Fiona O'Malley (Independent)

I welcome the Minister and the Bill. We have had a useful debate. Senator Quinn, in particular, has highlighted many of the concerns people have. I sought a similar measure to the current one in an Adjournment debate in 2004. This measure was mooted in previous Finance Acts but now it is being put into legislative form. Since that time, there have been changes in the bio-fuel sector. I was extremely enthusiastic about starting up an indigenous bio-fuel industry. The potential was evident, especially in rural areas. However, at that time we did not see the downside, which has been alluded to by several speakers in the context of developing countries, for example Brazil, where the rush to provide space to grow the crops has had a detrimental effect on the environment and climate. That is why we need to be careful. It is not reason enough to stop progress in this area but it is reason to cause us to reflect. That is why I was glad of Senator Quinn's contribution in particular. I understand why the Minister said the subject terrified him somewhat in that there was much alarmist talk. When one is not an expert one can rely heavily and quickly on any scientific information to back up one's opinion. However, Senator Quinn made a fair point about some reservations. As we move towards growing a bio-fuel sector, we need to be cognisant of the lessons we can learn from the first generation bio-fuels to the more functional second generation bio-fuels.

Senator Quinn made a valid point about the absolute or true costs, environmental and otherwise, of producing bio-fuels. We should also be mindful of the additional cost of having bio-fuels transported to this country. That is something that is sometimes overlooked and of which we need to be cognisant. Other speakers referred to the development of an indigenous bio-fuel industry. We would all prefer to see that. Previous speakers spoke about the difficulty of ensuring that the benefit will accrue to the industry in this country and provide opportunities for farmers, whom I see as being agricultural or environmental entrepreneurs. There is great scope for diversifying the traditional agricultural sector. We should not be in the business of protectionism and I accept it is not easy to build certain mechanisms into legislation so as to ensure the benefits might accrue to the indigenous sector.

Senator Quinn made an interesting point about biomass and energy efficiency in terms of turning it into liquid fuel. He suggested we should focus on how to use biomass to generate electricity in power stations. As Senator Ó Brolcháin indicated, 10% of transport fuels are to come from renewable sources. Everyone thinks of electric cars as being environmentally sound, but they are not. It depends on how the electricity is generated. If it is generated through energy efficient means, not through the burning of fossil fuels, then it is greener fuel. He also referred to nuclear power, its sustainability and whether it is environmentally sound. We should have a debate on nuclear energy. The Minister is keen to have it. I am interested in seeing more power stations being fuelled by biomass. If we choose that option we will arrive at a greener target. I speak in the context of the whole cost of producing the energy.

By 2020, a total of 20% of electricity generation will come from renewable energy. Much of that will come from electric sources, such as electric cars, but we should ensure that the electricity is produced in a green way, such as wind or the burning of biomass. We tend to overlook certain issues when we all jump on a bandwagon because we think something is a good idea. Senator Quinn in particular mentioned that the burning of biomass for liquid fuels is not the most energy efficient way to produce energy. We should be careful to ensure that whatever incentives are provided to help us achieve our targets on renewable energy, that they do not end up having unforeseen negative consequences. I welcome the Bill.

I am often surprised that people have not taken to dimethyl ether, DME. I am pleased the Minister, Deputy Ryan, is nodding. I have spoken to him previously about the matter. DME has not reached the mainstream yet. In five years we will all be talking about it and we will all see it as a new, cleaner, energy efficient source of power. It presents enormous potential in this country. I hope we do not end up putting into legislation something which we will no longer need in the future. DME will become far more mainstream in a way that bio-fuels were approximately ten years ago. DME will provide us with a green, energy-efficient way of sourcing fuel. It would be regrettable if we ended up tying ourselves in knots because of legislation we have enacted. The green economy is in good hands in the hands of the Minister, Deputy Ryan. I welcome the Bill and look forward to what I hope will be its swift passage.