Gallagher Martin: Biofuel Bill — First Reading 
Gallagher Martin: Biofuel Bill — First Reading 
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MARTIN GALLAGHER (Labour—Hamilton West) 
: 
 It is certainly wonderful to note the enthusiasm on all sides of the House for this very important bill the Biofuel Bill. As a member of the Local Government and Environment Committee I certainly look forward to being on the committee that considers this very important bill as of course does the chair of that committee Steve Chadwick. 
To restate the situation the bill introduces a biofuels sales obligation that will potentially see the widespread introduction of biofuels into our transport fuel mix. Indeed the bill will start in terms of its current proposal with the obligation that 0.53 percent of petrol or diesel content sold be biofuel increasing to 3.4 percent by 2012. Firms will be encouraged to meet that target and those that do not do so will potentially face financial penalties. The bill also changes existing legislation to provide for the consistent regulation of modern fuels used in engines including biofuels and biofuel blends. 
I listened very keenly albeit on the TV monitor to the first reading speech of the Minister in charge of the bill the Hon David Parker which indeed was a very good speech and I think summarised the issues very very well. I have to say that although I acknowledge some of the points that Jeanette Fitzsimons has made and some of the areas that we do need to look at with some caution I am particularly excited and enthusiastic by this legislation and by the leadership that this Government is showing in addressing an overall energy efficiency strategy. Indeed I am delighted that this is part of the Government’s sustainability and climate change plans. 
The point that has been made and made very well by the Minister is that transport is responsible for more than 40 percent of New Zealand’s energy greenhouse gas emissions and of course we are particularly dependent on imported oil and oil products that make up over one-third of our total energy supply. Indeed the Government has taken an in principle decision to set a target of halving domestic transport emissions per capita by 2040 relative to 2007 per capita emissions and of course logically and obviously this will require improved vehicle efficiency continued improvement to public transport and the substitution of some fossil fuels with renewable alternatives. 
I am certainly delighted in the context of talking about this bill about alternative sources of fuel that we are boosting encouraging and putting in major major investment into public transport. That is indeed the most spectacular and dramatic investment in public transport that has been seen in many many years. 
Hon David Parker 
: 1200 percent! 
MARTIN GALLAGHER 
: It is 1200 percent and I know it is not just the Green Party that is enormously impressed with this Government but many people in addition to them as well. That is actually unparalleled I believe in terms of our history. Historians can correct me but I reckon that will be unparalleled for any Government in our country’s history. I note also that biofuels are carbon neutral so will contribute to those emission reductions in transport. Biofuels will also reduce as I pointed out our reliance on oil are better for our air quality and therefore better for human health. 
This bill is only one of a raft of measures—of strategies if you like for climate change a strategy tool box if I can use that word—looking at alternative supplies of energy. Indeed Minister Parker who spoke in the first reading recently visited the University of Waikato in my city and looked at its electric car initiative and the work being done in developing different forms of locomotive power. I want to take this opportunity to say that just the other day I popped into the University of Waikato. The school of science and engineering hosted a wonderful open day and I was taken around by Dr Michael Walmsley and others from the school. It was wonderful to see some of those initiatives at very early stages—New Zealand inventors and New Zealand developers looking at different forms of powering vehicles—and looking at electric vehicles is certainly one of the options. 
The Biofuel Bill in itself is very important legislation but is not the only tool in the Government’s tool box in terms of addressing our obligations to limit the negative effects of climate change. It is certainly not the only tool in the tool box in terms of looking at a range of alternative forms of energy particularly when it comes to transport. But it is potentially quite an exciting part so to speak of that tool box. As a member of the select committee I will be listening with huge interest to what I believe will be a number of very positive submissions from people not just in the science community and the transport community but across the board. I think this is a very good example again of leadership. 
One of the issues that I want to take up which the Minister certainly touched on in his first reading speech and which I think is very important is how we encourage motorists into consumption of alternative fuel sources. The point he made was that it is very very important that biofuels supplied to consumers meet appropriate quality standards so that consumers buy them with the same confidence that they currently purchase petrol and diesel with. I know everyone in the House would agree with that. It is a very obvious and clear statement but it is important that it be stated and restated. Indeed in terms of the legislation where appropriate biofuels will obviously also be required to be labelled so that consumers are suitably informed as to what goes in their vehicle tank. The bill also provides the requirement that no petrol or diesel blend containing 1 percent or less biofuel may be promoted as containing biofuels or as being a biofuel blend. Again that product information and consumer information is very very important. Biofuels and biofuel blends are brought within the scope of the levy that funds fuel-monitoring activities. I think that is an obvious good idea. Responsibility for collecting this levy—I note it is to be known in future as the petroleum and engine fuel monitoring levy—is transferred from the Minister for Economic Development to the New Zealand Customs Service and aligned with the collection of excise duty and the measurement of biofuel sales obligations. 
In the time I have left I think it is very very important to say that along with this legislation there is a really adequate information and education campaign to raise motorists’ and others’ awareness of alternative sources of fuels. This has to be a situation where—believe you me—as a country we work together with industry and we certainly work together with the major transport sector groups to have an outcome whereby we meet those targets. It is very interesting to observe other nations that have a relatively high production of biofuels—for example Brazil and there have been other countries. In a sense—and the Minister David Parker will correct me if I am wrong—I do not think we are necessarily pioneers in this area. There is certainly overseas practice to have a look at. Jeanette Fitzsimons quite correctly gave some words of caution in terms of ensuring that we look at the good and bad and that in our enthusiasm to look at biofuels we also acknowledge that there are some dangers. We need to be very aware of that as well. 
At the end of the day it is really excellent that we are looking at legislation that is addressing the problem posed by the fact that 40 percent of New Zealand’s emissions come from the transport sector. It is a big challenge and a very significant challenge to halve those emissions by the year 2040. Frankly I do not see us as a nation having any alternative whatsoever but to take up that challenge. Again I want to compliment this Government and the Minister in what I think is superb leadership in this area. It is excellent that we have such a very hard-working Minister. I will also say as a member of the select committee that all members of the committee will be considering this bill with enthusiasm. 
Dr Wayne Mapp 
: You don’t have to fill up all the 10 minutes. 
MARTIN GALLAGHER 
: I know Dr Wayne Mapp is just as enthusiastic for this bill as I am. We look forward to its coming to the select committee. In his heart of hearts Dr Mapp acknowledges the wonderful leadership of this Government. Thank you Mr Deputy Speaker.