Tom Parlon (Laois-Offaly, Progressive Democrats)

I am delighted to have this opportunity to address the House on the issue of renewable energy development in Ireland. The Minister, Deputy Noel Dempsey, and the Minister of State, Deputy Kitt, outlined many of the important initiatives already introduced as part of this Government's integrated strategy to promote a sustainable and renewable energy development in Ireland.

The Minister, Deputy Noel Dempsey, gave details of our ambitious biofuels excise relief programme and noted that the 2005 pilot mineral oil tax relief scheme for biofuels has resulted in the emergence of eight innovative biofuel projects which will produce 16 million litres of biofuels by the end of next year. A further targeted package of excise relief valued at €205 million was announced in the last budget. The new excise relief programme, underpinned by capital grant aid, will be rolled out from this year to 2010 and will enable us to exceed 2% market penetration by biofuels by 2008. The programme, which was developed and supported by several Departments working in close consultation, will support the use and production of 163 million litres of biofuels each year when fully operational.

Deputy Broughan mentioned that the bulk of the money for the biofuels excise relief programme would be rolled out in 2008. If he would like us to front-load this financial commitment in 2006, he would deliver most of the excise relief to imported biofuels. Few biofuels developers can produce 163 million litres of biofuels in the space of less than a year since the programme was announced. Deputy Broughan is forgetting that large-scale production facilities will require finance, planning and other permissions which do not happen overnight.

I note that Fine Gael calls for a mandatory blending of 5% bioethanol in petrol and 2% of biodiesel in diesel at all fuel outlets. While I have no difficulty with this aim which is worth pursuing, the Opposition is out of touch with EU legislation which specifically precludes such a provision.

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