 
AARON GILMORE 
: Well the current Act does not help at all. That is for sure. All we can say is that there are many smarter ways to deliver what both sides want. We do want to deliver a biofuel or bio-gas industry in New Zealand. It does provide sustainable fuels but what is quite clear is that the current Act with its obligations does not and will not deliver that in time. As I say the current standards are unworkable and we need to make a change by introducing this bill to allow smaller companies with innovative technologies to not be obligated to operate under a system that is unworkable under the existing Act.