A British biofuels company is blaming government regulation for its decision to abandon plans for a $100 million investment in New Zealand.
Argent Energy has scrapped plans to build a biofuels plant, claiming a tax break the government gives on imported ethanol amounts to a subsidy.
Managing director Dickon Posnett says it distorts the market, making it uneconomic to set up a bio-diesel plant. He says it is about the time the government levelled the playing feed if it is serious about biofuels.
Posnett says New Zealand is the only country which has regulated against a domestic industry in favour of imports.
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