Tom Parlon (Laois-Offaly, Progressive Democrats)

I am aware Ireland is not unique in this regard. Every other country which has adopted the biofuels scheme and which is foregoing excise duty has been required to obtain approval from the EU Commission regarding State aid. The Senator referred to sugar beet as a possible biofuel. Sugar beet was designed for the production of sugar. Oilseed rape is the subject of the proposed project in this country. This product qualifies for EU aid under the area aid scheme and this is the reason it required to be approved. Sugar beet does not qualify for a State aid at present but under the new regime it will. The most economical use of sugar beet at present would be in the manufacture of sugar. Even though one of the sugar beet factories has closed, the intention is to process the national crop in Mallow. Sugar beet farmers currently earn well in excess of €50 per tonne but I suspect they would earn substantially less if the crop were being used for biofuel production. The Government will keep this matter under review.