Michael Colreavy (Sligo-North Leitrim, Sinn Fein)

I agree with the broad intent of the Fianna Fáil Bill, but it does not go nearly far enough. A reduction of four or five cent per litre, while welcome, is not enough to get this country moving again. Let us think for a moment about the agri-food sector. Everybody talks about how well the sector is doing, which is true. However, the industry is under significant threat from rising fuel prices. Fuel costs for farmers have doubled in the last three years, but profits have not increased to match. The profit margins of individual farmers are being eroded, which is resulting in serious financial pressure, particularly for the smaller farmers of the west and north west. Costs for agricultural contractors are astronomical during the summer and harvest periods, and these are passed on to farmers. In the last two years, the price of agricultural diesel has risen by a massive 54%. Imagine the effect on any industry in which the cost of a major component rises by 54% in two years. The price of road diesel has increased by almost 35%. At a time when the Government, rightly, calls for industrial and commercial competitiveness, Ireland's competitiveness in agriculture is being damaged due to expensive road haulage costs and the distance we are from the markets. I call on the Government to substantially reduce fuel duties and stop the prices of petrol and diesel from spiralling. The high price of fuel is causing severe hardship to consumers. Government taxes account for more than 57% of the cost of fuel, according to the Irish Petrol Retail Association. An earlier speaker mentioned Libya and the oil producers but Government is the main taker from the price of fuel. It is within the remit of the Government to address the considerable extra hardship placed on rural dwellers by these taxes.

Motoring is not an optional extra in the constituency I represent, Sligo-Leitrim. We do not have buses passing our door every 15 minutes and do not have access to taxis or the Luas in order to bring our children to school, go shopping, go to work or visit the doctor. The Government should also seriously consider the law of diminishing returns. Energy and transport costs are seriously damaging our local and national competitiveness. A recent survey by the Automobile Association found that fuel prices have become so grave for some people that livelihoods are now at stake. The survey shows costs of €100 per week for the average car owner. I recall the remark by the Minister for the Environment, Community and Local Government, Deputy Hogan, to the effect that the household tax costs only €2 a week extra. He was not talking about the existing cost of €100 per week that any family unfortunate enough to own a car in these times must pay. Five per cent of the motorists polled in that AA survey indicated they will either definitely or possibly abandon their job this year as their daily commute has become too expensive. Another 8% stated their fuel bill has become such a burden they are currently likely to be on the look out for alternative employment in the near future if such exists closer to their home.

Biofuels must also be considered as a means of providing an alternative fuel supply in this time of international uncertainty. There has to be investment in the growing of crops for biofuels, such as rapeseed, willow and sugar beet. We cannot become solely dependent on imported biofuels as we have become so on fossil fuels. A clean and affordable alternative must be found.

It is a pity this motion was not broadened to include heating oil because many families whose houses were designed for oil-fired central heating simply cannot afford the exorbitant costs involved in fuel purchase. We should seriously consider extending the SEI warmer home scheme to provide support for families who wish to install solid fuel alongside their existing oil-fired systems.

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