M J Nolan (Carlow-Kilkenny, Fianna Fail)

I welcome the opportunity to speak on the legislation. I wish the Minister well with the Bill. I am aware there are time constraints in respect of the implementation and enactment of the legislation and I hope it will have a speedy passage through the Houses of the Oireachtas.

It is staggering to note that Ireland imports 99% of its transport fuel requirements. More than 90% of our energy requirement is made up of imported fossil fuels. Clearly, this cannot continue. This generation may satisfy its requirements by importing fossil fuels but future generations will suffer as a result. It is important to acknowledge our obligations and it is important that the European Union and the Government do something positive in respect of energy. Bio-fuels represent just one aspect of the debate.

It is important to note that Ireland imports more than 2.349 million tonnes of petrol per year. Since 2006 a limited quantity of bio-fuels has been supplied under the MOTR excise relief scheme. The scheme has been marginally successful but in order to ensure there is significant investment in the area of bio-fuel production, something more substantial is required. A presentation was made recently to the Joint Committee on Communications, Energy and Natural Resources by a company which hopes to proceed with the development of a 100,000-tonne bioethanol facility in Belview Port in south Kilkenny. The delegates indicated clearly that for an investment of the type they are planning, they needed firm guarantees that the Government is committed to its policy in the area of bio-fuels. I compliment the Minister on the manner in which he has engaged with this and other groups and commercial organisations. I understand he gave this particular delegation a very sympathetic hearing. I hope, as a result of amendments we expect to see on Committee Stage, that the company will be able to get the comfort it requires so that the banks will back its project.

While ethanol can be imported at a competitive price, it is not possible to produce it here because of climactic conditions and labour costs. However, it is important that we have some type of protection and support for an indigenous bio-fuel industry. Some 70% of bio-fuels are currently imported, mainly from South America, Brazil in particular. There are no large-scale bioethanol facilities in the State and it is important from an economic point of view that we support the development of such facilities. We are committed under the 2009 renewable energy directive to have 10% penetration of renewable energy in transport by 2020. Even if we meet that commitment, 90% of energy used in transport will continue to be imported and will consist mainly of fossil fuels. The Government White Paper on energy policy commits to the introduction of a bio-fuel obligation for these same reasons. Of that 10% penetration, bio-fuels will comprise roughly 8.5%, with the balance provided by means such as electric vehicles. It is important that we begin now to work towards meeting our obligations as members of the European Union. We have ten years left to implement these requirements.

As well as being necessary in order to meet our binding European Union targets for 2020, the Bill will also reduce our greenhouse gas emissions from transport and will improve our energy security, albeit only marginally. Given the amount of wheat and barley produced here, we are ideally suited to develop a profitable indigenous bioethanol production facility. In 2008 wheat production on the island of Ireland was almost 1 million tonnes, all of which was used for animal feed. Barley production was approximately 1.25 million tonnes, of which 60% was used for animal feed and the remainder for malting. Last year all the wheat production was used for animal feed because of poor weather conditions, and we had to import 250,000 tonnes of wheat which was used mainly for milling. The fuel versus food debate has not arisen in the context of the Irish situation but it is an issue that must be addressed internationally.

Encouraging an indigenous bio-fuel industry will reduce the importation of petrol and other fuels by approximately 4%. This is a move in the right direction which will offer a significant tax contribution through the employment it provides and the payment of tax by commercial operators. The provisions in this Bill will reduce our greenhouse gas emissions and help to meet our Kyoto Protocol and European Union bio-fuel obligations. The legislation will offer a significant contribution to Ireland's fuel and energy security. The Bill enjoys the broad support of all parties in the House and I wish the Minister well as he steers it through the Oireachtas.

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