Martin Ferris (Kerry North, Sinn Fein)

I wish to share time with Deputies McHugh, James Breen, Connolly, Healy and Eamon Ryan.

I welcome the Bill as an intelligent proposal to promote the use of biofuels. The Government has set ambitious targets for the use of such fuels as a component of vehicle fuels. However, there is little evidence that the work which needs to be done to achieve those targets is being carried out. Even the increase in energy grants announced last week is insufficient and it excludes farmers who are part of REPS. The reality is, therefore, that there is little likelihood that sufficient numbers of farmers will be attracted to working in an area in which many have expressed an interest or that the large amount of lands required for growing the relevant crops will come on stream.

I am aware of one estimate which indicates that it would require 400,000 hectares of rape seed to produce sufficient fuel to meet less than 2% of vehicle fuel demand. That is more than the current area under crops in this State and it represents just under 10% of the country's overall agricultural area. This is an indication of the scale of production that would be required.

Traditional crops are not the only option. There would, however, be scope to greatly expand the area devoted to them, particularly if farmers were permitted to do so while retaining their single farm payments.

Forestry is another potential area for the production of biomass and Teagasc forecasts it will double by 2025. There is also great potential in the significant amount of set-aside land which could be used to grow particular types of plant. Given the large area of land that is unused or underused, much more attention should be given to encouraging farmers to grow energy crops such as willow. Where necessary, we should be arguing for changes to EU regulations that present an impediment to the use of such land, with due regard to the SSEs. The US, where energy crop production has greatly expanded, is considering allowing 36 million acres of set-aside land to be made available for this purpose. Similar changes need to be introduced in Ireland.

While the potential exists to expand energy crop production, there is also the issue of processing. I visited one such production facility in Wexford last year and I was greatly impressed. Its operators were keen to impress on me that such plants could only meet a small proportion of the demand that will exist if targets are to be achieved. More alarming was the fact that they would have to import bio-fuel crops in order to maintain production because of the lack of domestic cultivation.

It is disappointing that more was not done to encourage the transformation of the former sugar factories at Mallow and Carlow for the production of fuels from sugar beet. I understand from those familiar with the area that this could have been feasible. Had it been done, not only would beet growers have been provided with an alternative outlet for their crops, even an expanded one, but new jobs could have been created to replace those lost through the EU enforced closure of Irish sugar plants. Unfortunately, Greencore had more to gain from moving into property development than retaining the plants as a viable operation. The Government chose not to exercise its golden share to influence the decisions, despite Greencore presiding over the loss of hundreds of jobs and the destruction of the most successful public enterprise in the State's history.

If we do not take the necessary measures to encourage greatly increased crop production and the establishment of processing facilities, Ireland will be merely substituting its dependence on imported fossil fuels for imported bio-fuels. While it would be better for the environment, it would not benefit the economy. It would be a shame if the potential were to be missed as it could provide a much needed alternative income source for farmers and many jobs in the processing sector.

While I support the Bill to encourage the use of blended fuels, we must not lose sight of the fact that bio-fuels need to be domestically produced.

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