Seanad debates

Tuesday, 9 March 2010

Energy (Biofuel Obligation and Miscellaneous Provisions) Bill 2010: Committee Stage (Resumed).

 

1:00 am

Photo of Jim WalshJim Walsh (Fianna Fail)

I welcome the Minister. As he is probably aware, we had a very good debate here last Thursday on this legislation. We have all been well informed by the industry, which has taken a keen interest in the legislation as it is of tremendous importance to it.

With regard to the points raised by Senator O'Toole, I listened carefully to what was said here last week by both Members and the Minister of State. I do not agree with the implied criticism of the Minister of State with regard to points 1 and 2 of the e-mail on ethanol. He was fairly honest and straightforward in that regard. However, point 3 needs clarification. The e-mail stated that with regard to notifying the EU Commission of the change in technical regulation, under directive 98/34/EC, this should be a formality. It went on to state the EU Commission was very familiar with the German scheme, along with similar schemes implemented in many other member states over a considerable period of time. We need clarification from the Minister on that. I understood after debating the issue last week that it would take approximately three months to go through the process of recognising the change in technical regulation and that this was a factor that might delay the Bill. I understood it was for that reason the suggestion was made by the Minister of State that the amendment would take place in the Dáil.

I fully subscribe to, and have heard the Minister emphasise on occasion, the need for a focus on job creation. All legislation should now be employment-proofed across every Department. That is the challenge facing us at least for the next decade. The Minister, in other legislation he has introduced and initiatives he has taken, has been positive in making such a contribution and creating a climate for the creation of jobs in the short to medium term. I support the change in the definition of bioethanol to provide for an alcohol content of at least 99% by volume. This would at least encourage the emergence of indigenous industry and production, which would be to our benefit. It is important that this be implemented. Based on what I heard on Miriam O'Callaghan's programme on Saturday, there could be a lot riding on the outcome, apart from the actual jobs, before the next presidential election.

Belview Port, the site of the proposed bioethanol plant, is close to my own home town, although not as close as it is to Senator John Paul Phelan who, I am sure, would correct me if I said it was. I am within 20 km of it. Much closer to me, in fact, is Green Biofuels Ireland Limited, which is the only up-and-running bio-fuels project. Others have received licences but I do not think they are anywhere near production or have even commenced construction of their facilities. Perhaps I am wrong; I may be corrected on that. What is special about Green Biofuels Ireland - which would appeal to any supporter of sustainable practices - is the extent to which it reuses and recycles. More than 80% of the company's raw materials, which are cooking oil and tallow, are sourced in Ireland. Thus, it is taking waste products and turning them into bio-fuels, which is to be commended. It is producing 34 million litres of bioethanol. If I remember correctly from the previous day, we were saying that 4% of all our fuel use, which is the amount required under the bio-fuel obligation, would amount to somewhere around 220 million litres. The company has plans, assuming the climate and the legislative and commercial environment are amenable, to double its capacity in the not-too-distant future. This should be encouraged.

The company has a real difficulty with this amendment and the delay in the passage of the Bill. Its consultants have been in touch with Senators O'Reilly, Norris and O'Toole and, it is to be hoped, Senator McCarthy, because I provided it with the names of all four Senators in order that it could bring them up to speed. The company's difficulty is that its excise relief is to run out on 1 July and should the bio-fuels obligation not be in place by then, it will find itself unable to trade, which will have drastic consequences. I ask that we consider this complication together with the Minister. Perhaps, as has been suggested by Senator O'Reilly, an amendment could be made in the Seanad to enable the Minister in due course, having obtained EU approval, to introduce a statutory instrument. I ask the Minister to indicate whether this course of action would be suitable and whether any such statutory instrument in the future will incorporate this amendment with regard to the alcohol content of the bioethanol product.

We have had a good debate, which is testimony to the scrutiny that Bills receive in the House. I hope the Minister will be able to respond positively to the points being made.

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