Jim Walsh (Fianna Fail)

I would like to continue without interruption and I would like the Leas-Chathaoirleach to consider my point. There is merit in what I say if one reads the motion and the amendment. The amendment has no relevance to the motion.

In supporting the motion, we have moved a great deal in a short space of time towards embracing green energy and the requirement to reduce our CO2 emissions. Our compliance with the renewable energy directive is another significant step in this direction. The Government has recognised this in the past. In 2005 the first pilot programme for mineral oil tax relief on bio-fuels was introduced, covering three bio-fuel categories and amounting to €6 million in revenue forgone. I was pleased that two of the initial three companies, including Biogreen Energy Products Ltd, were based in Wexford. I know the work they have done in this regard. This was followed, in the 2006 budget, by an extension of the scheme, which was valued at approximately €200 million in excise duties. That embraces four categories of bio-fuels.

Bio-fuels will be one part of this and we must also consider developing technology. The Minister and his party have been strong on the matter of electric vehicles. This appears to have significant potential. A decade or more ago bio-fuels were seen as very significant players in moving towards greener energy policies. However, embracing that policy, particularly in the United States and elsewhere, raised ancillary or peripheral difficulties. Using land for bio-crops had an impact on agricultural products and the growth of food and, as a consequence, on commodity and food prices. I understand the European Union is examining a more sustainable approach in this area and this needs to be done. However well intentioned policies are, they can have unforeseen knock-on effects in other areas which need to be taken into account and factored in in what we do. Having said this, it is accepted by everybody that bio-fuels will have a contributory role to play in our energy policy.

The new scheme will have four product types, including bioethanol which will be used in a blend of up to 5% in petrol and EN 590 which will contribute up to 5% in the blending of diesel. In the pure plant oil category, rape and other such products, including wheat, can be fully converted and used in vehicles. Some movement has been made towards this but I am not sure to what extent. Overall, the success of the policy has been underpinned by the fact that approximately 200 million litres of these products combined have availed of mineral oil tax relief and this will make a significant contribution to achieving the targets we have set and which the European Union obliges us to meet. The main product is EN 590 which is mixed with diesel and has significant potential. In the White Paper on energy policy the Government set a 10% target and committed us to this bio-fuel obligation. I welcome the fact that the Minister and the Department embarked on a consultation process and received more than 40 submissions. Their input to the final drafting of the bio-fuel obligation Bill which is taking place will be reflected in the Bill when published. It is also significant that almost half of EU member states have introduced bio-fuel obligations; therefore, we are playing our part in this regard.

The Minister and the Department appointed the National Oil Reserves Agency to be the administrator of the scheme. It is heavily involved and has a responsibility to ensure we meet EU and international requirements for maintaining emergency oil supplies. It leased an oil tank farm in New Ross from a local company and filled it with emergency oil supplies. As an aside, the port of New Ross would prefer if the product was not being stored but moving in and out and generating activity and revenue in the port. However, it is worth noting that it is being stored. The agency is funded by a levy on mineral fuel which will be extended to cover bio-fuels and meet the additional costs attached to administering bio-fuel obligations. The levy includes a bio-fuels element and increased from €0.01 to €0.02. It is important and careful consideration is being given by the Minister and the Government to ensuring this transformation is made in a way that does not significantly increase costs for the transport industry. This is essential at all times. Competitiveness in the economy is a major issue and challenge for us. We all recognise that there has been slippage in the past decade with the economy in a very significant growth graph. It is important that in anything we do by way of the levy or transference into the green energy sector we ensure we do not add too significantly to our cost base.

We must have regard to what is happening in other countries. As this is taking place in other countries, it should underpin our competitiveness. At local government level and in State agencies there is a propensity to load costs, which are expenditure items. If these expenditure items are not managed very tightly and efficiently, it means inefficient costs are being added to the economy. We need to be mindful of this.

I note the introduction of a bio-fuels obligation certificate which I understand will be electronic. A certificate will be claimed and awarded for the supply of each litre of fuel oil. Conditions are attached to how people will qualify for them. The administrator will be involved and have evidence. He or she will have the power to reject or revoke certificates if information is subsequently found to be false. These will be tradeable in the industry at an indicative selling price of approximately €0.45 per litre. This will assist those specifically involved in the green fuels sector as distinct from the hydrocarbon sector. It will also enable the hydrocarbon sector and industry to comply by being able to purchase certificates and ensure they meet the requirement and play their part in reaching the 10% target. The Bill is being drafted and will come before the House. I look forward to debating it when it does.