Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

I move:

That Dáil Éireann, mindful of the continued increase in the costs of energy arising from global instability and the threat this presents to our economy coupled with the economic impact of our failure to meet our commitments under the Kyoto Protocol,

—condemns the Government for its failure to act in a meaningful way to act on the alternative energy agenda; and

—believes the current measures in place to improve Ireland's renewable energy output are totally inadequate;

calls for:

—the removal of all excise duty on biofuels to stimulate production;

—legislation compelling all filling stations to include a 2% mix of biodiesel in all diesel sold and a 5% mix of ethanol in all petrol sold;

—a system of labelling for all new motor vehicles based on energy efficiency and use of renewable energy sources, similar to that currently used on electrical appliances;

—reform of vehicle registration tax to reward those vehicles granted a more efficient energy rating; and

—the setting up of the appropriate agency to co-ordinate the research and development required to develop the renewable energy sector.

I propose to share time with Deputies Olivia Mitchell, Connaughton, Stanton and Deenihan.

This Fine Gael motion incorporates and encompasses a policy on an issue that has become more important every day. The question of renewable energy has taken on a new impetus in recent times. Most other EU countries, the European Commission and various groups and bodies in this country have decided to make energy a priority. The issue of security of supply is the one issue that focuses everybody's attention. Security of supply does not mean much until such time as the supply disappears. For instance, just today in County Offaly, one part of the supply disappeared very quickly in the form of a new power station which had only been built a few years ago at a cost of €240 million.

This motion refers to the introduction of a reliable, renewable energy supply and a process of back-up which has not been achieved to date. Security of supply, economic viability and sustainability are all required, as is the requirement for the supply to be renewable. Most of all, we need the supply to be a clean one. We do not wish to have residues or waste which need to be disposed of at some later date with the obvious consequences for future generations.

It is essential to recognise that this country has a particular opportunity to move away from the trend in other European countries of taking the nuclear option as the easy option. This side of the House believes that the nuclear option is not an option and that we cannot afford it. I disagree strongly with recent newspaper headlines to the effect that nuclear energy is safest and the cleanest. It may be the cheapest but it may not be the cleanest nor the safest. It is important that we develop the other alternatives to such an extent that we can rely upon them.

To develop security of supply, it is recognised by all that we need to have a back-up system for wind energy in the event of the wind not blowing all the time, despite what we would like. We need interconnectors to ensure that we can draw from our next door neighbours and from Europe if necessary. It should not follow that we should be forced to wait until the lights go out to start planning and thinking.

I would have thought that the Minister and his predecessor would have drawn up a policy for the future because oil and fuel prices have fluctuated over recent years and it was quite clear what would happen in the future. Even the smallest hint of a worldwide crisis immediately constitutes a major crisis in the fuel area with consequent price increases in a barrel of oil. The oil companies will laugh all the way to the bank for as long as this continues to be the situation and there is a doubt about security of supply.

This economy has been growing rapidly for the past ten to 12 years and it will continue to grow. However, it cannot unless there is an adequate and reliable supply of energy. It must be a supply that can be relied upon by the industrial, domestic and commercial consumer at all times. If this does not happen, public confidence in the economy will dwindle and investment will, in the future, go to areas where it is known there is a reliable source of energy.

I made the point in a debate last week that this country has a professional attitude and can dispose of the business in hand in an efficient, effective and economic fashion. We do not need to have the kind of ongoing running battles that have occurred with regard to the Corrib gas field, where all the issues that should have been resolved long beforehand were resolved afterwards, to the detriment of public confidence in the economy and in the system.

The other side of the House is in an urgent rush to privatise everything. The ESB has given very good service to this country through its provision of energy over the years. I recognise the need for competition to be introduced into the marketplace and the ESB, like everyone else, must compete in the marketplace. I am confident it will have no difficulty in doing so. I warn the Government to take care not to allow a situation develop similar to that with Eircom whereby the future of the development of a particular industry was suddenly put in the hands of investors. A utility service requires more than investment; it also requires customer satisfaction. Without customer satisfaction being involved, confidence in the future of the business will dwindle with obvious consequences. I ask the Minister to recognise the potential for disaster. It is essential that renewables are introduced.

The Minister's amendment to the motion will state that the Government has introduced a programme for renewables. This is a watered down version of the policy document which Fine Gael produced. I thought that with all the spin doctors, advisers, national handlers, spokesmen and spokeswomen, the Government would have been light years ahead of the Opposition. However, it was we who produced the first documentation in this area and it was we who forged ahead and set an example for the Government, notwithstanding all the spin doctors and advisers bought and paid for at the taxpayers' expense. If energy were to be sourced from that area, we would have a great deal of it.

The two Government parties must together take responsibility for the failure to introduce a meaningful energy policy. One of the chief issues lacking in that area is the lack of co-ordination. There has been no joined-up thinking. The Departments of Agriculture and Food, Finance, Transport and the Department responsible for energy must all co-operate to bring together a policy which will be sufficiently broadly based and will receive support. The farming community has seen its sugar industry decimated by the failure of the Government to recognise what was happening. Fine Gael will offer some hope to the farming community in its policy on the sugar industry. Fine Gael has decided that each Department has a role to play in conservation as it pertains to the motor industry and in the issues of insulation, home heating and the general costs of home heating. It is regrettable that it fell to the Opposition, despite having none of the helping hands of advisers, spokespersons, spear carriers and helpers of all kinds, to set the example. In the course of this debate, my colleagues will set out our proposals further.

Olivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

I support this very timely motion. Global warming and practices such as climate change are slow impacting, difficult to identify and hard to detect, so it is very easy for us to bury our heads in the sand, as we have done for far too long. We could all look the other way, when there was no clear and immediate catastrophic impact on our way of life and no result of our indifference to our continued dependence on fossil fuels as almost our only energy source in Ireland. The rest of the population could be forgiven for hoping that we could all go on acting as we did in the past, but a Government cannot do that. The purpose of a Government is to show leadership and to prepare the country and the population for major and far-reaching changes — the undeniable and unavoidable lifestyle changes and economic changes that face us as the result of the dwindling of oil supplies.

Our Government throughout has shown a failure of leadership and has sat on its hands in the past nine years in office. If we could hope to deny the reality of climate change, we cannot deny the reality of rising oil prices. Oil has reached $70 a barrel, which was inconceivable even five years ago, and it will continue to rise inexorably no matter what we do. It is time to take our heads out of the sand and, whether the cause of rising prices is dwindling supplies, global instability, minor wars here, there and everywhere, or a combination of those, the reality is our economy is in imminent and growing danger and we are becoming increasingly uncompetitive. We are becoming so more quickly than anybody else because while almost everyone is impacted on by rising prices of oil and dwindling supplies, we are more affected because we are more dependent on imported fossil fuels than almost any other country, certainly more than any other in Europe.

In recent times, the Government has paid lip-service to conservation and alternative energy, but the dynamic, imaginative and crisis-aware response that has been needed has been absent. Our European neighbours have been quietly preparing for a post-fossil fuel world with twin-track policies, based on the one hand on energy conservation and, on the other, on identifying alternative and, preferably, renewable energy sources. Our Government, however, has done nothing, or virtually nothing, on energy conservation in the past nine years.

