Tommy Broughan (Dublin North East, Labour)

According to the quarterly renewable energy country attractiveness indices from the consultants Ernst & Young, Ireland is now ranked in 12th place, dropping six places since 2005. This league table is based on an assessment of national renewable energy markets, especially the fiscal supports and tariffs that are in place, a state's renewable energy infrastructure and the potential renewable resources that a state possesses. Ireland's ranking in the long-term index is especially disappointing because this index reflects unexploited resources of a state and Ireland has very significant sources of untapped wind and wave power. This indicates that the mechanisms in place to facilitate the development of renewable resources are simply not in place to allow greater investment in the renewables sector.

Spain and the US remain at the top of the long-term renewables index for attracting investment in the renewables industry because both continue to show strong growth in the renewables sector and attract the bulk of capital investment. Several countries from emerging markets, including India and China, also figure prominently as they greatly expand their renewable energy resources.

In December 2005, the European Commission presented a biomass action plan that aims to double the use of bio-energy sources, that is, energy derived from wood, waste and agricultural crops, in the EU's energy mix by 2010. At the moment, about 4% of the EU's energy needs are met through biomass. The European action plan advances 31 measures to promote the use of biomass in heating and cooling, electricity production and transport. The plan proposes that all member states develop their own national biomass plans. Germany, the UK and the Netherlands already have, or are preparing, such national action plans.

Ireland had been receiving support under the alternative energy requirement programmes up until last year, and we were given some funding under the new renewable energy feed in tariff. However, biomass is still a very underdeveloped resource in Ireland and accounts for a derisory amount of our energy system. The adoption of a national biomass action plan should be prioritised. Given the vast changes that are taking place in agriculture and given the needs for energy, the Government should put energy at the top of its agenda and develop a biomass energy plan following consultation with farming and energy interests.

There has been little advancement in solar power under the current Minister, even though we read of many exciting developments abroad. I was disappointed to hear him state that solar powered water heating units had been installed in just 687 homes out the 1.7 million in the State. The greener homes scheme includes grant aid for homeowners if they wish to install a solar thermal space. However, it gives no support or encouragement to business users or larger operators who may be interested in developing their solar power capabilities.

The Government's record on biofuels is deplorable. President Bush recently admitted that his country is addicted to oil and the same could be said for Ireland. Our transport sector is 100% dependent on imported oil. In other countries, rapeseed, corn, soya beans and other crops have been used to produce biodiesel and bioethanol.

I commend the Minister, Deputy Noel Dempsey, on introducing a biofuels mineral oil tax relief last August, which allows for €3 million in forgone excise duty per year. However, this was only a pilot project. The 2006 budget introduced an excise relief package for biofuels of more than €200 million, but an analysis of the figures reveals a pathetic level of investment, with €20 million to be spent this year, €35 million next year and €50 million in the following year. In other words, €150 million will be spent during the lifetime of the next Government. Almost certainly, the next Government, regardless of its composition, will have more ambitious and determined programmes because the current investment is too little too late.

In 2005, the Government failed to comply with the European Commission directive on the development of alternative fuel sources which required all EU states to bring the proportion of biofuels in the fuel mix to a minimum of 2% by the end of 2005 and 5.75% by 2010. Even with the introduction of the aforementioned programmes, we are nowhere near that target. The Irish Government has opted instead for a meagre 0.06% biofuels target for the period until 2005. A Minister in the previous Government was well known for his zero tolerance but this is a zero achievement Government in terms of biofuels. At the end of these programmes, we will still only produce approximately 165 million litres of biofuel. The most recent figures released by the Minister indicate that Cork City Council is using small quantities of biofuels in its transport fleet, which is commendable. However, when the Minister announced this initiative at a meeting of the Committee on Communications, Marine and Natural Resources, he also revealed that our national achievement in biofuels stands at 0.00002%.

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