Jimmy Devins (Sligo-Leitrim, Fianna Fail)

I am thankful for the opportunity to speak on this important issue. We are all well aware in this House of the impending shortage of fossil fuel. Recent increases in petrol and diesel prices are a salutary reminder of how exposed Ireland is to any variation in worldwide oil prices, which we can do absolutely nothing about. The upward spiral in petrol costs poses a major difficulty to the continuing successful management of the economy which this Government has been undertaking for several years. That is one potent argument in favour of the development of alternative fuels. Equally potent and perhaps more important in the long term, is the ever-present and increasingly real threat of global warming. Fossil fuels produce carbon dioxide, which hastens global warming with potentially disastrous effects on the world climate, and by implication on economies and lifestyles. It is therefore essential that a coherent, viable and impenetrable energy policy is in place in Ireland,

The Minister for Communications, Marine and Natural Resources, Deputy Dempsey, has such a policy in place, as he outlined in the debate last night. Time does not allow me to discuss in detail the various innovative and sustainable developments the Government has initiated. I will confine myself to two important measures. The first of these is the €205 million biofuel excise relief package announced in last year's budget. Three different types of biofuel are available. In the budget last December a five-year package of excise duty relief was introduced. Uptake of these tax reliefs is driving the production of biofuels. At present it appears the level of production is such that by 2008 we will have a market share of more than 2% in biofuels.

This represents a real achievement when it is considered that Ireland is starting from a very low base. Already there has been enormous interest in the scheme and currently various manufacturing facilities for biofuel are up and running throughout the country. There is no doubt that the potential for transfer from fossil fuel to biofuel is enormous. I urge the Minister to allow further excise relief on biofuels being placed on the market in the near future. A recent report on biofuels suggested that excise relief is the most effective short-term measure for developing this market. Other initiatives, however, such as renewable energy obligations, might be more beneficial in the long term. I am sure the Minister, Deputy Dempsey, will give due consideration to all this implies.

The second measure is the recent announcement by the Minister of grants payable to domestic homes. These grants will allow individual householders to obtain money for the installation of technologies to use renewable energy. Grants can vary from €1,100 to €6,500, depending on the technology being used. For example, there is a grant of €4,200 for the provision of a wood chip or pellet boiler to provide heating in a house. Ireland has an excellent climate for growing timber. There has been an enormous increase in the Irish forestry sector and already wood residue is being used to supply heat in various situations. This is a renewable energy source provided from within Ireland and is a good example of bio-energy. The grant of €4,200 towards the provision of boilers that use wood residue would be of great help to householders who want to use a renewable energy source while at the same time saving a considerable amount of money in the future as the price of oil and gas continues to rise. I understand there has been a considerable take-up of these greener home grants and this reflects the willingness of the public to embrace renewable energy technology.

I congratulate the Minister on his initiatives. I urge him to continue down this road and I commend the Government amendment to the House.

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