Joan Burton (Dublin West, Labour)
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Question 12: To ask the Minister for Communications, Energy and Natural Resources his views on the potentially huge consequences for the world's poorest people as land for food and land for fuel compete with each other; and if he will make a statement on the matter. [23086/07]

Eamon Ryan (Dublin South, Green Party)
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I am aware of the need to strike a land balance between energy and food crops. The European Commission has indicated its awareness of general sustainability issues regarding biofuels and has signalled its intention to introduce incentives and support systems to avoid such issues. Specifically, it intends to encourage the development of "second generation" biofuels which can be produced from non-food crops or from areas that do not conflict with food production.

To this end, it is anticipated the Commission's renewable energy legislative proposals, to be published at the end of 2007, will contain targets for biofuels market penetration, subject to the introduction of sustainability criteria and the coming on stream of second-generation biofuels. The Commission also notes that European demand for biomass, especially biofuels, could contribute to improving trade relations with the European Union's trading partners, in particular developing countries, many of which have the potential to produce and export biomass and biofuels at competitive prices. It will be important to strike a careful balance to ensure the optimum outcome in terms of reducing greenhouse gas emissions in transport, providing opportunities for developing countries and, at the same time, minimising risk to food production. Ireland's biofuels obligation will take account of EU sustainability initiatives relating to biofuels and I intend to work very closely with my EU colleagues in addressing this complex challenge for biofuels policy.

Liz McManus (Wicklow, Labour)
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When the proposals are published, will the Minister ensure they are debated in the House because this is a major issue? There is always the danger that as the notion of renewable energy is promoted, we could create imbalance and unfairness elsewhere. Perhaps the Minister will elaborate on what he thinks the EU could do to ensure the poorest people of the world are not put at a great disadvantage as the battle develops between the use of land for food and the use of land for fuel. Grant aid alone is not an effective way to address this issue. Presumably, more effective measures could be used.

Eamon Ryan (Dublin South, Green Party)
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I would very much welcome a detailed debate but this may take more than a debate in the House. For example, this could be a subject for a committee because it is highly complex and technical. Second generation biofuels have different implications for generating feed stock, as they are generated from a general organic source rather than a food source. Such issues require much analysis and it would be appropriate for the Oireachtas to go into detail on this so that we have a proper understanding of market conditions. They are complex not only in the context of food prices for people in the developing world but also in the context of environmental consequences, as we could end up subsidising or supporting biofuel production elsewhere which has a detrimental environmental effect. I commend the Deputy's suggestion that the Oireachtas examines this issue and I look forward to working with her in this regard so that we have a clear outcome.

The best and most effective approach is to reduce demand for fuels and transport in general. When energy prices doubled in 2005, demand for fuel in Ireland increased by 8% in the transport area. That inexorable growth will put us under pressure and it will lead to pressure for these fuels as the world approaches a peak in oil production. The sustainability issue can be addressed. For example, the UK has moved towards a system of labelling the sustainable sources of a biofuel crop. That is a progressive development and we should look to progress that in Ireland. Similar measures have been introduced in Germany and Holland. Although the world trade rules in this area are highly restrictive, that may help us address a number of environmental concerns.

The food price issue is the result of American biofuels policy where the development of bioethanol from wheat and maize is causing a large spike in wheat prices globally. The European Union, therefore, does not have a specific role in this. The development of biofuels will have a beneficial long-term consequence for Ireland in securing its fuel supply if there is an energy shock. Significant waste supplies can also be used for biofuels.

Simon Coveney (Cork South Central, Fine Gael)
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We could debate this subject for hours. Food crops have been the winner in the competition for land between food crops and energy crops. Has the Minister made representations to the Tánaiste and the Minister for Finance in the build up to the budget to support energy crop production in Ireland, particularly on set aside land, on which farmers are not permitted to sow food crops anyway, as this would not impact on the food industry? If not, why not given the Minister promoted that thinking for a long time when in Opposition?

Eamon Ryan (Dublin South, Green Party)
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I will do whatever I can to ensure Irish farming benefits from biofuel supports rather than distant sources, without infringing world trade rules, which could result in Ireland being pulled up and a stop-start approach for the industry. My colleague, the Minister for Agriculture, Fisheries and Food has a key role in this regard. We must be innovative and, at the same time, careful. The energy White Paper sets out the best approach, which is to move towards an obligation system for fuel suppliers to carry a set biofuels quotient rather than a grant support system so that the oil supply companies, as opposed to the taxpayer, carry the cost. However, within that, support measures should be implemented so that Irish farming is provided with a positive and lucrative market in the long run. I would support that, while taking into account the general policy issues relating to global food prices, of which I must be cognisant.