The Government's sales obligation, starting in April 2008, would require 3.4 per cent of all fuel sold by oil companies to be biofuel by 2012. The obligation will likely be reached by the widespread sale of petrol and diesel blended with varying percentages of biofuels.

The AA has advised the Government that motorists' support for the introduction of biofuels is conditional upon:

• Biofuels not costing more than existing fuels or resulting in an increase in the cost of existing fuels through cross-subsidisation
• Biofuels not compromising vehicle performance, including fuel economy
• Biofuels not damaging engine components or invalidating vehicle warranties
• Biofuels being clearly labelled at the pump, and 100 per cent mineral grade petrol being retained to provide motorists with incompatible vehicles with an alternative
• Biofuels being extensively tested to ensure that these concerns are fully resolved before biofuels are introduced for public sale

Undertaking an extensive publicity campaign to inform motorists of the cost and benefits, and which vehicles are compatible with which fuel blends

Mike Noon, AA General Manager for Motoring Affairs says "the introduction of biofuels can be a positive step for New Zealand, however solutions have to be found to the outstanding technical, infrastructure and cost issues."

"Introducing biofuels without fully resolving the concerns would destroy public confidence in them. You only get one chance to get it right and the introduction of the last major fuel grade change, from leaded to unleaded petrol, was a disaster."

"The AA urges the Government to take the time to ensure the introduction of biofuels is well planned and supported with clear information for motorists."

Mr Noon says the AA welcomes the Prime Minister's announcement that the government fleet is being reviewed and all future ministerial vehicles will at least meet the Euro IV standard.

"It is great to see the Government leading by example and they should be congratulated for doing so. Making the Government fleet more fuel efficient over time is an excellent move but the AA urges another step - all government fleet drivers should receive training on how to drive in a fuel efficient manner."

"Keeping your speed down, driving smoothly, maintaining a good following distance and choosing the highest gear possible can have dramatic effects in reducing fuel consumption - up to 30 per cent for some drivers with a heavy right foot," says Mr Noon.

For more information contact

Mike Noon
General Manager, Motoring Affairs
New Zealand Automobile Association
T. +64 4 931 9984
M. +64 21 659 704
E. mnoon@aa.co.nz
W. www.aa.co.nz

The New Zealand Automobile Association is an incorporated society with over one million members. It represents the interests of road users who collectively pay over $2 billion in taxes each year through fuels excise, road user charges and GST.