Tony Killeen (Clare, Fianna Fail)

Gabhaim buíochas leis an Teachta as ucht deis a thabhairt dom freagra a thabhairt ar an ábhar tábhachtach seo.

Miscanthus is a perennial species of grass, otherwise know as elephant grass, that can be used to produce green energy in the heat or electricity markets. The cultivation of miscanthus and willow is a relatively new activity on Irish farms. Potentially these crops can deliver positive outcomes in terms of reduced carbon dioxide emissions, better energy security and extra sources of income and employment for rural communities. They also provide opportunities for residue and waste utilisation as the resultant crops are for fuel rather than food.

In line with our commitments in the national bioenergy action plan, the Department introduced the bioenergy scheme on a pilot basis in 2007 to provide farmers with establishment grants to plant willow and miscanthus - both biomass crops - for use in the bioenergy market. Establishment grants are once off payments to cover up to 50% of the initial set-up costs including ground preparation, the purchase of planting stock and planting. The maximum grant payable was €l,450 per hectare. Grants were paid in two instalments - 75% following establishment of the crop and 25% in the year after establishment. The bioenergy scheme 2007-09 supported 364 farmers in the planting of 2,100 hectares of miscanthus and 360 hectares of willow to the end of 2009 at a cost of €2.9 million.

Applications for grant aid under the 2007-09 scheme were processed and checked for ownership or leasehold title, end-use contracts, verification of area, environmental and archaeological checks, ground suitability, etc. On-farm inspections were carried out on a percentage of applicants. Approvals were granted subject to the terms and conditions of the scheme.

Eligibility for payment of first and second instalment grants depended on adherence to the scheme terms and conditions and also on the degree of satisfaction with crop establishment. Crop inspections were carried out on all applicants' lands eligible for payment of first instalment grants. The inspections were carried out to verify adherence to scheme conditions and the area planted and to ensure a satisfactory level of crop establishment. Where weaknesses in crop establishment were identified, payments were deferred and growers were advised in writing as to the necessary remedial work required for satisfactory establishment and that such work would be necessary to qualify for the establishment grant.

Following the first grant instalment inspection process, all applicants were advised in writing of the ongoing need to maintain and manage the miscanthus crop in accordance with best practice guidelines and to carry out any necessary management measures required to ensure full crop establishment. Years 1 and 2 are a critical phase in the establishment of miscanthus and the proper management of the crop during this period is essential to allow crops establish fully and to reach their full potential. Management measures in year 2 included the following: first year cut-back and continued measures for the control of grass and broad-leaved weeds; patch-planting and infilling where the crop is unlikely to increase in sufficient density to cover in any what are termed "sparse or gappy" areas; monitoring and taking the necessary control measures to prevent damage from rabbit grazing; and stockproofing.

First and second instalment grants were delayed if the criteria for crop establishment were not satisfied. The proper establishment of miscanthus is effectively a two-year process. There have been some difficulties at a number of sites due to a variety of factors including the inexperience of growers in establishing such a new crop, planting techniques, weed control and the quality of the rhizomes. A problem arose in the spring of 2009 in relation to some Miscanthus crops planted in 2008. Almost 50 growers were affected to some degree and some 200 hectares will require remedial work. The level of damage varied from moderate to severe in some cases where crops completely failed. The problem was due to the non-emergence of plants after the winter, ranging from as low as 5% non-emergence to almost complete non-emergence. Affected plants showed signs of growth below and just above ground in many cases but then just died off. A number of different factors may be at play, including a question as to the incorrect timing or inappropriate application of a herbicide for the control of weeds in the spring.

The Department met with growers' representatives and has agreed to defer inspections and payments for the affected crops until autumn 2010 following a commitment by the growers that these crops would be re-established in the spring of 2010. Progress on this issue is being monitored. It is not the case that the Department is demanding the return of grant-aid from the affected farmers. The matter is still under investigation.

It was evident from the response to the pilot scheme that there is considerable interest in growing miscanthus and to a lesser extent willow in Ireland. We have recently launched the new bioenergy scheme and the closing date for this scheme is 31 March 2010.

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