Dan Boyle (Cork South Central, Green Party)
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Question 68: To ask the Minister for Finance if the vehicle registration tax relief for flexible fuel vehicles and the excise relief for biofuels measures announced in the 2006 budget have been introduced; the number who have applied for each of the measures; the number of approvals granted in each instance; and if he will make a statement on the matter. [19446/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Vehicle registration tax, VRT, relief for flexible fuel vehicles, as announced in the 2006 budget, was provided for in the Finance Act 2006 with effect from 1 January 2006. We have been informed by the Revenue Commissioners that, to date, 12 flexible fuel vehicles have availed of the VRT relief, although this low number reflects the fact that legislation underpinning this relief was only enacted in late March. It was also announced in the budget that the VRT relief for hybrid electric vehicles, in place since January 2001, would be extended to the end of 2007. By the end of April 2006, 922 such vehicles had availed of the relief since its inception.

A new large-scale scheme of biofuels excise relief was also announced in the 2006 budget as a development from the preceding pilot biofuels excise relief scheme that has been in operation since 2005. The new scheme will provide for excise relief on up to 163 million litres of biofuels per annum, cost more than €200 million over five years, starting this year, will when fully operational result in CO2 savings of more than 250,000 tonnes per annum, meet a target of 2% transport fuel market penetration by biofuels, help reduce our dependency on conventional fossil fuels, and stimulate activity in the agricultural sector.

The process of applying for state aid clearance from the European Commission for this scheme is under way. Once approval has been granted, the Department of Communications, Marine and Natural Resources will advertise the scheme and set out the procedures for applying for the excise relief.

Dan Boyle (Cork South Central, Green Party)
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The Minister is basically saying that, under the first measure, 12 vehicles have been granted tax relief and, under the second, no additional tax relief has been granted. Does this not give the lie to the fact that these are not just green veneer measures in what the Minister for the Environment, Heritage and Local Government described as the greenest budget ever? Given the history of previous budgets, however, that was not a very proud boast. If it was a green budget, it was the most pallid of greens.

The second measure in particular is hard to accept.

Brian Cowen (Laois-Offaly, Fianna Fail)
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Which one?

Dan Boyle (Cork South Central, Green Party)
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The excise relief for biofuel measures. That has already been the subject of a pilot scheme measure, and not a very successful one because of the limitations placed on the scheme by the Minister's officials. That took 18 months to secure approval from the European Commission. After making a subsequent announcement to extend that scheme, the Minister says the process of getting the EC to accept that it is not state aid has not yet begun, halfway into the budgetary year.

Brian Cowen (Laois-Offaly, Fianna Fail)
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It has begun.

Dan Boyle (Cork South Central, Green Party)
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Where is the evidence? Why has it not begun since the Budget Statement or since the approval of the Finance Act?

Brian Cowen (Laois-Offaly, Fianna Fail)
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It is being done.

Dan Boyle (Cork South Central, Green Party)
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Given ever-increasing energy prices, these types of initiatives are not even toe in the water measures. If the Minister is serious about trying to transfer energy dependence from imported and fossil fuels, his officials should be taking a more proactive role in these measures.

Do the VRT relief measures for flexible fuel vehicles apply to motors imported by individuals rather than the standard importation of large numbers of vehicles for dealerships? There might be an avenue open to people to avail of this relief because of better technologies in other jurisdictions.

In terms of both measures, what does the Minister hope the possible take-up will be by the end of this budgetary year? If he thinks that only several dozen people will have availed of the first measure by his next and final budget and the second measure will not yet have come into force, he will not be able to tell the House that he has introduced any measure that has been effective in terms of tackling energy dependency.

Brian Cowen (Laois-Offaly, Fianna Fail)
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We are required to get state aid approval for this initiative.

Dan Boyle (Cork South Central, Green Party)
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The Minister knew that.

Brian Cowen (Laois-Offaly, Fianna Fail)
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I know and I am applying for it.

Dan Boyle (Cork South Central, Green Party)
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It took 18 months the last time.

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Deputy should hold on and listen if he wants to hear my answer. He said I have not applied for approval, but approval is being applied for. The Commission must give its approval and we hope to have that in the coming months. I do not expect it will take 18 months as it did the last time.

I am tired of people coming into the House in a panic and asking why I have not done this, that or the other on directives. Even when we abide by EU regulations and requirements, the Opposition has another crib. What I have introduced, excise relief for 163 million litres of biofuels, is 20 times better than what was in place previously. I have implemented the full requirement I received from the line Department and we must get the initiative up and running. It will be done on that basis.

I presume flexible fuel vehicles imported individually rather than through dealerships would have the benefit of the VRT relief, but I will have to verify it. I do not have the information in front of me, but I will check it for the Deputy.

Rather than belittle the situation, which I suppose he will do anyway, the Deputy, since he is the green man, so to speak, should advocate to people the adoption of flexible fuel or hybrid electric vehicles. That would be a more constructive approach rather than trying to misrepresent my position when I have already made an application for this approval.

Dan Boyle (Cork South Central, Green Party)
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I thank the Minister for telling me what my job is. Part of my job is keeping him accountable for promises he made in this House.

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Deputy has been telling me what mine is.

Dan Boyle (Cork South Central, Green Party)
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He has not been living up to those promises.

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am.

Dan Boyle (Cork South Central, Green Party)
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There has only been approval for 12 vehicles in five months and no applications for the second scheme.

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am not buying the vehicles. Should I buy them as well to please the Deputy?

Dan Boyle (Cork South Central, Green Party)
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If the Minister announces a measure in the House, it is incumbent on him to encourage the take-up and use of it. He is willing enough to see property tax relief being used. Why is he not willing to see green tax measures being taken up?

Brian Cowen (Laois-Offaly, Fianna Fail)
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What about the Deputy himself? What is he doing about it?

Dan Boyle (Cork South Central, Green Party)
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I put it to the Minister that it is because the vested interests he represents are not represented by people who produce biofuels or biofuel vehicles. If he were serious about measures such as these, he would put incentives in place. I asked the Minister what type of take-up would be in existence by the time of the next budget. He also told the House there had been 12 approvals, but I asked how many applications had been made for the first measure.

Brian Cowen (Laois-Offaly, Fianna Fail)
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I do not have that information available but will try to get it for the Deputy. I am not in a position to state what impact the measure will have before the next budget until I get EU approval and get the measure up and running.

With regard to vested interests, I represent 13,000 people in Laoighis-Offaly, ordinary working people like those Deputy Boyle represents. I have been doing this for 22 years and have never represented any Shell or Esso company or anyone else. The Deputy should cut out the conspiracy crap.