Fergal Browne (Fine Gael)

It is an energy issue and the Department of Communications, Marine and Natural Resources would be leading the way if it tackled this issue. For the first time ever on the doorsteps I am hearing complaints about the VAT rate on fuel bills. I never paid too much attention to my ESB or gas bill but now I do.

I agree with Senator MacSharry on a VRT waiver for hybrid cars. The Government, to be fair, has led the way in areas such as the smoking ban and the plastic bag levy. It can do the same with hybrid cars. A bolder and more imaginative policy direction in this area is needed.

Biofuel production must be taken more seriously by the Government. In Carlow,-Kilkenny, for example, there is a biofuel outlet in Goresbridge, which does not give much choice to those motorists in other towns. Until biofuels are available in every petrol station, motorists will not convert to them. Some years ago, car owners changed from leaded to unleaded petrol. A similar transition can be made with biofuels. Biofuel production would also create a new market for crops such as sugarbeet, particularly with the loss of the sugar industry. Even wheat, as opposed to beet, could be used and give another option for tillage farmers in the south east. Ireland can follow the example of Iowa which has been developing alternative energy industries for the past 30 years.

I commend the Government on bettering energy efficiency in new homes. I urge it to extend the grants available to home owners to carry out energy efficiency works. The essential repair grant covers insulating houses whose occupants are over 65 year olds. SEI also has a grant system in place for insulating existing houses. If we encourage people to audit the energy efficiency of their homes, they will more than likely find that their insulation is not adequate. If all houses were insulated properly, we could reduce fuel consumption for heating.

While the Cathaoirleach believes VAT on fuel bills is a matter for the Department of Finance, I urge the Minister of State to consider it. The biofuel issue must also be examined. Greencore will not get involved in biofuel production on its sugar factory sites. I would rather a biofuel production facility on a greenfield site. As our energy supplies are vulnerable we must examine new energy resources.