Joe O'Reilly (Fine Gael)

When we discuss bio-fuel we must be conscious of the food versus fuel debate. Bio-fuel production must not displace food production or cause price inflation in food. The food versus fuel debate came into sharp focus with recent food shortages and inflation in food prices. Bio-fuel production must, therefore, be controlled to ensure it does not displace food production.

Teagasc has estimated that up to 100,000 hectares of land could be used for bio-energy crops without damaging, interfering with or putting at risk our food production targets. Ireland has food surpluses and has the capacity to grow sugar cane and flax. A significant amount of land in my constituency, which I share with the distinguished Acting Chairman, Senator Wilson, was traditionally used to grow flax. Much of it this land is not suitable for growing arable crops and would be more appropriately used to grow flax. In addition, land previously used to supply the sugar industry, which has since closed in this country, could be used for bio-energy crop production. Ireland has the advantage of having land available to produce bio-energy crops without prejudicing food production or placing at risk the volume of food the country produces. Maintaining current food production levels and feeding the world's population must take precedence over other objectives.

Senator Brady was correct that no credit institution will support someone seeking to establish a furniture store or other enterprise that is not viable. Incentives are required to encourage farmers to produce crops used in bio-fuel production. Investment in this area will provide a return and will be labour intensive, a key advantage when jobs have been lost in construction and other areas.

Bio-fuel production must not lead to increases in the retail cost of petrol and diesel. This is a major issue in Border areas. If one adds 1 cent per litre to the cost of fuel, as envisaged under the obligation, introduces a carbon tax and factors in normal increases in the price of fuel, it is possible the price of fuel could reach a level that would put retailers along the Border and further south out of business. This issue needs to be addressed and I ask the Minister to raise it at Cabinet level.

I ask the House to adopt the Fine Gael Party's plan as a positive and constructive means of achieving the objectives of the motion.