We have had the biggest build in the history of the country, increasing the number of houses by 500,000 in the past nine years. It is probably the biggest build we will ever have, but it has been wasted in terms of energy conservation with no attempt whatever to improve insulation standards from their woefully low level. That was because the Government listened to interests in the building industry and ensured no attempt was made to move to better building techniques. All those houses and apartment blocks were built with the old standards of insulation and without any requirements for innovative measures such as the installation of solar panels. No prescience was shown to prepare the country for the EU obligatory energy rating which will astound people when it is visited upon them in their badly insulated homes.

During that same period, car ownership exploded, not only because people became richer, as the Taoiseach likes to tell us, but because they had jobs. To get to those jobs they had to have a car. In some cases they had to have two, especially if they were one of those unfortunate, forgotten families who had settled in the periphery around our cities, especially around the city of Dublin. We have a staggering 2 million cars on our roads, guzzling petrol, increasing congestion and polluting the atmosphere.

Transport is our biggest energy user, and huge savings of precious oil could be made if the many thousands who use a car could transfer to public transport. Travelling through congested cities and towns at 9 km/h is not just stressful for people, it is also the most wasteful use imaginable of the precious oil resources that could be put to more productive use in the economy and which will increasingly be needed for more productive uses, particularly in an economy that has no alternative energy resources.

Meanwhile, an ever-growing number of heavy goods vehicles pour onto our roads to distribute goods to and from every corner of Ireland. With petrol getting daily more expensive and the writing now clearly on the wall, one would think the Government would have an aggressive rail freight policy to ensure that what could be moved by rail was moved by rail. Instead, it is not so much that it has not got an aggressive policy but that it has no policy at all on rail freight. It has sat by and allowed all movement of container traffic out of Dublin port by rail to be abandoned. No rail freight comes out of the port. Throughout the country, capacity is being decommissioned and sold off in a way that will make it almost impossible to recommission it in future when the petrol eventually runs out.

The Government has promised public transport. It would make a major contribution to energy conservation if more people used public transport. The solution being offered is electrified rail, which is right and proper. Be it the DART, metro or Luas, that is exactly what we want. Where is the energy supply to come from, however, to power those facilities? Not enough energy is being generated at the moment to meet today's needs, never mind the needs for the metro, DART and Luas. We have neither the energy source nor the generating capacity, and there seems to be no plan or even an awareness of a need for a plan.

Yesterday we read of Airtricity's attempts to interest British MPs in its proposal for a sub-sea grid to distribute wind-generated energy around Europe. This is the kind of bold, imaginative solution that should come from Government. It should not be left to private individuals to lobby other countries. At the very least, the Government should grasp, drive and support alternative energy solutions like this one abroad, and at home we must push the biofuel switch in every way we can to ensure Ireland is not left out, abandoned and in the dark when the oil runs out. Other countries will find solutions and we, the island country, will be left behind and our economy in tatters unless the Government has a major shift in its mindset and approach to energy conservation and alternative energy.

Probably no other issue facing this country is more important. All other problems require a dynamic, thriving economy to provide solutions, but such an economy requires energy and we are running out of that. The Fine Gael motion we have tabled contains some ideas to encourage the switch to the use of biofuels. Creating a sustainable market for biofuels though this series of initiatives will in itself create the dynamic to ensure ongoing research in the industry into alternative energies and optimum technologies which this country so desperately and urgently requires.

Paul Connaughton Snr (Galway East, Fine Gael)
Link to this: Individually | In context

I am delighted to get the opportunity to speak on this very important motion that we in Fine Gael have tabled. I have watched this topic being kicked around, so to speak, by many Governments but, in more recent times and especially in the past nine or ten years, by the Fianna Fáil-Progressive Democrats Government. It is very difficult to understand why any Government in the past six to eight years would have stood aside and simply depended on other places throughout the world producing the sort of energy that we need to keep the wheels turning in this country.

There are a few important matters that I want to discuss. Even the dogs in the street know that the price of a barrel of oil has risen to $70 and appears to be continuing to increase. All the experts tell us that it is very unlikely to fall below $70. Many professionals in the field, especially the biofuels field, tell me that it has got to a stage, when energy costs of petrol and diesel are at $70 a barrel, when all the projects that up to now would have been non-commercial kick in. We know down through the years what the problem was with all sorts of sustainable energy that were within our grasp, whether they were wind or solar energy or anything else, when we could get a plentiful supply of oil and diesel at a rate that we were used to paying. We thought the prices of those fuels were expensive at that time but they were not compared to current prices. A few brave warriors invested in organic energy but some of them were badly burned over the years. They had the right idea but were operating in the wrong environment.

Irrespective of what Government is in power, we have become accustomed to the availability of fuel supplies. We experienced fuel shortages on only two occasions and I remember the mayhem that ensued many years ago, but matters always seemed to come right. It is a psychological thought in the back of the mind of most people and that of the Government that this hurdle will always be overcome. There is a perception that diesel and oil will flow through the oil fields of the world, and in respect of fields to which we do not have access, that more oil fields will be found. However, science in this area proves conclusively this will not happen. Strategists and forecasters throughout the world inform us through programmes on television night, noon and morning that in the next five or six years the supplies of oil producing nations will reach their maximum level and subsequently oil production will level out or decrease.

To put that scenario into context in terms of Ireland, a small country and only a dot on the map, we have a population of 4 million and are advised it will increase to 5 million in 15 years' time. We are also advised there will be double the number of cars on our roads in 15 or 16 years' time. If the size of this economy was multiplied 5,000 fold, one could imagine the impact on oil supplies. We can imagine the impact on oil supplies of the growth of economies of the size of America, Germany, France, Italy, India and China. Against that background, it is past time that all governments examined the possibilities of using sustainable energies from their own resources. They need to examine the harnessing of energy from the air, sea and land.

Minor progress was made in the development of wind energy, which was a buzz word a few years ago. However, for a variety of reasons, not least the problems encountered by the ESB in incorporating wind energy into the grid in which many farmers have been involved over the years, we have reached a point where the Government must give clear direction and objectives to the various factions involved in the sector. No one energy resource will solve the energy question and addressing it will require a multiplicity of approaches.

I am against proceeding along the nuclear energy route, as is every Member on this side of the House. Given our size and location, placed as we are on the edge of Europe, I cannot understand why we would go down that route, given that we do not know where it would lead and in light of the shadow of Chernobyl.

The development of our renewable energy sector presents a major opportunity to restore pride among members of the farming community. Irish agriculture is on its knees because the products farmers were trained to and wanted to produce are no longer required in the way they used to be. In terms of our 12 million acres of productive land, we could manage, as the European Union wants us to do, with 7 million or 8 million acres of productive land. Therefore, 4 million or 5 million acres of land could be used for the production of biofuels and various other sustainable crops. I see no reason a crop of willow could not grow alongside a crop of potatoes, carrots or parsnips.

The only way the production of such biofuel crops will be a success, and the Minister, Deputy Noel Dempsey, knows this more than most of his colleagues in Cabinet, and for this piece of the jigsaw to fit is for farmers to make a profit from growing such crops. Such an enterprise can be dressed up and the question of national pride, environmental protection and meeting commitments under the Kyoto Protocol can be raised, but the need for it to yield a profit is essential. Such an enterprise is no different from the exploration of oil wells throughout the world. Oil finds made millionaires out of property owners and they sprouted up like mushrooms in May because there was money to be made in the oil industry. The only way such an enterprise will work in the context of agriculture is if farmers engaged in it, who would have to be retrained in the growing of such crops, are able to process the crops, trust there will be contracts for their produce, and that it would yield a profit similar to the profit earned from dairying and beef production in the past.

