Turia Tariana: Biofuel Bill — First Reading 
Turia Tariana: Biofuel Bill — First Reading 
[Volume:642;Page:12414] 
TARIANA TURIA (Co-Leader—Maori Party) 
: 
 Tena koe Mr Deputy Speaker. Tena tatou katoa. In simple economic terms this bill is a demonstration of the principle of energy returned on energy invested. The bill amends the Energy (Fuels Levies and References) Act 1989 in order to implement the biofuels sales obligation policy. In doing so it puts into being the equation that energy is required to make energy. The biofuels sales obligation policy will require suppliers of petrol and diesel in New Zealand to also supply a proportion of biofuels up to a level of 3.4 percent by 2012. Basically for every petrol supply provided a certain percentage of biofuel will be included. 
The amendment to the Customs and Excise Act 1996 ensures that biofuel and blends will be free of excise or excise-equivalent duty. In terms of the 3.4 percent by 2012 this is certainly not fast enough from the Maori Party’s point of view. The Maori Party supports the use of alternatives to oil-based fuels to address both the immediate crisis of peak oil and the longer term crisis of climate change. But we must do more as progress is far too slow. Biofuel—the liquid fuel produced from biological fuel sources like vegetable oils animal fats sugars and other food crops—can act as either a substitute for or an additive to petrol and diesel. 
The most commonly used biofuels are bio-diesel and bio-ethanol. Biofuels are a renewable energy source they are non-toxic in the event of spills and they reduce carbon emissions. Of course that all leads to the emissions cycle proceeding rapidly through the atmosphere resulting in less adverse effects on the climate. One would think therefore that there should be a great deal of optimism related to this bill. Soaring oil prices have made biofuels economically viable. Energy demand is predicted to keep soaring the future for oil supplies is constrained and to top it off biofuels are resoundingly eco-friendly or so we are told. 
So what does it all mean? Will the humble tortilla chip become the next black gold? Or will Kellogg’s cornflakes become the new luxury breakfast item? One of the challenges of biofuels is that the energy produced is always less than the energy that created it. The energy utilised in the manufacturing process is lost in the fertilising of the land used to grow the biomass; the irrigation maintenance and harvesting of the biomass—all usually done with oil-dependent heavy machinery—the transportation of the biomass; and the biomass to biofuel conversion. What all this means is that there are difficult choices and decisions around how we can rationalise the viability of the whole process especially in a future that will be energy scarce. 
The Maori Party has advocated for a genuine progress index as providing a measure of comprehensive sustainable and inclusive advancement. We believe that a more comprehensive indicator of progress towards sustainable development would be useful to this debate. When measured by the genuine progress index we find there is a deficit and the production of the biomass overall ends up being uneconomic. So how sensible is that? 
A particularly useful contribution to this debate has come from Cuba and its revolutionary leader Fidel Castro. At the end of March this year Mr Castro warned American President George Bush “against the sinister idea of converting food into fuel.” Mr Castro’s concern was that the United States’ use of corn to make ethanol biofuel to reduce the country’s dependence on foreign oil has already driven up the price of corn and as corn is used as animal feed when the price of corn goes up the price of meat goes up. Given that more land is used to grow corn rather than other food crops their prices also rise. In other words the poor people of the world go hungry while America’s greedy guzzling Chryslers are well fed on biofuel. 
The key issue for us therefore is that the materials used to produce biofuels—[ 
Interruption 
] Did Mr Mapp have something to say? Does the member want to take a call? 
Dr Wayne Mapp 
: When Africa had decent Governments they grew their own food; look at Zimbabwe. 
TARIANA TURIA 
: I thank Mr Mapp for his contribution. 
The key issue for us therefore is that the materials used to produce biofuels must be sustainable and do not have adverse consequences for any other consumer. We would be extremely concerned if actions taken to reduce energy consumption and conserve energy led to food shortages and increased food prices. In New Zealand it appears the single biggest source of bio-diesel could be tallow—an animal fat that is a by-product of meat processing. Likewise bio-ethanol in New Zealand is made as a by-product of the dairy industry. However the worst case scenario would be that increasing the value of biofuels may incentivise farmers to grow biofuels and not food. 
It is in light of such concerns that the International Food Policy Research Institute has issued a warning that in order to make strong environmental and economic contributions and to look after the interests and well-being of the poor we need to take a precautionary approach. Such caution is of particular relevance as we approach 17 October the International Day for the Eradication of Poverty. The theme for this year’s International Day for the Eradication of Poverty—“Working Together out of Poverty”—promotes the concept of a global anti-poverty alliance. 
The Maori Party believes that any further consideration of biofuels must take into active consideration the impact of biofuel production on the lives of poor people as both energy producers and consumers. The regulations in this bill go some way towards giving us confidence in this regard. Included is a regulation that provides for an Order in Council to specify in the future that biofuels having certain characteristics may or may not qualify as biofuels. 
We would hope this will mean that the bio-diesel we use as a substitute for ordinary diesel or the bio-ethanol we use as a substitute for ordinary petrol will meet specified environmental or sustainability standards. We want to make absolutely sure that the green alternative we take on to power our cars buses and trains does not create famines trash rainforests bump up food prices and create a market opportunity for the corporate world to exploit. We want to avoid a fuel versus food trade-off as well as developing an efficient and sustainable bio-fuels industry. The Maori Party is acutely aware that the transport sector is responsible for 45 percent of our greenhouse gas emissions and we appreciate too that as bio-fuels are produced from biological material they are to varying degrees carbon neutral. 
Finally I want to return to Cuba for inspiration as to how we survive peak oil and create alternatives for vehicles and generators through the consistent regulation of modern fuels used in engines including bio-fuels and blends. Mr Beres from Cuba Solar a renewable energy organisation in talking about the challenge facing humanity concluded: “There is climate change the price of oil the crisis of energy and what we must know is that the world is changing and we must change the way that we see the world.” 
It is indeed a challenge to find new ways to reduce energy consumption new ways to conserve energy new ways to address the longer time crisis of climate change and new ways to eradicate poverty and to take collective responsibility for the well-being of future generations. The Maori Party will support this bill in order to open the doors and allow the debate to take place for the new ways to be given life. Kia ora.