Denis Naughten (Longford-Roscommon, Fine Gael)

I had hoped the Green Paper would give more detail on the biofuel sector. I congratulate the Minister on the targets being set for 2010 and 2020 on renewable energy and biofuels but there is no detail on how we might kick start the industry to ensure we reach those targets.

Two critical steps must be taken immediately, the first of which is the establishment of grants for biomass and biofuel crops. At present a huge up-front investment of €3,000 per acre is required to establish an energy crop. Farmers will get this back over 20 years but it is frustrating that the same recoupment is possible from forestry, where farmers receive afforestation grants with built in incentives that are not provided for energy crops such as willow and miscanthus.

A number of farmers pointed out to me at the National Ploughing Championship that there was no mechanism in place to pass on carbon credit savings to those using or producing biomass products. We must address this if we are to develop a renewable energy biofuel sector. It is clear that farmers and biofuel processors are interested in developing the sector and that there is huge potential but there is no blueprint for how we go from where we are to reach those targets by 2010 or 2020. The Green Paper ignores this area when it is vital for us to set out the steps that will be taken by the Government to reach them. Unless we do this, we will not develop an industry. The Minister's failure to take a more active role by using the closure of the sugar industry as a vehicle for developing a renewable sector through the production of ethanol was disappointing. The debate on energy should have formed part of a restructuring of the sugar industry.

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