The advice of scientists in the Agricultural Institute was the bible for Irish farmers 20 or 30 years ago. A similar structure will have to be put in place to co-ordinate research and development, involving a body of scientists and the development of a scientific approach to the development of the renewable energy sector. The putting in place of such a structure will cost money. Every person must understand there is a cost involved in developing such projects for the future stability and prosperity of the country. It is vital that such an institute is established where potential mistakes in the development of such projects can be detected to ensure farmers will not make them. That same principle applies to industry but I am speaking about the farming community.

We have the land for the development of such projects. Many young people wish to make a living from farming. If the price of a barrel of oil at $70 has increased to a level that it will be expensive to use and alternative energy crops can be produced at that cost or slightly higher, we need to establish an institute to collect and analyse information and science in this area from throughout the world and detect mistakes associated with such production. All such institutes make or detect mistakes in the process from an experimental viewpoint — that is the reason they exist. However, almost none of that analysis is taking place here and it is time we engaged in it.

The production of alternative crops was a buzz term among the farming community. Some farmers decided to rear deer and rabbits and even some went into the worm business. That was a fanciful journey for a few farmers who went out of business over night as soon as the commercial reality kicked in. The enterprises I am dealing with are far removed from raising deer or rabbits. Such enterprises will prove to be sustainable for farmers, but many steps need to be taken that they are unable, or could not be expected, to take. It comes down to the question of research and development. Potential mistakes need to be made and farmers need to be shown what can be done. I have not the slightest doubt that the development of such enterprises will not solve all our problems but it will do two things at the one time. It will ensure hybrid production on our farms. Farms will be reinvigorated in every townland in the country because there will be a market for their produce. There will be no such thing as willow mountains. I expect that every crop produced here will be consumed here. It will replace costly imported fuels and reduce our dependence on influences outside our control. Any Government should take note of that. I welcome the bit of a journey the Government took in this respect at the last budget, but it was far from being the real thing. I hope the Government intends to build on it. If and when Fine Gael gets into Government, this will be the subject of one of its big future investment programmes. Whoever is standing behind the Government desks in ten years' time will encounter much more trouble in respect of this issue than is the case at present.

David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

I am very happy to contribute briefly to the debate on this motion, the first part of which calls on the Dáil to condemn the Government for its failure to act "in a meaningful way" on the alternative energy agenda.

The overall aim of Sustainable Development: A Strategy for Ireland, which was published in 1997, was "to ensure that the economy and society in Ireland can develop to their full potential within a well protected environment, without compromising the quality of that environment, and with responsibility towards present and future generations and the wider international community". It is clear that in April 1997, the then Government saw this entire area as a major priority. In April 1998, the new Department of Public Enterprise placed a more pronounced emphasis on the environment in energy policy, leading to a greater focus on energy efficiency. In 1996, the Government launched a programme, Renewable Energy — A Strategy for the Future, to promote the generation of energy from renewable energy sources. The Government of ten years ago saw this issue as a major priority.

There was great excitement in 1999 when the Green Paper on Sustainable Energy was published. I was involved in the debate on the Green Paper at that time from the Opposition benches. I was quite interested in the publication and I hoped a great deal would come from it. A number of Deputies went to Gotland in Sweden around that time to examine what had been done there. We were very impressed with the progress made and we hoped that similar progress would be made here. That was not to be the case, unfortunately.

The renewable energy development group established in May 2004 has published All-Island Energy Market, which sets out the group's vision for the renewable energy sector in the years to 2020. It is clear that many reports and documents have been produced over many years, but not much has happened on the ground. I have examined some of the submissions made by many people as part of the consultation process that preceded the publication of the 2020 vision document. For example, an independent external observer from the University of Limerick said it was "heartening to see the very recent but somewhat belated interest being expressed by Government Ministers and their agencies in renewable energy". He went on to point out:

The changes in EU farm policy particularly the single farm payment scheme offer opportunity to the agricultural sector in Ireland to become significant providers of primary energy through the provision of land for wind farms or through the use of arable land to grow biomass crops. These crops and agricultural residues can have an impact on transport energy and the energy required for production of electricity. The transport sector has been recognised recently with the decision to alleviate the duty payment on seven million litres of biodiesel and rapeseed oil.

As Deputy Connaughton said, the Government did not start to appreciate the importance of this area until very recently. The submission made by the representative of the University of Limerick also stated:

Currently although farmers might grow these crops there are neither large scale facilities for combustion nor sufficient small scale CHP plants available. There is recognition at EU level that if penetration of bioelectricity is to grow that it will be through co-combustion in existing solid fossil fuel facilities.

According to the man in question, "the use of biomass in these facilities would offer the additional benefit of extending the lifetime of the peat resource." That is an issue that has been debated today. It is certain that the use of renewable energy sources has huge potential. We need to grasp those possibilities.

I note that the Environmental Protection Agency has called for cross-compliance in the agricultural sector. It has argued that "the Single Farm Payment may afford considerable opportunities to develop energy crops, however, this is unlikely to occur unless agricultural and energy policies are harmonised". That is exactly what Fine Gael has been saying in its policy document. There is a need for cross-departmental action on this. It is estimated that the agricultural sector will spend up to €1 billion on the construction of additional animal slurry storage capacity. The EPA has mentioned the potential of such development in terms of the production of energy. The EPA maintains that the replacement of existing solid fuel-fired plants with biofuels would contribute to the achievement of this country's Kyoto targets, which is an issue that has been mentioned by other speakers.

When I examined where we stand in respect of this issue compared with other EU member states, I came across an EU fact sheet from September 2005. It showed that Sweden, Finland, Austria and Portugal got a far greater proportion of their energy from renewable sources than the other member states. If I understand the figures correctly, by 2002 Austria had achieved 68% of its national renewable energy targets, Denmark had achieved 20%, Finland had achieved 24%, Italy had achieved 16%, Portugal had achieved 21% and Ireland had achieved just 5%. We have a long way to go by comparison to our EU counterparts. I welcome some of the things the Government is doing, but it needs to do much more. It needs to spend more on research, for example.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Hear, hear.

David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

OECD data indicate that just 10% of the research and development budgets of EU Governments are related to renewable energies, whereas more than 50% of such budgets are devoted to conventional energy technologies. We need to spend much more on research into renewable energy.

On an issue that affects the Munster area and was touched on by Deputy Connaughton, it is possible that the Minister, Deputy Noel Dempsey, is aware of the closure of the Mallow sugar plant. There is substantial interest in this matter in my local area. I draw the Minister's attention to this important subject. I have been told that the Mallow plant has the capacity to produce thick sugar juice that can be fermented to ethanol. I appreciate that the Mallow plant is a commercial and privately owned operation, but I ask the Minister to use his influence to ensure it is not dismantled. We may regret it in the future if it is dismantled because it would take a long time to construct a similar plant. The existing plant has the capacity, facilities and machinery to produce thick sugar juice. Some companies are interested in converting that juice to ethanol. The ConocoPhillips plant in Whitegate, which is not too far from Mallow and has already been involved in the production of biofuels, is anxious to get involved in this sector. As an official from the Department of Communications, Marine and Natural Resources said at last week's meeting of the Joint Committee on Agriculture and Food:

There are three projects relating to biodiesel, the first of which was a pilot project by ConocoPhillips at the Whitegate refinery. It produced a million litres of biofuel. This was an innovative process, not quite the same as the regular biodiesel process. It complied with the diesel standard and could be put into every tanker.

