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Subsidy on imported biofuels should be scrapped

Subsidy on imported biofuels should be scrapped – Commissioner

The subsidy on biofuels made from imported ingredients must be removed, said Dr Jan Wright when presenting her submission on the Sustainable Biofuels Bill to the Local Government and Environment Committee today.

“I strongly support the intent of this Bill to ensure only environmentally friendly 'good' biofuels are available for sale. But we can only be sure New Zealand-sourced biofuel falls into this category.”

“Therefore, I am recommending changes which distinguish between New Zealand and imported biofuels. I have also asked the committee to investigate removing an existing subsidy for those biodiesels made locally from imported ingredients.”

“Currently, biodiesel would get the subsidy, even if it were made from palm oil grown on cleared Indonesian rainforest. This is simply ridiculous. This subsidy for biofuels made from imported ingredients must be scrapped.”

“Biofuels can play a part in replacing petroleum-based fuels, but must not do so at the expense of the environment.”

The full submission is available on our website http://www.pce.parliament.nz/

ENDS

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