Conor Lenihan (Dublin South West, Fianna Fail)

I propose to respond to amendments Nos. 3, 4, 6, 7, 8, 12, 13, 28 and 32 together. I thank Senators Norris, O'Reilly, Walsh, McCarthy, O'Toole and John Paul Phelan for contributing to the debate on this matter. I assure them the Minister is very much on board in relation to the spirit of the proposed amendments. The national bio-fuel obligation will incentivise the sustainable growth of the indigenous bio-fuel market, support indigenous bio-fuel producers and expand production. The EU sustainability criteria will also provide a competitive advantage for Irish and other EU producers by ensuring non-EU imports meet strict environmental guidelines. We must, however, remain compliant with EU and WTO guidelines on trade, meaning we cannot restrict imports unfairly.

The amendments largely suggest Ireland should mimic the fuel standards in place in other member states, including Germany and France, which serve as an effective barrier to outright competition from imports outside the European Union. Essentially, there are two separate tariff codes – one for denatured or industrial and the other for food grade or agricultural. The latter is significantly higher at 19.2 cents per litre versus 10.2 cents per litre. Many member states have done this with the explicit aim of protecting domestic production such as in the Germans' bio-fuel quota Act and the French legislative equivalent.

The European Commission would have to be notified under Directive 98/34/EC as this type of initiative would be deemed to be a technical regulation. From a national perspective, the only substantial problem with the course of action is that the United Kingdom has not adopted such a measure. Given that we import 60% of our road transport fuel from the United Kingdom, such a measure could have the potential to substantially increase costs to Irish consumers, theoretically, as they would have to be supplied with a different blend of bioethanol.

The fact this standard is in widespread use across Europe means much of European production capacity is already geared towards producing the same. The bioethanol in use in Ireland probably already meets this standard. As such the Minister, Deputy Eamon Ryan, is considering this with a view to making an amendment in the Dáil. We are in the process of notifying the Commission about this change, as required. This is known as a technical regulation. Once notification is lodged, we can then make the amendment in the Dáil. We would prefer to do it on Report Stage in the Seanad but because of the timing factors involved, it will arise on Second Stage in the Dáil. It is key to ensure the consumer will not be adversely affected by cost increases stemming from any such measure in this area. The concept of a deferred introduction is one the Minister is considering in that regard. I do not propose, therefore, to accept the amendments on the grounds that it would be pre-emptive to do so. I do not propose to accept the amendment to the Title on the grounds that it already deals with this issue in so far it is possible or appropriate to do so.

I thank Senators for their contributions. The spirit and content of their amendments will be approximated to the Bill when it reaches Second Stage in the Dáil.