The committee was also told that Maxol and Ford are co-operating on a bioethanol project. It is possible to make progress in this area.

Young farmers in Munster are very anxious to grow wheat or sugar beet that can be converted into thick sugar juice in the Mallow plant. It is obvious that such a development should not affect the compensation that sugar beet farmers will receive to help them to cope with their huge losses of income. If we allow the Mallow plant to be dismantled, sold and transported abroad, it will be a national disgrace, especially if we have to build a new plant in a few years' time. I am not sure where one would get planning permission to build such a plant. I was told last night that the Mallow plant has the capacity to generate enough electricity to power the town of Mallow, although I am not sure how true that is. I was also told that there is an electricity generator in the plant. When I was in Sweden, I came across a combined heat and power plant that was 10 km from the nearest town. The plant was burning forestry cuttings to generate electricity. The hot water that was produced was pumped into the town, which was involved in a district heating system. The water was taken to heat houses, using this renewable source.

We need to undertake much more research into this important topic. We need to start looking at geothermal, solar, wave, tidal, wind and hydro energy, as well as biomass.

The main point I want to make is about something that is imminent and is happening as we speak, namely, the closure of the plant in Mallow. I ask the Minister to consult his Cabinet colleagues, especially the Minister for Agriculture and Food, Deputy Coughlan, and possibly the Commissioner tomorrow when she is here, in this regard. If I get the opportunity I will raise with her as well the fact that we should retain that plant. It is stated that if the plant is dismantled, 100% compensation will be granted and if it is left there for bioethanol production 75% compensation will be granted. The main point is that sugar will not be produced there. If we can convince the European Commission to have ethanol produced there, that will be a win-win solution for everyone. I have much time for the Minister, Deputy Noel Dempsey, whom I have seen to be innovative and positive in the past, and I ask him to treat this as a serious matter. If the Mallow plant is let go we will not be able to get it back.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

"recognises the:

—ongoing imperative to develop innovative renewable and sustainable energy policies to ensure security of energy supply, economic competitiveness and environmental sustainability, and the major progress being made by the Government in achieving these objectives;

—wide range of investments and supports initiated by the Government to deliver an ambitious programme of renewable and sustainable energy development; and

—comprehensive and holistic strategy of Government in addressing renewable energy priorities, through all-island co-operation and a fully cohesive policy approach involving all relevant Departments, agencies and stakeholders;

commends the Government for:

—the €205 million biofuels excise relief package announced in budget 2006, underpinned by capital grant aid, which will allow Ireland to exceed 2% market penetration by 2008;

—the introduction of the renewable energy feed-in tariff, which will enable Ireland to exceed its target of 13.2% renewable electricity consumption by 2010;

—the introduction of the €27 million "greener homes" domestic grants programme for renewable heat and the success of that programme to date;

—the commitment to further grant schemes shortly to support commercial scale biomass heating and combined heat and power;

—the implementation of a targeted ocean strategy to capitalise on Ireland's unique maritime environment which will position Ireland at the forefront of international research and development in this area;

—the reduced rate of vehicle registration tax introduced for hybrid electric vehicles and flexible fuel vehicles capable of running on 85% biofuels;

—its commitment jointly with the UK Government to the development of sustainable energy on an all-island basis in the context of the all-island energy market;

notes:

—that Fine Gael refused the opportunity to constructively participate in an all-party approach to develop renewable energy policies for the future;

—the Government is strongly committed to promoting and assisting the sustainable production, supply and use of energy through SEI, the statutory agency established for this purpose;

—the wide range of support and research and development programmes which SEI implements in the industrial, commercial, public and domestic sectors in support of those objectives;

—the imminent establishment of the Irish Energy Research Council which will co-ordinate and advise on priorities for energy research technology development and innovation to 2013 and beyond;

—that VRT already takes into account the fuel usage of the car, with bigger cars incurring higher VRT rates, and that review of vehicle tax is the subject of a current European Commission proposal; and

—that EC Directive 1999/94 already requires member states to implement requirements in relation to the provision of information on CO2 emissions and fuel economy in the case of all new passenger cars."

I would like to share my time with the Chief Whip, Deputy Kitt.

I thank Fine Gael for tabling this motion. It is a welcome opportunity from my viewpoint to do three things. First, it gives me the opportunity to outline in detail the extensive measures that have already been put in place by this Government to radically increase the contribution of renewable energy to Ireland's energy mix. Contrary to what Deputy Durkan said when he talked about Fine Gael producing a policy document that gave the lead to the Government, from what I have seen of it, all it did was to copy some of the policies that we are pursuing.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

The Minister did not produce them in time.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

The saner parts of the document were copied from what is actually happening at the moment. The Deputy is welcome to the rest of it.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

It is a new Government policy.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

Addressing the motion gives me the opportunity to inform Deputies opposite who tabled it what is actually happening, since they appear to be totally oblivious to it. It is clear that they are woefully ill-informed and singularly ill-equipped to speak with any authority on renewable energy policy developments, at national and EU levels. It also gives me the opportunity to highlight the hypocrisy of Fine Gael Deputies who tabled the motion. When they had an opportunity to contribute positively to the development of an agreed policy on renewable energy on an all-party basis, they refused that opportunity.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

The Minister should mention some of the Government's other policies.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

That was an initiative from Deputy Eamon Ryan of the Green Party, a colleague in opposition. It was not a Government initiative, and they just could not agree with it.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

We thought the Government was encouraging it.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
Link to this: Individually | In context

The Deputy should allow the Minister to continue, please.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

It does not augur well. Perhaps if they had joined in that all-party consensus to move forward together, they might know somewhat more about energy policy.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

If we had joined the Government side in the electronic ballot boxes endeavour, we would have saved it. There is far too much consensus.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

For the benefit of Opposition Deputies who appear to be unaware of initiatives, I will provide a detailed outline of the progress we have made. We have made major progress. We have set an ambitious agenda across the three principal renewable energy sectors: renewable electricity, transport and heat.

By way of background, the key factors driving the development of renewable energy sources include carbon and other environmental imperatives, rising oil and gas prices and exponential increases in global energy demand. In the area of renewable electricity our immediate programme is to increase the efficient contribution from renewable electricity from 3.6% in 1997 to 13.2% by 2010. That requires a capacity of 1,450 MW and we are on track to achieve and exceed this target. In the past two years alone, Ireland has doubled its renewable generating capacity to 846 MW and there is a further 630 MW in signed connection agreements. Sustainable Energy Ireland, SEI, will tomorrow announce a 70% increase in wind generated electricity over the past 12 months.

To ensure all the projects in the pipeline are delivered I recently launched the renewable energy feed-in tariff, REFIT. That is an investment which will require €119 million over 15 years. It will underpin the viability of these projects by offering 15 year contracts to developers so that they can plan ahead. These measures will ensure that we reach the target. Not only will we reach the 2010 target on time, but we will be ahead of schedule and we intend to do more than that. In support of that particular aim, an additional 1,300 MW of wind project has been released into the connection process in the past few weeks. Contrary to what has been said across the House, we are moving forward, we have set ambitious targets and we will achieve them. Even more ambitious targets will be set in the future.

