Dan Neville (Limerick West, Fine Gael)

I welcome the opportunity to speak on this motion. I am disappointed with the Minister's decision not to support a bio-energy production facility at Foynes which was proposed in this House during a debate on 27 October 2006.

As I stated during that debate, the world faces unprecedented energy and environmental challenges and both sectors are inextricably linked. Capway Engineering intended to be part of this new system. The company commenced operations in 2005 and had constructed a pilot research facility for bio-diesel production and a laboratory at Shannon, County Clare. It developed skills-based bio-diesel technology operating procedures and quality control systems. It also developed a core staff with expertise to transfer to a commercial scale plant.

In the past two and a half years, more than 1,000 jobs in my constituency have been lost in three companies, both directly and indirectly. I refer to Kantoher, Castlemahon and Microtherm in Bruff. Last October I pleaded with the Minister to support job creation in my constituency, but he has failed to do so. The company submitted an application to the Minister under the biofuels and mineral oil tax relief scheme for excise duty relief, but it was not accepted by the Minister. This was a comprehensive proposal which included a supply agreement with Dairygold co-operative and Acorn Independent Merchants Group. Capway Bioenergy had provisional distribution agreements in place with three of Ireland's leading mineral oil distributors, Topaz Energy Products, Maxol Group and Tedcastles Oil Products. Furthermore, Capway had signed provisional supply arrangements with three high profile capital fleets, Roadstone Provisions Limited, STL Logistics and Pallas Foods.

This was an excellent proposal to create jobs in my constituency. I appreciate that 80 jobs were involved but it would have been an injection of confidence into the constituency by the Government. Eighty jobs would have been provided during the construction period along with direct employment during the operational period with more than 30 full-time positions and significant indirect benefits. It would have been a new bio-energy company in the area and would have been one of the first positive things to happen in my constituency following the devastation of the three closures to which I referred.

It would have been complementary to the work being undertaken in my constituency on the development of alternative farm enterprises through the growth of miscanthus grass. It is to be hoped that miscanthus will be established as an alternative farm enterprise and, with Government support, it could provide a significant opportunity for alternative farm enterprise and environmentally friendly fuel. It is a high-yielding, multipurpose crop suitable for production across large areas of Ireland. The crop is undergoing much research in Europe and the United Kingdom as a renewable energy crop to produce heat and power.

I express extreme disappointment at the failure of the Government to support the project which would be an alternative farm enterprise and would create employment in the constituency of Limerick West.

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