M J Nolan (Carlow-Kilkenny, Fianna Fail)

While this Fine Gael Bill is well intentioned, as the Minister outlined, the Bill as currently drafted would not stand up to European scrutiny and would contravene the European fuel quality directive. In his contribution to the debate last night the Minister confirmed the thrust of both sides of the House is in the same direction. On Monday last, he announced the Government's intention to introduce a bio-fuels obligation which would ensure bio-fuels would represent 5.75% of Ireland's transport fuel market by 2009 and 10% by 2020.

In recent years in particular we have seen a greater urgency in the approach of all political parties and the public to fuel consumption. In 1970 we had approximately 500,000 vehicles on the road. In reply to a recent Dáil question I tabled, it was revealed the number of vehicles on our roads has increased to approximately 2.25 million. The knock-on effect of that is a five-fold increase in the amount of fuel used by vehicles here. This phenomenon is not unique to Ireland. We have seen a significant increase in the number of vehicles in the developed world. This increases the urgency to find fossil fuel, which is a finite resource. We will not see the implications of the exhaustion of fossil fuels but our children must face up to that fact. It would be irresponsible if we did not ensure a move from fossil fuel to a bio-fuel culture.

I am pleased the Minister for Agriculture and Food has become involved in this debate. The Minister has introduced a new bio-enegy scheme providing for establishment grants of up to 50% of the costs of miscanthus and willow on set-aside land, which has been in receipt of European aid of €45 per hectare. In Carlow, farmers have had to cease growing sugar beet and the number of crop options is reducing every year. The Teagasc research station at Oak Park has done much in the area of bio-fuels, including miscanthus and willow. Initial capital costs are prohibitive but the introduction of the scheme will alleviate some of the costs of growing these crops. Farmers can receive up to €1,450 per hectare in establishment costs, with the balance to be invested by farmers. The scheme provides opportunities for farm diversification and encourages farmers to consider these crops as an alternative. The closing date for receipt of applications is 28 February 2007.

The Minister for Agriculture and Food will also introduce a top up payment of €80 per hectare in 2007 to support energy crops. The payment is in addition to the EU energy crops premium of €45 per hectare, bringing the total payment to €125 per hectare. This Government has doubled the renewable electricity capacity in the past two years. We will exceed the 2010 targets and these have been revised from 13.2% to 15%. The Government is conscious of its obligations.

The Government has also established a ministerial bio-energy taskforce, comprising Ministers from seven Departments. It has met on a regular basis with the goal of drawing up a national biomass action plan, to be published in the near future. The Government has also published five major studies on renewable energy, bio-energy and ocean energy to inform public policy. The public is interested in this matter, which should be the subject of further debate.

The Government has published an energy policy Green Paper, setting out the framework for a national energy policy in the medium to long term and proposing new targets for renewable energy. A White Paper on energy is being finalised and will provide a roadmap for the development of Ireland's energy sector until 2020. Studies and consultations over the past five years are informing policy development and leading to several innovative programmes for renewable energy.

Much work is being carried out on wind turbines. Questions remain over the proliferation of wind turbines but this is an area that deserves more investment. We have a long way to go to meet the standards of Britain, France and Scandinavian countries. The 2005 pilot bio-fuels excise relief programme resulted in eight projects. A number of the successful companies are anxious that they commence as soon as possible. It is important the Government focuses on bio-energy and substitutes for fossil fuels. As a Parliament we cannot sidestep our responsibilities.

I welcome the Opposition's well-intentioned Bill but it cannot be accepted for the reasons explained last night.

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