Noel Dempsey (Meath, Fianna Fail)

Fine Gael has suggested it would provide a community dividend for those communities located close to new infrastructure that will act as compensation for those living close to important renewable energy infrastructure. This is already happening and will be expressly included in the planning code in the strategic infrastructure Bill that will be published shortly.

The Government's objective is to reward and empower communities in developing their own renewable energy industries and enable individuals, as well as the business and industrial community, to avail of cheaper and cleaner renewable energy heating systems. The best way to ensure the acceptability of such infrastructure in any area is to have proper planning structures in place and to ensure that local communities can share in the benefits of any development.

Our policy to integrate renewable energy with the development of the rural economy is particularly evident in the development of renewable transport fuels. Biofuels offer major potential to support the development of the rural economy. Deputy Connaughton referred to this point. They also provide one of the few opportunities to effect a meaningful reduction of emissions in the growing transport market.

The original pilot mineral oil tax relief scheme for biofuels has resulted in the emergence of eight innovative biofuels projects which will produce 16 million litres of biofuels by the end of next year. Following on the success of this initiative I agreed with my colleague, the Minister for Finance, a further targeted package of excise relief valued at €205 million. This was announced in the last budget. The new excise relief programme will be rolled out between now and 2010 and will enable us to exceed 2% of market penetration by biofuels by 2008.

Our 2% target can be met from energy crops based on existing land use patterns. I am working with my colleague, the Minister for Agriculture and Food, to encourage and support a change in land use patterns to achieve even more ambitious targets. However, in the short term it should be noted that any target above 2% would most likely be met through imports of biofuels or a change in crop production leading to imports of feedstocks. I am, therefore, surprised at Fine Gael's policy commitment to remove all excise duty on biofuels. If Fine Gael's aim is merely to replace existing food crops for imported food crops or to replace existing fossil fuels with imported biofuels——

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