John Browne (Wexford, Fianna Fail)

It is important that crops of this nature are purchased, so that farmers will be encouraged to continue to grow them. The proposed bioethanol facility at Belview Port is important for the future of the bioenergy industry. The company in question is hoping to create 400 jobs during the construction of the facility over 24 months and to employ 50 people during its ongoing operations. It is clear that significant employment would be associated with harvesting and transporting crops and providing essential supplies and ancillary services. It is estimated that 40% of the revenues generated by the company will be consumed locally. In addition, significant rates and development levies would be paid to Kilkenny County Council, a stable €60 million market would be established for local tillage farmers and the large-scale regeneration of the wheat and barley growing industry in the area would take place. It is obviously an important matter.

I ask the Minister to respond to a document that has been made sent to all of us by the Irish Farmers Association in recent days, under the heading "The Time for Talking is Over, Co-Firing REFIT Tariff Must be Introduced Immediately". The IFA document calls on the Minister to honour his commitment to introduce a co-firing REFIT tariff immediately. According to the IFA, "the introduction of a REFIT tariff is essential to enable biomass crops to compete with peat and ensure that farmers earn a fair price for the crop". The document continues:

To achieve the target almost a million tonnes of peat will need to be replaced with biomass per annum. It is estimated that only 50% of the biomass resource is currently available mainly from forestry resource and that up to 25,000 hectares of bioenergy crops, either miscanthus or willow will need to be established to satisfy the shortfall.

It is not unusual for the IFA to criticise the Department in this manner. I know that the chairman of the relevant IFA group, Mr. J.J. Kavanagh, who is from my home county, is a very responsible person. He contacted me in the last few days to ask me to raise this issue. I ask the Minister to respond by outlining how he will proceed from here. It is important for us to encourage farmers to grow alternative energy crops. I appreciate that grant aid was provided in the past for the growing of miscanthus. Perhaps the Minister can tell the House when he intends to introduce the renewable energy feed-in tariff, which is important.

As a representative of County Wexford, which is the home of wind and wave power, I see tremendous opportunities for the development of wave energy facilities in Kilmore Quay and elsewhere in south Wexford. I ask the Minister to consider incentives that would encourage people to participate in such development. We need to encourage those investors who are interested in this sector, as it can be expensive to get involved. Wind turbines have been erected in Bunclody and throughout north County Wexford. They sometimes prove to be contentious in striking a balance between the desires of local people and the farming community, which has examined alternatives. It is an important energy source for the future and the stand off between those who want to develop wind energy and the ESB has continued for the past number of years over the price paid by the ESB and the encouragement it offers. Now that there is competition in the electricity market, perhaps it will open more. It is highly costly to get involved in wind energy projects and no impediments should be put in the way of those who want to develop these projects and who are prepared to invest in them. It is important for the future

I welcome this Bill, which will be important for the future of the bio-fuel industry. Many companies and individuals are willing to invest if the legislation is right and if the encouragement is there. Oil prices have gone through the roof. They are artificially high in Ireland and the Minister must intervene and call in the oil company representatives to see what is going on because the price at the pump for diesel and petrol is not justifiable or acceptable and fierce pressure is being put on transport operators.

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