Paul Bradford (Fine Gael)

I thank Senator Finucane for the opportunity to support the motion. I am disappointed the Government felt obliged to table an amendment because every Member recognises the need to develop an energy strategy to address our dependence on oil and to replace oil with renewable resources.

Significant research is available on alternative energy sources but I will concentrate on the production of ethanol and biofuels generally. I have become more interested in this subject because of the scenario that has arisen in north Cork. As a result of a decision taken at European level, our sugar industry has been shut down. The sugar factory in Mallow could be demolished but if a different set of circumstances prevail, it could be converted to produce ethanol from a variety of crops, including sugar beet and wheat. I call on the Minister of State to enter into urgent negotiations with all those involved in the sugar industry, including Greencore, the beet growers, the Minister for Agriculture and Food and EU Commission officials to ensure the compensation package resulting from the cessation in sugar production is not dependent on the factory being demolished.

At the most recent European Council meeting, Heads of State declared energy policy to be their main political priority for the next 12 months and declared their intention to work towards the development of renewable energy production. However, the Agriculture and Rural Development Commissioner appears to have signed a directive indicating that compensation to the Irish sugar producers will not be paid in full unless the former factory in Mallow is demolished. The cessation of sugar production at Mallow should be enough. The plant should not be demolished because a number of organisations and companies are considering whether to use it to produce ethanol. This technology is in use worldwide and it is not rocket science. Large volumes of ethanol are produced in north and south America.

The factory in Mallow could produce fuel for cars throughout the State with minimal adjustment needed to the plant and it could also play a major role in keeping the tillage industry alive. It is a win-win scenario and I appeal to the Minister of State to discuss with the Minister for Agriculture and Food the need to review the fine print of the EU sugar proposals agreed last November in Brussels. The aim of the proposals was to cease sugar production in Ireland and other member states, which has been achieved. Why is it necessary to demolish the plant in Mallow, which is 75% ready to produce ethanol? A minor adjustment is needed to enable the plant to produce ethanol to run cars, vans and trucks. This opportunity is staring us in the face and it would be disappointing, and politically wrong, to fail to secure the plant for the future needs of the ethanol industry.

The production of biodiesel should also be encouraged. I welcome the incentives proposed by the Government in this year's budget but, as a first step, a minimum of 5% of all diesel sold at the pumps should contain biodiesel and 2% of all petrol sold should contain ethanol. This is not rocket science and Fine Gael and others have made this proposal. Germany and Italy introduced these thresholds at their pumps this week. They will have no impact on the price of the product or on engine performance. A minor legislative amendment in this regard would produce an overnight demand for biodiesel and ethanol. Incentives are needed to ensure farmers produce the necessary crops and to ensure people use alternative fuels. Oil supplies will not increase, prices will continue to increase and oil will become scarcer over the next 25 years. Ireland has an opportunity which should be grasped with both hands to incentivise the growing of crops to produce biofuels. The Government needs to address the incentives required to produce biodiesel, notwithstanding the positive step taken in the budget.

However, in the short term, the sugar plant at Mallow could easily be converted into an ethanol plant. While there is commercial interest in the plant, many issues still need to be addressed but it would be a shame and a sad reflection on all of us politically if its demolition were permitted. An opportunity exists to build a renewable energy industry for the State in Mallow and that plant needs to be retained because it could play a major role in an alternative fuel industry.