Tom Parlon (Laois-Offaly, Progressive Democrats)

We will work closely with the Commission and member states in achieving any change needed but Ireland cannot make these changes unilaterally. An alternative in the longer term would be to introduce a biofuels obligation. Such a system takes considerable planning and would not necessarily support Irish biofuels developers because two thirds of Irish transport fuels are already imported fully refined. We need to ensure policies in these areas are fully integrated and fully thought out.

The Government's policy is to support the development of a new biofuels sector through a targeted excise relief and capital funding programme. The programme will deliver quantities of biofuels that can support and develop the agricultural sector, ensure that biofuels comply with EU standards and provide an opportunity for Ireland to develop a biofuels sector that could ultimately compete on the European market.

Deputy Broughan also mentioned the EU biomass action plan. Ireland has engaged proactively with the Commission in developing its biomass action plan and strongly supports this initiative. The Minister for Communications, Marine and Natural Resources intends launching a major bioheat grants programme in the coming weeks which will assist commercial and industrial users to switch to lower cost, cleaner biomass heating systems. This in turn will stimulate demand and is one of the key recommendations of the bioenergy strategy group whose report will be published in the coming weeks. That group was established by Government, comprises representatives of all the relevant Departments and interests as well as industry representatives, and has produced a concrete series of recommendations to promote biomass development across the entire processing and supply chain in Ireland.

We will continue to work closely with the European Commission on the development of new opportunities for bioenergy production across the electricity, heat and transport sectors. Working with our European colleagues, we will press for new and ambitious policies to encourage greater use of biomass resources across Europe in line with the strategic objectives of the European Commission's Green Paper.

The development of a sustainable energy economy requires us to pursue two key policy objectives: renewable energy and energy efficiency. The Government is giving priority to increasing energy efficiency significantly and through Sustainable Energy Ireland is making a major contribution to increase energy efficiency through its various programmes. The industry energy programmes, energy awards, public sector, house of tomorrow and warmer homes programmes are all resulting in greater awareness and lower emissions from the industry, commercial, public and domestic sectors.

Deputy Olivia Mitchell noted that we had done nothing on energy efficiency or renewable energy in the building of new houses.

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