KEY POINTS:
The Government has conceded its high-profile biofuel push may have to be delayed as officials scramble to make sure the new fuels that come into New Zealand don't do more harm than good.
Climate Change Minister David Parker yesterday said the start date of legislation that makes oil
companies start selling a small but progressively increasing amount of biofuel might have to be put back.
The biofuel bill, now before a select committee, proposes to make a small amount of biofuel start flowing from petrol pumps as early as July 1.
"We may have to delay it, but we're talking months rather than years," Mr Parker told the Weekend Herald.
"It's important we get them right rather than do it too fast."
Problems have arisen with the legislation as debate rages overseas about whether some biofuel production is causing food shortages and rainforest destruction.
Not all biofuels are made in an unsustainable way, and Gull has been quick to defend the ethanol product made in New Zealand that it is already selling at its service stations.
Concern centres on some of the overseas biofuel products that major oil companies could import here in order to fulfil their biofuel obligations.
The Greens have already insisted that a sustainability clause be added to local legislation so that those fuels cannot be used, but officials have not yet worked out an environmental standard by which the fuels can be judged.
According to National MP Nick Smith, officials have advised that might not happen for some time yet - and it could be 2011 before such a regulation is put in place.
New Zealand officials have been looking overseas to examine other countries' environmental standards but have discovered they are at the forefront of developing something that isn't yet common internationally.
Political support for the biofuel legislation appears shaky unless the issue can be sorted out, but Mr Parker was yesterday confident it would be resolved eventually.
"These sustainability issues are real, that's why we've got the regulation-making power in the legislation," he said.
"But I accept that it's more desirable that we firm up on that before it comes into effect."
Development of biofuel products in New Zealand has been slower than expected partly because the economics of doing it have changed as the United States offers controversial subsidies in certain areas.
Mr Parker said that was another reason to potentially slow down on the implementation of biofuels here.
Greens co-leader Jeanette Fitzsimons said there probably did need to be a delay on the legislation for a few months, but she urged officials to get the issue sorted out more quickly than they had indicated they would.
"The thing is the minister wants to fix it, I want to fix it," she said.
"Officials just have to be told to pull finger and fix it."
Several oil companies and other submitters have requested the select committee examining the bill delay the start date.
