Brian Cowen (Laois-Offaly, Fianna Fail)

This is a technical and statistical question. In regard to the bio-fuels issue, we are firmly committed to the development of bio-fuels generally. In the Finance Act 2006 we provided a significant tax measure to promote bio-fuels and the scheme which received the necessary EU state approval commenced in November 2006. It will provide for excise reliefs of up to 163 million litres per year. It will cost more than €200 million over five years. When fully operational it will result in CO2 savings of more than 0.25 million tonnes per year. It will contribute towards meeting the target of 5.75% transport fuel market penetration by bio-fuels by 2009. It will help reduce our dependency on conventional fossil fuels and will stimulate activity in the agricultural sector. These fiscal incentives were designed to kickstart the domestic bio-fuels industry and evidence suggests that it is happening.

Long-term general excise reliefs are not anticipated. There are additional non-fiscal measures that can be used to promote bio-fuels and to provide further market certainty and encourage projects of scale. The Government has signalled its intention to move to a bio-fuels obligation by 2009 which will require all fuel suppliers to ensure that bio-fuels represent a certain percentage of their annual sales. The obligation will fall under the remit of the Department of Communications, Energy and Natural Resources.

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