Fergus O'Dowd (Louth, Fine Gael)

The refusal of the Government to accept this Bill, which is environmentally conscious and economically sensible, is a disgrace. Nobody, including Members on the Government side, doubt the scale of the economic and environmental difficulties that lie ahead if we do not address the energy crisis that awaits us.

To neutralise the effect of global warming on the earth's population, it is generally agreed that the level of global greenhouse gas emissions must be reduced by 70% by 2100. As a first step towards this objective, the Kyoto Agreement was drawn up with the aim of reducing global emissions by 5.2% by 2012, based on 1990 levels. Under this agreement, to which Ireland is a signatory, we undertook to limit the increase in these emissions to 13% based on our 1990 emissions. Without any action, it is now estimated that our emissions will rise by 37%, almost three times the permissible level. I understand the report leaked last week by the Environmental Protection Agency to The Irish Times, which may be published tomorrow, shows that our emissions are out of control, particularly in the area of transport.

In putting forward this Bill, Fine Gael makes the point clearly and practically that we must take the first step to address this crisis. Bio-fuels have the potential to provide significant benefits to our farmers, our environment and our economy. Most European states have begun the process of kick starting the bio-fuel industry by using set aside land for the growing of bio-fuel crops. Ireland must act now if we are to reach these standards. It is clear Irish agricultural land offers significant potential to develop alternative energy crops. We must be practical in what we can achieve — at least in the initial stages of developing a viable bio-fuel industry. However, it makes sense to follow the examples of other EU states which are much more advanced in such technologies than Ireland.

The greatest potential for Irish farmers and industry lies in the development of bio-diesel and bio-ethanol. We must focus on developing this area as a priority. The immediate focus must be on developing the process of fuel blending. Essentially, this would involve blending standard motoring diesel with rape seed oil to produce bio-diesel and petrol with bio-ethanol. That is why Fine Gael has developed a comprehensive policy in this area.

Excise duty on bio-fuels produced from all renewable energy crops should be removed. This would drive down costs and entice more players into the market. We urgently need establishment grants for producer groups that would consist of up to 50% of the cost of setting up the group — subject to a maximum of €300,000 per group. A public competition for the establishment and operation of a number of bio-fuel processing plants strategically located in a selected number of locations should be put in place. Capital start-up grants for these processing plants should be given to enable these plants to become established and begin viable processing operations.

It is vital that we establish greater links with international bio-fuel processors and fuel suppliers and the relevant Departments, especially the Department of Transport and the Department of Agriculture and Food, to facilitate the promotion of the bio-fuels industry.

However, production cannot flourish if there is no market for what is produced. At present, the growth of bio-fuels is hampered by the absence of any serious outlet in which to sell them. That is why this Bill proposes to legislate for all motor fuels to include a blend of fuel from renewable sources. All petrol sold at filling stations would include a 5% bio-ethanol mix and all diesels would contain a 2% bio-diesel mix. This would not necessitate the conversion of standard motor engines and would represent a good start in reducing emissions from cars. It would also provide an immediate market for farmers to sell energy crops.

As well as what we put in our cars, we need to do all we can to promote the purchase of energy efficient and economical cars. That is why we must look at VRT. To do this, Fine Gael, in government, would establish a system of energy efficiency labelling for vehicles and reward those that are awarded a higher rating with a reduced rate of VRT. Similarly, vehicles with a lower rate of efficiency would be penalised with a higher rate of VRT.

Since becoming Fine Gael spokesperson on the environment, I have seen first hand the problems with the planning system. If we are to have any hope of developing an alternative energy infrastructure in the future, it is vital we reform our current system of planning. There is an urgent need for a proper alternative energy structure as there is for a proper road network. It is vital we put in place a planning process that can cope with that need.

The Dutch system of planning can offer Ireland a very important lesson. In the Netherlands, the Government decides, on a national basis, the infrastructure projects needed and the best area in which to locate them. It then consults Parliament, local authorities and the people. It amends its plans accordingly and publishes binding guidelines on infrastructure construction in the period of years immediately ahead.

We must make it easier to reduce carbon emissions, encourage the use of bio-fuels and change the way we live and drive. Most of all, we need this Bill to change the way we operate and transport goods and ourselves.

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