Martin Ferris (Kerry North, Sinn Fein)

I support the general thrust of this motion. Sinn Féin has advocated an even more radical approach focused on production as well as the fiscal incentives proposed in the motion. The production of the energy crops necessary to produce biofuels is a vital component. It is welcome, therefore, that the Government has altered its approach to the grant scheme covering such crops and removed the previous exclusion of sugar beet. I suggested this two years ago and pointed to the potential of sugar beet crop and the current processing facilities at Carlow and Mallow for the production of biofuels, given that the sugar sector has been sacrificed at EU level.

The importance of the production aspect was highlighted in the report on biofuels strategy published in 2004 by Sustainable Energy Ireland, which pointed out that the State would only be capable of producing 23% of the requirement if the 2010 target of 5.75% biofuels was to be met. The report concluded, therefore, that substantial imports would be required. In other words, a large gap could be filled if an appropriate grant structure was in place and if substantial research and development was conducted to encourage farmers to move into this area. The redirection of the sugar beet crop accounts for part of this but the growth of energy crops could also have been more attractive to farmers since the introduction of the single farm payment. In the new context, where that source of funding is no longer dependent on the old subsidies system, farmers have more freedom to plan their production to meet new and potentially valuable demands.

Energy crops is one such area. It is also important that Ireland should have its own energy crop and biofuels sector for broader economic reasons. The sugar plants, for example, could provide a viable source of alternative employment, as would the industrial production of these fuels at new locations. It is also vital, especially given renewed concerns over future energy needs and security of supply, that as much of our demand as possible is supplied from domestic sources. If that is not the case, biofuels will become another source for which we will be dependent on imports.

It is also uniquely suited to this country as, unlike with most fossil fuels, we have the potential to supply our requirement for energy crops. This also provides a potentially large alternative new sector for Irish farmers, which might well contribute to a reversal of the current trend in the rapid decline of family farming. As the Sustainable Energy Ireland report highlighted, while difficulties are impeding the expansion of the scope for the growth of such crops, none is insurmountable in the context of CAP reform. As with the inclusion of sugar beet under a grant scheme, therefore, it mainly requires the political foresight and will to ensure those barriers are removed. Above all, they require that this should be made an integral part of a new strategy for Irish agriculture, which is urgently required if the sector is to adapt and prosper under the new order.

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