New Zealand’s opposition Labour Party has labelled the National Government biofuels a “total shambles”.

Labour’s Associate Energy Spokesperson Chris Hipkins said in a statement: “Energy Minister Gerry Brownlee’s constant blundering is leaving the New Zealand biofuels industry hamstrung.”

As soon as it took office National repealed legislation that would have encouraged the development of a sustainable biofuels industry in New Zealand. Since then Gerry Brownlee has totally failed to develop a workable alternative,” Chris Hipkins said.

“Last year Gerry Brownlee announced a Biodiesel Grants Scheme that he boldly predicted would create 240 jobs, yet only 5 companies have signed up for it, no new companies have signed on since July last year, and less than $200,000 of the $36 million that was set aside for the scheme has been taken up.

“Now Gerry Brownlee has extended his failed subsidy scheme to diesel with a blend of more than 20 percent biofuel, only to then have both the Road Transport Forum and the Motor Trade Association both point out that drivers could risk voiding their vehicles warranties if they use such a high concentration of biofuel.

Another critic of the scheme, Lindsay Fergusson of major domestic biodiesel producer Ecodiesel, had argued that the new scheme would only benefit “fringe producers” and those who were “not the future of the biodiesel industry in New Zealand”.