John Paul Phelan (Fine Gael)

I am glad of the opportunity to discuss the Green Paper on energy and to support the Fine Gael amendment to the Government's motion. The Green Paper is a case of too little, too late and we will not know for some time whether it will bring any changes to our energy supplies. The policies it proposes should have been introduced a number of years ago because we are now faced with continual energy price increases. I do not want to be overly critical because there have been some positive developments, such as the energy grants announced by the Government several months ago. However, the paper is heavy on aspirations and low on detailed policies. It is disappointing that we were not given much by way of detailed costings or concrete information.

It is not often I agree with Senator Leyden, but he made some valid comments about the potential for renewable energy supplies. I have been a vocal advocate for developing wind energy and have spoken several times in this House about the difficulties faced in terms of connecting wind farms to the electricity grid. These difficulties continue to arise throughout the country. While wind farms need to be strategically positioned, they should be developed where a suitable location is available. For wind energy to become a viable option, we need to build a direct interconnector between the east coast of Ireland and the island of Britain. That should be done sooner rather than later because, while wind energy makes up approximately 8% of energy supplies, another source of energy will be needed when the wind does not blow enough to meet requirements. That is why the interconnector is essential.

It is another example of where the Government is sadly lagging behind. It set up a process a number of year ago whereby tenders were sought for the construction of an interconnector between Wicklow and Wales, but nobody from the private sector seemed to be interested at the time. It is essential the Government builds that interconnector as part of the State's infrastructure sooner rather than later. If we are serious about providing alternative energy sources, then wind and tide energy will be part of it. Those energy sources are not 100% reliable and we need an interconnector to ensure that if there are periods in which those sources of energy are low, external sources are available to fill the gap. The interconnector is, therefore, more necessary now than ever. Whatever about the interconnector being operated and managed by a private company, its construction should be part of public infrastructure. We should grasp that nettle sooner rather than later.

It is important we promote and support those trying to advance alternative energy sources. Previous speakers spoke about bio-fuels, an area on which I have spoken several times in the House. We saw the closure of the sugar plants in my area of Carlow and in Cork and the demise of that industry. A detailed report has been carried out by Cork County Council in conjunction with others into the viability of an ethanol production plant on the site of the old sugar factory in Mallow. As Senator Bradford said, that report warrants analysis and I hope that in the run up to the budget, it is thoroughly examined to see if there are any supports which the Government could provide to ensure bio-fuel production takes off.

Until now, we have not seen much take-up and that is largely due to the fact there is no incentive for producers. I am sure the Minister of State, Deputy Brendan Smith, will agree with me that from an agriculture point of view, we need to ensure we provide for alternative enterprises among those involved in farming and those who we wish to become involved in it in the future.

Bio-fuel is an area which has not been sufficiently developed and there is still great potential. The budget will provide the Government with an opportunity to encourage more people to go down that route in future. There is a strong case to be made for the complete exemption of bio-fuels from excise duty. I have not made up my mind on that but I urge the Government to examine all options in the run-up to the budget because the only way we will get sufficient numbers to become involved and to build up a viable bio-fuels industry is if there is a monetary incentive for them to become involved in that sector.

It is important we become more reliant on indigenous sources of energy. In that regard, it is essential bio-fuels, wind energy and all other energy options which we can produce are thoroughly pursued and supported by the Government when it comes to drafting the budget which will take place in the coming weeks. We are too reliant on fossil fuels and we need to develop all other options. In terms of the supply and cost of energy in future, we must ensure we have a viable domestic energy sector.