Paddy McHugh (Galway East, Independent)

I compliment the Fine Gael Party on introducing this Bill. With the current climate of rising oil prices, it is timely that the House should debate this important issue. The transport sector is dependent on oil to enable it to function. With volatility in the oil markets and its effects on the environment, the promotion of a low carbon economy is vital. In that context the encouragement of the bio-fuel sector is critical. Owing to the similarity of bio-fuels to fuel produced from fossil fuels, the mechanism of adopting the supply system that exists is simple. No obstacles exist in that regard.

When looking for an alternative to oil, what better place to look than to our agricultural sector? Recently a golden opportunity was lost when the Mallow and Carlow sugar factories closed. The Government had a ready-made opportunity to convert the two factories into bio-fuel processing plants. Although the opportunity was lost, we should ensure that future opportunities for the farming sector and the environment are not lost. The transition to bio-fuels will be a major leap and incentives are needed. Studies have suggested that one incentive would be to exempt bio-fuels from excise duties. The UK and Germany have followed this suggestion.

Farmers are experiencing difficulties in making a living from the land with the result that many of them have to work off the farm. Alternative farm enterprises must be explored, for which the Bill presents opportunities.

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