Michael McCarthy (Labour)

I welcome the Minister. In recent times we have held a number of debates on aspects of environmental policy, the pros and cons of governmental proposals and, as Senator Ó Brolcháin noted, submissions from Opposition parties. However, the Bill before us deserves closer scrutiny. We rely on expert advice on most issues. In researching material for my contribution I studied a submission from the Irish Bioenergy Association. I imagine the Minister has already considered that association's recommendations but I wish to outline them for benefit of the House.

There is no doubt we are overly dependent on fossil fuels and need to encourage bio-fuel production, not least in the light of the employment generated in rural areas. The production of bio-fuels can help to kick start economic activity in rural areas. With insight and strong support from the Government, we can rebuild the rural economy by this and other means, including marine activity.

Noting the resemblance of the scheme provided for in the Bill with the one in place in the United Kingdom, the association expressed its concern that it might not be workable. According to its submission, 89% of the bio-fuels used in the UK market are imported, primarily from Brazil and Argentina. I have previously discussed, in the context of overseas development assistance, the impact of bio-fuel imports on developing countries.

We must also be mindful of the scheme's impact on the consumer. We saw the immediate effect of the carbon tax in terms of the price at the petrol pump for petrol and diesel. This is a very car dependent country because, unfortunately, our public transport system is not at the level where one could, for example, take the train from Cork city to the Beara Peninsula. In terms of further carbon taxes and levies, we must be mindful of people in rural areas who are on lower incomes or without jobs and who continue to rely on their cars for transport. The cost of any further obligations will be shared by everybody, although some sections of society have more disposable income and can take more of a hit than those already struggling to meet rent payments, mortgages and household bills. On the Order of Business last Thursday I raised the issue of the increases announced by permanent tsb to its interest rates. An increase of 0.5% means an extra €60 on a mortgage of €200,000. We need to be mindful that families are already struggling to meet utility bills, put food on the table and negotiate out of high mortgage repayments.

Road transport services depend on imported fuels for 99% of their needs. Some 70% of the bio-fuels used here to date have been imported.

When the Minister of State at the Department of Foreign Affairs, Deputy Peter Power, was in the House recently to debate overseas development assistance, we spoke about the impact of bio-fuels on developing countries. Too often an issue comes across as being straightforward at first but complications soon become apparent when it is addressed it in more depth. An example concerns bio-fuels and climate change. Oxfam has produced a report on Tanzania, where vulnerable groups are being forced aside to make way for bio-fuel plantations. Mtamba is one of several Tanzanian villages which skirt the 9,000 hectares of land in respect of which Sun Bio-fuels Tanzania Limited, a subsidiary of the British company, Sun Bio-fuels, is finalising an investment deal. The 11,000 people who live in the area use the land to produce charcoal, firewood and herbs for food and medicines. Significantly, the land allocated for bio-fuel production includes the swamp that offers the only source of water for the villages in question. It is unclear what will happen to this water supply as a result of the bio-fuel development. Will businesses making commercial investments in such schemes consider the implications for the people who depend on the land they plan to use? The evidence in every other developed country would suggest differently. Even in poor countries where bio-fuels may offer a new commodity and increased employment, the potential costs, including environmental damage, land displacement and diminished food and water supplies, are severe. That is an issue that will never be too far from a debate such as this. I urge the Minister to be mindful of the hard-pressed consumer, especially in today's climate when any proposed scheme with an obvious cost implication is being introduced.