James Bannon (Fine Gael)

It would also provide local farmers with an alternative cash crop that would sustain rural communities. Wood chip provides a more sustainable long-term income to farmers compared with biofuels, which are prone to competition from imports. Therefore, such a policy would also address Ireland's vulnerability to imported oil, gas, coal and biofuels, which in the longer term could have an impact on the location of foreign direct investment in the country.

The failure by the Government to implement a co-ordinated strategy on renewable energy will reduce the positive potential impact of the two new sites. This is because of the contradictory approach taken by different Departments. For example, farmers who grow such crops will lose their REPS and disadvantaged area payments. This is regrettable because farmers who wish to grow alternative crops will be denied those payments. Under the Department of Agriculture and Food's scheme for promoting the growing of renewable energy crops, a local farmer in REPS would lose €12,000 of existing income by growing 100 acres of such crops. Land in the counties of Longford, Westmeath, Roscommon and Offaly would be ideally suited to growing renewable energy crops such as willow, but it is less beneficial to grow the crops in these areas due to the clawback structure being put in place by the Department. Under the Minister's scheme, farmers will receive grants to grow elephant grass and willow. However, if they receive this grant, they will not be able to draw down their REPS or disadvantaged area payments on lands used to produce energy crops.

It is also imperative that the Government sets clear targets for the wood energy sector in Ireland. There are currently no targets in place to allow for the replacement of imported fossil fuels with domestic wood energy. Such a strategy is now urgently required and in tandem with this the Government must introduce a public service obligation. The public currently pays a small levy per unit of electricity which is then used to subsidise Bord na Móna for its peat production, as peat cannot compete with oil and coal. This levy is in place as peat is our only indigenous energy source. Therefore, it is vital to extend this levy to other indigenous energy sources, such as renewable energy. However, as it stands, unlike peat, renewables are at a commercial disadvantage as they do not receive support.

If the Government delays addressing the anomaly whereby farmers lose part of their current income supports if they grow renewable energy crops——