We are committed to the major development of renewable energy sources and I do not intend in any way to limit our ambition. That is also, crucially, a shared ambition for the island as a whole in the joint commitment to enhance energy sustainability on an all-island basis. The 2004 all-island energy market development framework sets out the blueprint for the achievement of an island energy market. North-South co-operation in the area of sustainable and renewable energy is progressing apace. I take the opportunity of acknowledging and thanking former Minister Angela Smith for her work and co-operation in that area. She took a great interest in the whole energy area and I wish her well in her new position.

The all-island 2020 vision for renewable energy, referred to by Deputy Durkan, I believe, and published as a consultation paper last July, will culminate in an agreed joint policy paper later this year with a particular focus on renewable electricity and generation. To ensure the implementation of the strategy for renewables we have commissioned a joint all-island grid study into the accommodation of different renewable energy technologies into the electricity grid system. Both Governments have completed an analysis of the potential for bioenergy to form a critical part of the long-term renewables mix across the island. Both Governments have stated their common view on the need to actively support the drive to mainstream the use of renewable energy and significantly increase energy efficiency on an all-island basis.

It is significant that the Fine Gael motion does not refer to the all-island dimension of renewable energy policy, or indeed energy policy generally.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

It does, and we did not have the same number of advisers that the Government side has.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

The party's policy document is fairly scant in that regard as well. While wind will provide the majority of additional renewable generation capacity in the medium term, there is every scope for broadening our renewable portfolio by encouraging biomass and other technologies, which will increasingly become economically and technically viable. For that reason I have provided for a significantly higher biomass feed-in price in REFIT to take account of the higher costs involved — at €72 per MW hour as compared to €57 per MW hour for wind powered plants. That is part of the solution towards encouraging other forms of renewable energy. I will continue to work closely with the European Commission and my colleague, the Minister for Agriculture and Food, in developing the required supports and ensuring that the outcomes are delivered.

We are also working in Europe to ensure that the potential for renewable energy sources is fulfilled in support of the EU's three main energy policy objectives, sustainability, competitiveness and security of supply. I have welcomed the Commission's Green Paper on energy policy which sets an ambitious agenda for the development of renewable energy sources. The EU policy framework needs to be supportive if we are to stimulate the increasing competitiveness of renewable energy sources. Ireland has been particularly supportive of the Commission's proposals to develop a framework plan to strengthen the European research effort and ensure better-integrated Community and national research and innovation programmes. Europe needs to mobilise all players to develop an EU vision for the transformation of the energy system and to develop the lead in energy innovation.

The International Energy Agency has stated that the research and development programmes of individual governments will play a vital role in enabling renewable technologies to deliver their potential. Given the diverse nature of renewable energy sources, each country must promote technologies and options best suited to its own resources and needs. I agree that this is the correct approach and the Government has already demonstrated its commitment by providing significantly enhanced funding as well as new structures to ensure the prioritisation, co-ordination and support of energy research and development.

Following a strategic review of energy research and development, it is clear that national energy research activities should be better aligned with national energy economic and innovation policies. The strategic direction for energy research will focus on security of supply, renewable energy technologies and energy efficiency. In that context, I will shortly announce the establishment of the Irish energy research council, which will advise on the development of policy for energy research——

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Fair play to the Minister. That is Fine Gael policy once again.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

——and on priorities for Irish energy research in the medium to longer term. I am somewhat disappointed the Deputy did not listen to me more carefully when I answered questions on these matters in the House. I told him some considerable time before the Fine Gael policy document emerged that this is what we were doing.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

The Minister tells us many things but they do not all follow.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
Link to this: Individually | In context

The Minister should be allowed to speak without interruption.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

My objective is to ensure that all of the policy and programmes are fully aligned with overall energy policy, as well as with policies for transport, environment, agriculture, enterprise, science and education. I am working in close co-operation with my colleague the Minister, Deputy Martin, to ensure that energy research and development is fully aligned to the Government's overall national research and development objectives.

The Government is forging ahead with research and development into other forms of renewable energy. Unlike the Fine Gael Party, which has clearly been sleepwalking as we have been forging ahead, the Government has commissioned and finalised the critical research——

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

If the Minister calls his activity forging ahead I would hate to see him if he was sleepwalking.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
Link to this: Individually | In context

The Minister should be allowed to speak without interruption.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

——and analysis to underpin ocean technology, bioenergy — which is not mentioned in any of the Fine Gael documents I saw——

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

The Minister did not read them.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

——CHP and renewable electricity development. Two weeks ago, in Galway, I launched a new ocean energy strategy, which was developed by Sustainable Energy Ireland, SEI, and the Marine Institute. This is further evidence of the Government's integrated approach to delivery. As the first stage in implementing this strategy, we have recently upgraded the hydraulics and maritime research centre in UCC as well as opening an ocean energy test site a mile and a half off the coast of Spiddal, County Galway. This 37 hectare site will be open to test prototype ocean energy devices. The first wave energy device, WaveBob, has been deployed on the Spiddal site.

SEI and the Marine Institute are also currently supporting a number of other ocean energy research and development initiatives. Ireland has one of the most promising ocean energy resources in the world and we are positioning ourselves at the forefront of development of this resource.

David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

It is about time.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

We are making significant progress in developing a new renewable heat market in Ireland. We are currently rolling out a €65 million multi-annual package in support of this sector. The rolling out of this package commenced on 27 March when I launched a €27 million greener homes grant programme for the domestic sector. This five-year programme includes funding for wood chip and wood pellet boilers and stoves and solar and heat pump technologies. Grant aid of up to €6,500 is available to individuals, depending on the technology being employed. I am sure people will be disappointed to note that in its policy document Fine Gael has proposed that the grants should be cut by half.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

We are not. We have stated we would pay them.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

They were again caught napping on this issue. I am sure people will be most disappointed in that.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

At least we will not do what the Minister's party did with the disabled person's grants. We will pay them.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
Link to this: Individually | In context

The Minister should be allowed to speak without interruption.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

Our incentives package is ambitious and is delivering. Fine Gael has entirely missed the point on this issue and is clearly out of touch with the general public. The scheme has been a huge success to date, with 1,600 applications being received in its first month of operation, of which 1,100 have been approved. The scale of this programme and the level of grant aid available — typically at 40% of the capital cost — underlines the Government's commitment to encourage and help people install renewable heat technology in their homes. The programme will support the conversion to renewable energy in more than 10,000 homes and is an excellent start on which I intend to build.

Following on the success of this programme, I will launch a grant aid package for commercial scale biomass boilers in the coming weeks. The programme will build on SEl's highly successful pilot bioheat programme and will encourage industry and commercial interests to invest in biomass heating technologies. This initiative, together with the greener homes scheme will stimulate the demand for renewable technologies and, in particular, biomass products such as wood chip and wood pellet, thereby providing valuable support for rural economies supporting sustainable jobs and growth.

I am working closely with my colleagues the Ministers for Finance, Agriculture and Food, Transport, the Environment, Heritage and Local Government, Enterprise Trade and Employment and Enterprise Ireland, to ensure that the appropriate supports are in place across the supply chain. These initiatives are designed to reinforce the potential for renewable energy to become a significant economic sector in its own right, in the context of rural development objectives.

