Restrictions on used vehicle imports are blamed as one of the reasons for the low use of biodiesel in New Zealand.
The Government has extended a grants scheme to encourage increased production of the alternative fuel.
But a South Canterbury arable farmer and contractor Jeremy Talbot, who's also regional transport spokesperson for Federated Farmers, says the Government could make a bigger impact by removing its own import restrictions.
He says legislation enacted in 2007 effectively banned any used bio-fuel vehicle manufactured before 2006.
Mr Talbot also says the fact that most newer diesel vehicles are far less compatible for using biodiesel blends, is compounding the problem.
He says he's written to Transport Minister Stephen Joyce complaining about the import restrictions on used diesel vehicles and was told in reply, that the reason was to help the new car industry survive.
Industry agrees vehicles harder to get
The motor industry concedes clean exhaust standards introduced a few years ago have made it harder to get biodiesel used widely by trucks and other vehicles. But it says the problem will fade with time.
The previous Government blocked the import of vehicles whose exhausts emissions did not meet a standard adopted in Japan in 2005.
The industry says vehicles that did meet this standard were recommended by manufacturers not to be run on more than 5% biodiesel.
An industry official concedes this means New Zealand gains on the clean air front, but loses on the greenhouse gas front.
