Tommy Broughan (Dublin North East, Labour)

We have always planned for this issue. The former leader of the Labour Party, Mr. Spring, who distinguished himself as a Minister for the Environment, took the first steps towards ending Ireland's dependence on oil.

The new EU strategy presented on the 8 February calls on each member state to take more action to reach the 2010 target of 5.75% of market share, a modest aim. The next Government should be even more ambitious. The EU programme makes some useful proposals but I am still waiting for the Minister to tell us when he plans to introduce them to Ireland.

Internationally, even an old fashioned politician like President Bush has extolled the virtues of biodiesel, seeing it as an interesting opportunity for America and the rest of the world. A number of countries have tried proactively to address oil dependence. In the EU as a whole, biodiesel output rose by 65% to 3.2 million tonnes in 2005, making the bloc the world's largest producer of the green fuel, according to the European Biodiesel Board. Germany is the top biodiesel producer, with an output of 1.6 million tonnes in 2005, followed by France and Italy. The Czech Republic and Poland also have interesting levels of biofuels production. By adopting Fine Gael's proposals, we will only be starting on the road towards ending our dependence on oil.

Brazil stands out in terms of biofuels. As far back as the mid-1980s, Brazil had a thriving ethanol industry which made use of the country's plentiful sugar cane resources. The industry shrank somewhat in the late 1980s and early 1990s but in 2003, the Brazilian Government decided that a new generation of alcohol powered cars should be taxed at 14%, instead of the 16% rate for exclusively petrol powered vehicles. Brazil's decision demonstrates that, if biofuel crops are to be grown or clean energy vehicles to be driven, incentives are needed. President Luiz Inaciao da Silva of the Workers' Party has stated that he wants Brazil to become the world leader in renewable energy. We could learn a lot from the Brazilian example.

The United States has also begun large-scale biofuel developments. The issue of refining biofuels will have to be addressed through capital investment programmes. The US bought cheap oil for such a long time that, as can be seen on American news programmes, the price of imported oil is beginning to hurt and the country is beginning to respond. We should emulate the many other countries that have embarked on the path set out by the motion before us.

What will happen in the aftermath of the plant closures in Mallow and Carlow? Many people believed Carlow represented a lost opportunity. I received numerous e-mails and telephone calls from Labour Party members in Munster asking whether the Government planned to take action with Greencore, a privatised State company. The fermentation and distilling machinery in Mallow is expensive and critical to the production of ethanol from sugar beet. I ask the Minister of State at the Department of Agriculture and Food, Deputy Brendan Smith, to address this issue because we need to know what is happening.

The Labour Party believes that a renewable fuels obligation should be introduced. Last year, the UK Government moved to boost biofuel use in cars by bringing forward a renewable transport biofuels obligation to ensure that 5% of all petrol sold in the UK would come from renewable sources by 2010.

An interesting discussion was held by the Committee on Communications, Marine and Natural Resources in respect of a comparison between excise duties and renewable obligations. Some of the committee's members believe a renewables obligation is the preferable option because that would put pressure on oil companies to roll out a biofuels network, whereas although excise duty relief is important for consumers, it would mean a loss in revenue to the Exchequer. An academic study conducted by UCD on stimulating the use of biofuels in the European Union, which merits close reading, found that excise duty relief is a key factor in persuading consumers to use biofuels.

I support the motion in general terms and commend Deputy Durkan on bringing it forward. It is timely and would be progressive. I urge the Minister, even in the dying months of this Government, to try to launch a dynamic renewables strategy.

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