The biofuels excise relief programme, and biomass heating grants programme, which were developed and supported by the relevant Departments, show the value of this close co-operation. Several complementary initiatives have also been developed by the Department of Agriculture and Food, including forestry grants to promote alternative timber use and reduce dependence on fossil fuels, a scheme of supports for the purchase of specialist wood biomass harvesting equipment, grant assistance for research projects relating to biofuels and energy crop uses.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

An election must be coming.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

Fine Gael has suggested it would provide a community dividend for those communities located close to new infrastructure that will act as compensation for those living close to important renewable energy infrastructure. This is already happening and will be expressly included in the planning code in the strategic infrastructure Bill that will be published shortly.

The Government's objective is to reward and empower communities in developing their own renewable energy industries and enable individuals, as well as the business and industrial community, to avail of cheaper and cleaner renewable energy heating systems. The best way to ensure the acceptability of such infrastructure in any area is to have proper planning structures in place and to ensure that local communities can share in the benefits of any development.

Our policy to integrate renewable energy with the development of the rural economy is particularly evident in the development of renewable transport fuels. Biofuels offer major potential to support the development of the rural economy. Deputy Connaughton referred to this point. They also provide one of the few opportunities to effect a meaningful reduction of emissions in the growing transport market.

The original pilot mineral oil tax relief scheme for biofuels has resulted in the emergence of eight innovative biofuels projects which will produce 16 million litres of biofuels by the end of next year. Following on the success of this initiative I agreed with my colleague, the Minister for Finance, a further targeted package of excise relief valued at €205 million. This was announced in the last budget. The new excise relief programme will be rolled out between now and 2010 and will enable us to exceed 2% of market penetration by biofuels by 2008.

Our 2% target can be met from energy crops based on existing land use patterns. I am working with my colleague, the Minister for Agriculture and Food, to encourage and support a change in land use patterns to achieve even more ambitious targets. However, in the short term it should be noted that any target above 2% would most likely be met through imports of biofuels or a change in crop production leading to imports of feedstocks. I am, therefore, surprised at Fine Gael's policy commitment to remove all excise duty on biofuels. If Fine Gael's aim is merely to replace existing food crops for imported food crops or to replace existing fossil fuels with imported biofuels——

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

The Government has sucked the life out of the sugar industry. It is trying to offload beet.

Rory O'Hanlon (Cavan-Monaghan, Ceann Comhairle)
Link to this: Individually | In context

The Deputy should allow the Minister to continue without interruption. He will have another opportunity to contribute when he closes the debate.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

Fine Gael's proposals on biofuels would result in the taxpayer paying significant sums for imported biofuels and I am not prepared to take that route.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Beet farmers have nothing to grow this year.

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

I am delighted to have had the opportunity to contribute but I am sorry I do not have another 15 or 20 minutes to enlighten Opposition Members.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

I am also sorry because the Minister could entertain me.

Tom Kitt (Dublin South, Fianna Fail)
Link to this: Individually | In context

I am delighted to have an opportunity to contribute to the debate. I agree with Deputy Stanton's statement that the Minister has been innovative in this area. He has given great leadership and it is a great pity that Fine Gael did not co-operate with his suggestion to work on an all-party basis.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Why did the Government not do that in regard to the health service or electronic voting and the other issues it made a hames of?

Noel Dempsey (Meath, Fianna Fail)
Link to this: Individually | In context

The Deputy should have led the way.

Tom Kitt (Dublin South, Fianna Fail)
Link to this: Individually | In context

As the Minister, Deputy Noel Dempsey, pointed out, the motion has given the Government a valuable opportunity to set out comprehensively the range of initiatives on which it has given leadership.

As we celebrate Europe Day, it is timely that we position the national renewable energy agenda within the EU context. I endorse President Barroso's statement that growth and jobs are the central priorities for the Commission and I welcome the Commission's emphasis on setting a positive agenda for Europe, which provides added value for citizens. Growth and jobs need secure, sustainable and competitive energy. European energy policy, as the Commission acknowledges, is critically important for Ireland. Unlike Opposition Members who seem blithely unaware of major developments in EU energy policy, the Government has made it clear that Ireland has much to gain from the development of a European energy policy.

A key dimension of Ireland's input into the Commission's Green Paper and in discussions at the spring Council is the importance of renewable energy. The Government is working positively and productively in Europe to address the collective energy challenges of security of supply, competitiveness and sustainability. We are pleased the EU's ambitious new energy work programme is very much in line with the Government's approach and we welcome the strategic focus on renewable energy, energy efficiency and research and innovation, which will underpin the development and commercialisation of renewable technologies. We look forward to working with our European colleagues in delivering on the energy agenda.

The Government clearly recognises the increasingly important role of renewable and sustainable energy across all sectors of the economy and, working together, ministerial colleagues have developed a series of integrated and innovate programmes that are addressing energy production, supply and demand across the entire economy, from the farmer in the field, to the electricity supplier, the business community and the private individual, all of whom have an interest in the strategic development of this resource.

I refer to our key priorities and achievements. We have doubled our renewable electricity capacity in the past two years and are on track to meet our 2010 targets, if not exceed them. We are developing renewable and sustainable energy policies on an all-island basis that will ensure the best outcomes. We are working in Europe to deliver solutions and opportunities for Ireland in key energy policy priorities. We have rolled out an innovative pilot biofuels excise relief programme which has resulted in eight biofuels projects coming on stream. We have put in place a five-year excise relief package of €205 million, which will result in Ireland exceeding 2% market penetration of biofuels by 2008. We are introducing grant aid to underpin the excise relief programme and support indigenous production of biofuels. We are delivering an ocean energy strategy and we are supporting important EU initiatives in the areas of energy efficiency, energy research, biomass and biofuels. We are providing funding for energy research technology development innovation, RTDI. We have launched a €27 million domestic renewable heat grants programme, which has been greeted with enthusiasm by the public. A total of 1,100 grants have been approved since the programme was launched over a month ago. At least 10,000 renewable energy systems will be installed in homes under the programme, which will give a boost to individual householders who face rising fuel bills and who are anxious to play their part in developing a sustainable energy economy.

We will launch a major grant aid package for commercial scale biomass boilers, which will allow businesses to avail of lower cost heating. We will also launch a combined heat and power programme, which will assist the commercial sector in switching to more efficient electricity and heat generation, including electricity generated from biomass. We have introduced forestry grants to promote alternative use of timber and we will introduce a scheme of supports for the purchase of specialist wood biomass harvesting equipment. We have provided grant assistance in the agricultural sector for research projects relating to biofuels and energy crop uses and provided supports and studies to support biofuel deployment and policy development. We will shortly launch a major national energy efficiency campaign targeting individual consumers as well as specific economic sectors, through industry, SMEs, schools and the public sector. We will shortly publish an energy policy Green Paper, which will set out the framework for national energy policy for the medium to long term.

Our record to date simply cannot be matched by the simplistic and ill-informed rhetoric contained in Fine Gael's so-called "National Plan for Alternative Energy". Fine Gael's plan is worryingly devoid of strategic thinking and is clearly not as ambitious or all-embracing as the policy being rolled out by Government. It certainly does not stand up to scrutiny. For example, Fine Gael suggests that all fuels should be required to contain 5% and 2% of bioethanol and biodiesel per litre of petrol and diesel respectively. This is clearly not permissible under EU legislation and the Commission has cautioned that it could not be done on a unilateral basis by member states, even if the legislation were to change.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

They use nuclear power.

