Paul Bradford (Fine Gael)

I wish to make a few comments on the motion and to refer to the possibility of bio-fuel production in the former sugar factory in Mallow. On the broader issue of alternative energy, I welcome the Government's timely Green Paper on energy. From a public policy point of view, there is possibly no greater issue facing the country than that of energy. Virtually every country in the European Union faces the same challenges we face and we must ensure that our support for and development of alternative energy matches the best in Europe. Through the use of wind, wave, geothermal and solar power, we must seek to become the leading exponent of alternative energy. We have the natural resources if we can put them to correct use. Significant investment will be needed by the Government and the first step must be taken in the forthcoming budget.

I acknowledge some progress was made in last year's budget by providing tax incentives and the energy grants announced some time later gave further incentive. I congratulate the Minister on the energy grants scheme operated by Sustainable Energy Ireland. I, along with many others, had demanded such a scheme. There has been significant uptake of the alternative energy grants. I hope that once the initial €20 million has been allocated, the fund will be topped up. Moving householders to alternative energy systems, including wood pellet, geothermal and solar, is good for the economy.

I wish to speak about alternative fuels and, in particular, ethanol production. The Minister of State, Deputy Killeen, who has responsibility for labour, is aware of the difficulty we have had in Mallow following closure of the sugar factory and Greencore's failure to resolve the redundancy issue. We have an unused sugar factory in Mallow, thousands of farmers affected to some degree, hundreds of redundant workers and an industry that has disappeared, namely, the sugar beet industry. However, we have an opportunity to turn disaster into progress and to produce ethanol in Mallow. Obviously, there were doubts over whether it was purely aspirational to do so. Fortunately, our colleagues in Cork County Council, with full cross-party support, commissioned an independent consultant's report on the viability of producing ethanol at the former sugar factory in Mallow.

Cooley Clearpower Research submitted its report to the council three weeks ago. The report clearly shows it would be possible to produce ethanol in Mallow from sugar beet, wheat and other crops. Equally importantly, it also showed that it can be economically viable to do so. We are all aware that sugar beet, wheat and other crops being produced in Ireland can be used to produce ethanol. However, we must ensure that it is financially viable for the farmers to grow the crops and for a producer to take over the plant and process the crop into ethanol. The study contains very interesting statistics and I hope the relevant Departments are studying the report. The report shows that with modest excise duty reductions, even below the levels available in the rest of Europe now, it would be possible to pay the farmers a viable price for sugar beet to be processed into ethanol in Mallow. We have both European obligations and obligations under the Kyoto Protocol to ensure that a certain percentage of our fuel supply will come from the use of ethanol or bio-diesel and Mallow offers a solution.

The Irish tillage industry is at the point of crisis and collapse as a result of the ending of sugar beet production. Unless we can find a use for sugar beet and farmers can continue to grow it for financial reasons and for crop rotation, the entire tillage industry could shut down and thousands of jobs could disappear with it. In preparing his budget, I hope the Minister for Finance, in consultation with the Ministers for Agriculture and Food, and Communications, Marine and Natural Resources, will study in great detail the consultant's report on the possible use of the sugar factory at Mallow for ethanol production and give the financial incentives, which are modest by international standards and modest by the standard of the incentives announced in last year's budget.

If the Government is willing to have the plant converted into a bio-fuel production facility, it can happen. By doing so, we can ensure that sugar beet continues to be grown, crop rotation can be maintained, thousands of spin-off jobs from the tillage industry can be maintained and, from the broader view of the economy, we can produce a crop for fuel purposes. We need to be as ambitious as countries such as Sweden which has declared that within ten to 15 years, it will be entirely free of a dependency on foreign fuels, oil in particular. We must have a similar aspiration. We must aim to be the best in Europe in the area of alternative fuel. I know that Senator Callanan, who is also interested in the subject, will confirm that we can do the business in Mallow. We can turn sugar beet into a valuable fuel commodity. I hope the Minister for Finance will use December's budget to introduce the tax incentives which could make that project a reality.