Pat Carey (Dublin North West, Fianna Fail)

When ideas are brought forward, they should be well rehearsed because there is always a danger that we might rush in and suggest something that is not fully worked through. My understanding, from those who claim to know of these matters, is that the suggestion that sugar beet could be a significant provider of energy is exaggerated. I would not condemn anyone for suggesting the issue should be explored but we must seriously consider whether it is worth pursuing over a longer term.

Some progress has been made in this area over the past two years. In 2004, the Minister for Finance introduced a relief from mineral tax on pilot projects producing biofuel and testing the technical viability of biofuel as a motor fuel. In the most recent Finance Bill the Minister significantly expanded this provision into a five-year scheme for mineral oil tax relief to commence in 2006 and end in 2010. This will cost approximately €20 million this year, €35 million next year and €50 million in each of the following years. When fully operational, the relief scheme is expected to support the use and production in Ireland of about 163 million litres of biofuels per year.

The developing world is ahead of us in exploiting alternative energy sources. Brazil plans to become self-sufficient in the biofuel sector within the next five years and African and Caribbean countries are seeking to exploit sugar cane as an alternative fuel source.

Energy has shot to the top of the political agenda and will remain there for quite some time. Coherent energy policies are needed in Ireland and internationally. We have to develop innovative and efficient ways of developing new energy sources. I commend the Bill to the House.

See this speech in context