Tom Kitt (Dublin South, Fianna Fail)
Link to this: Individually | In context

The Government, by comparison to Fine Gael, is working with the Commission to explore whether this option, or a biofuels obligation or other support systems are the optimum approach to securing greater market penetration of biofuels.

Second, Fine Gael proposes grants of between €500 and €3,500 for householders wishing to convert their home heating to renewable energy. The Government's greener homes scheme, offers grants of up to €6,500 and includes new homeowners and not only those wishing to convert existing systems. Ironically, Fine Gael, in its policy document, is more familiar with the UK grants scheme than it is with the scheme introduced by its own Government.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

What is the Government's total spend on its energy policy? It is afraid to tell us.

Tom Kitt (Dublin South, Fianna Fail)
Link to this: Individually | In context

Third, Fine Gael says it will "consider" a complete separation of the ESB from the national grid. The Government is not only considering this but the process is under way with a view to total separation by 1 July 2006. Fine Gael wishes to provide a "community dividend" to act as compensation for those living close to important infrastructure projects but it is clearly unaware that an initiative of this nature is being incorporated into the strategic infrastructure Bill. Fine Gael states it will prioritise the creation of a network of turbines to harness the potential of wind energy. Such a network is developing through the AER programme and the more recent REFIT programme.

The party will single-handedly reform the energy crops scheme, notwithstanding that this is an EU scheme and that reforms can only be carried out at EU level. The Government by comparison is actively engaging with the Commission on this issue. Likewise, Fine Gael says it will consider whether sugar beet should be included under the scheme. I hate to disappoint the party but the Commission has decided that sugar beet will be eligible for aid under the scheme and may be grown as an energy crop on set aside land to activate payments under the single farm payment scheme.

We can do more to exploit the potential of energy crops based on existing land use patterns. Oilseed rape can be used to produce pure plant oil for use in modified diesel engines and biodiesel for use in diesel engines without modification. Traditionally, the crop was grown in Ireland as a break crop to prevent disease caused by continuous wheat and to improve yields in the following year's cereal crops. Production of oilseed rape is relatively small. In 2005, 3,800 hectares was sown with oilseed rape. Irish farmers can achieve satisfactory yields of oilseed rape and many cereal growers could produce it with their existing complement of farm machinery. The total amount of oilseed rape that can be grown is limited by the need to keep successive crops at least four years apart in a cereal rotation and to keep a two-year interval with beet. This and other factors would reduce the potential area for oilseed rape to approximately 30,000 hectares. This does not take account of the 30,000 hectares previously sown with sugar beet, some of which could be used for oilseeds.

David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

Beet cannot be grown because it cannot be processed. The factories have been closed.

Tom Kitt (Dublin South, Fianna Fail)
Link to this: Individually | In context

I refer to the important work done by a number of people in this area. Professor Austin Darragh in the University of Limerick is doing work on biomass research supported by the Shannon Development Authority.

Quite clearly, Fine Gael is out of touch, not only with the public it seeks to serve, but also with what is happening in policy development. It is little wonder the party did not wish to participate in the all-party consensus, but I still hope it will get involved. The Government will continue to forge ahead with its innovative and ambitious plans to develop Ireland's renewable energy sector.

David Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

There is no beet left.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

I am delighted to have an opportunity to speak on this motion about renewable energy, especially renewable transport energy. Deputy Durkan's motion rightly condemns the failure of the Government to develop adequately alternative energy in this country. I commend Deputy Durkan and Fine Gael for tabling such an important motion. It is repetitive and almost a cliché to state that we are heavily dependent on imported fossil fuels and that there is a necessity to diversify our energy mix for security, environmental and financial reasons.

According to Sustainable Energy Ireland, our import dependency is nearly 90%. Although our total energy demand has soared since the late 1990s, the actual contribution of renewable energy technologies to the overall fuel mix has remained static at a negligible 2.2%. Wind power was responsible for 0.4%, biomass, 1.4%, landfill gas and other biogas, 0.2%, solar, 0.0019% and geothermal, 0.0003% of Ireland's overall fuel mix. When looking at the record of the Minister, Deputy Noel Dempsey, the important thing is to get the right number of zeros behind the decimal point. His achievement in zeros — it stretches to five zeros for biofuel — gives an adequate indication of the failure of the Government in its last year of office.

Next year, a few of us on this side of the House will hopefully get an opportunity to begin a significant and sensible energy policy for this country. People with an interest in energy matters are sick and tired of repeating that Ireland's high import dependency is dangerous and how vulnerable this position leaves us, yet it seems that the message still has not got through to the Government. Examining the measures in place to improve Ireland's energy portfolio, it is clear that the Government is operating in an ad hoc and disjointed way, with a pilot project here and a stopgap measure there, but no vision, drive or proper support in place to achieve the advances in renewable energy that are necessary.

I received an email today, which included a picture of the dictator of North Korea, Kim Jong Il, known as The Dear Leader, sitting beside the Minister, Deputy Noel Dempsey, at a UN-sponsored conference for failed broadband countries. I have to admit that the picture may well have been fabricated, but it is very appropriate because——

Fiona O'Malley (Dún Laoghaire, Progressive Democrats)
Link to this: Individually | In context

It is false. The Deputy cannot present something that is false.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

The Korean dictator lives in a fantasy world.

Fiona O'Malley (Dún Laoghaire, Progressive Democrats)
Link to this: Individually | In context

So is the Deputy as he is presenting something to the House that is false.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

He believes that he has a dynamic fisheries policy, that he has provided the whole country with broadband, that he has an intensive renewables policy and a series of fiscal measures for energy expenditure. Kim Jong Il is a fantasist, just like the Minister.

Fiona O'Malley (Dún Laoghaire, Progressive Democrats)
Link to this: Individually | In context

Someone in this Chamber is also a fantasist. The Deputy is making up these stories.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

A constituent contacts me regularly about broadband and he believes that the Minister and the North Korean dictator have a great deal in common. They live in a fantasy world.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

The Deputy knows that what he is saying is nonsense. Deputy Noel Dempsey is an excellent Minister.

Fiona O'Malley (Dún Laoghaire, Progressive Democrats)
Link to this: Individually | In context

On a point of order, is it appropriate for a Deputy to come into the House, admit to a fabrication and continue? Should he not withdraw such a remark?

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

The photograph is a fabrication, but the comparison is apt regarding policies which are just dreams.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

It is an absolute fabrication.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

I will withdraw it. It is astonishing to read in the Government's amendment to this motion that it believes that it has taken a comprehensive, holistic and cohesive policy approach involving all relevant Departments, agencies and stakeholders. I recently accused the Minister and the Government of sleepwalking on the issue of energy and being complacent and short-term in its attitude. Sadly, that charge can be sustained. There have been numerous announcements on new schemes that would give the impression that the Government has a comprehensive plan in place. However, when the details of these announcements are examined, it turns out that the bulk of the money is to be spent in 2008 and beyond, when the Government may not be in power.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context

Fianna Fáil Governments have often had to pick up the tab for mistakes made by Fine Gael-led Governments in the past.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

According to the quarterly renewable energy country attractiveness indices from the consultants Ernst & Young, Ireland is now ranked in 12th place, dropping six places since 2005. This league table is based on an assessment of national renewable energy markets, especially the fiscal supports and tariffs that are in place, a state's renewable energy infrastructure and the potential renewable resources that a state possesses. Ireland's ranking in the long-term index is especially disappointing because this index reflects unexploited resources of a state and Ireland has very significant sources of untapped wind and wave power. This indicates that the mechanisms in place to facilitate the development of renewable resources are simply not in place to allow greater investment in the renewables sector.

Spain and the US remain at the top of the long-term renewables index for attracting investment in the renewables industry because both continue to show strong growth in the renewables sector and attract the bulk of capital investment. Several countries from emerging markets, including India and China, also figure prominently as they greatly expand their renewable energy resources.

In December 2005, the European Commission presented a biomass action plan that aims to double the use of bio-energy sources, that is, energy derived from wood, waste and agricultural crops, in the EU's energy mix by 2010. At the moment, about 4% of the EU's energy needs are met through biomass. The European action plan advances 31 measures to promote the use of biomass in heating and cooling, electricity production and transport. The plan proposes that all member states develop their own national biomass plans. Germany, the UK and the Netherlands already have, or are preparing, such national action plans.

Ireland had been receiving support under the alternative energy requirement programmes up until last year, and we were given some funding under the new renewable energy feed in tariff. However, biomass is still a very underdeveloped resource in Ireland and accounts for a derisory amount of our energy system. The adoption of a national biomass action plan should be prioritised. Given the vast changes that are taking place in agriculture and given the needs for energy, the Government should put energy at the top of its agenda and develop a biomass energy plan following consultation with farming and energy interests.

There has been little advancement in solar power under the current Minister, even though we read of many exciting developments abroad. I was disappointed to hear him state that solar powered water heating units had been installed in just 687 homes out the 1.7 million in the State. The greener homes scheme includes grant aid for homeowners if they wish to install a solar thermal space. However, it gives no support or encouragement to business users or larger operators who may be interested in developing their solar power capabilities.

The Government's record on biofuels is deplorable. President Bush recently admitted that his country is addicted to oil and the same could be said for Ireland. Our transport sector is 100% dependent on imported oil. In other countries, rapeseed, corn, soya beans and other crops have been used to produce biodiesel and bioethanol.

I commend the Minister, Deputy Noel Dempsey, on introducing a biofuels mineral oil tax relief last August, which allows for €3 million in forgone excise duty per year. However, this was only a pilot project. The 2006 budget introduced an excise relief package for biofuels of more than €200 million, but an analysis of the figures reveals a pathetic level of investment, with €20 million to be spent this year, €35 million next year and €50 million in the following year. In other words, €150 million will be spent during the lifetime of the next Government. Almost certainly, the next Government, regardless of its composition, will have more ambitious and determined programmes because the current investment is too little too late.

In 2005, the Government failed to comply with the European Commission directive on the development of alternative fuel sources which required all EU states to bring the proportion of biofuels in the fuel mix to a minimum of 2% by the end of 2005 and 5.75% by 2010. Even with the introduction of the aforementioned programmes, we are nowhere near that target. The Irish Government has opted instead for a meagre 0.06% biofuels target for the period until 2005. A Minister in the previous Government was well known for his zero tolerance but this is a zero achievement Government in terms of biofuels. At the end of these programmes, we will still only produce approximately 165 million litres of biofuel. The most recent figures released by the Minister indicate that Cork City Council is using small quantities of biofuels in its transport fleet, which is commendable. However, when the Minister announced this initiative at a meeting of the Committee on Communications, Marine and Natural Resources, he also revealed that our national achievement in biofuels stands at 0.00002%.

Fiona O'Malley (Dún Laoghaire, Progressive Democrats)
Link to this: Individually | In context

Has the Labour Party taken any initiative on the matter?

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

The Deputy is welcome to attend the upcoming publication of Labour's energy plan.

Fiona O'Malley (Dún Laoghaire, Progressive Democrats)
Link to this: Individually | In context

I am glad the party is getting around to publishing a plan.

Tommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

We have always planned for this issue. The former leader of the Labour Party, Mr. Spring, who distinguished himself as a Minister for the Environment, took the first steps towards ending Ireland's dependence on oil.

The new EU strategy presented on the 8 February calls on each member state to take more action to reach the 2010 target of 5.75% of market share, a modest aim. The next Government should be even more ambitious. The EU programme makes some useful proposals but I am still waiting for the Minister to tell us when he plans to introduce them to Ireland.

Internationally, even an old fashioned politician like President Bush has extolled the virtues of biodiesel, seeing it as an interesting opportunity for America and the rest of the world. A number of countries have tried proactively to address oil dependence. In the EU as a whole, biodiesel output rose by 65% to 3.2 million tonnes in 2005, making the bloc the world's largest producer of the green fuel, according to the European Biodiesel Board. Germany is the top biodiesel producer, with an output of 1.6 million tonnes in 2005, followed by France and Italy. The Czech Republic and Poland also have interesting levels of biofuels production. By adopting Fine Gael's proposals, we will only be starting on the road towards ending our dependence on oil.

Brazil stands out in terms of biofuels. As far back as the mid-1980s, Brazil had a thriving ethanol industry which made use of the country's plentiful sugar cane resources. The industry shrank somewhat in the late 1980s and early 1990s but in 2003, the Brazilian Government decided that a new generation of alcohol powered cars should be taxed at 14%, instead of the 16% rate for exclusively petrol powered vehicles. Brazil's decision demonstrates that, if biofuel crops are to be grown or clean energy vehicles to be driven, incentives are needed. President Luiz Inaciao da Silva of the Workers' Party has stated that he wants Brazil to become the world leader in renewable energy. We could learn a lot from the Brazilian example.

The United States has also begun large-scale biofuel developments. The issue of refining biofuels will have to be addressed through capital investment programmes. The US bought cheap oil for such a long time that, as can be seen on American news programmes, the price of imported oil is beginning to hurt and the country is beginning to respond. We should emulate the many other countries that have embarked on the path set out by the motion before us.

What will happen in the aftermath of the plant closures in Mallow and Carlow? Many people believed Carlow represented a lost opportunity. I received numerous e-mails and telephone calls from Labour Party members in Munster asking whether the Government planned to take action with Greencore, a privatised State company. The fermentation and distilling machinery in Mallow is expensive and critical to the production of ethanol from sugar beet. I ask the Minister of State at the Department of Agriculture and Food, Deputy Brendan Smith, to address this issue because we need to know what is happening.

The Labour Party believes that a renewable fuels obligation should be introduced. Last year, the UK Government moved to boost biofuel use in cars by bringing forward a renewable transport biofuels obligation to ensure that 5% of all petrol sold in the UK would come from renewable sources by 2010.

An interesting discussion was held by the Committee on Communications, Marine and Natural Resources in respect of a comparison between excise duties and renewable obligations. Some of the committee's members believe a renewables obligation is the preferable option because that would put pressure on oil companies to roll out a biofuels network, whereas although excise duty relief is important for consumers, it would mean a loss in revenue to the Exchequer. An academic study conducted by UCD on stimulating the use of biofuels in the European Union, which merits close reading, found that excise duty relief is a key factor in persuading consumers to use biofuels.

I support the motion in general terms and commend Deputy Durkan on bringing it forward. It is timely and would be progressive. I urge the Minister, even in the dying months of this Government, to try to launch a dynamic renewables strategy.