Seanad debates

Tuesday, 23 March 2010

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

 

4:00 am

Photo of Joe O'ReillyJoe O'Reilly (Fine Gael)

I note the last comments of Senator O'Toole and second the amendment. The purposes of my Committee Stage amendments and the Report Stage amendments of Senators O'Toole and Norris, which I support, have been to support indigenous production and processing of raw materials to create bio-fuels. At a time when the economic climate of our country dictates that jobs and farm incomes be a priority, we should orientate any legislation in that direction. Amendment No.1, in the names of Senators O'Toole and Norris, is good and proposes that we support, promote and incentivise bio-fuel production. We have a very specific proposal to which Senator Bradford will wish to refer. It was referred to by Senators Phelan and Walsh on Second and Committee Stages. In Belview port in Kilkenny there is a proposal to develop a 100,000 tonne bioethanol processing facility with the potential to create 1,000 jobs. Anything to support, promote and incentivise that and any other bio-fuel processing in the country is laudable and should be written into the Bill. It should be a stated objective of the legislation.

Our economic climate makes such provisions mandatory. It would be reprehensively negligent not to propose such views, as in excess of 437,000 people are unemployed. Jobs must be at a premium. The raison d'être for anything we do here should be job creation. Many people are displaced from construction. There is enormous potential, not just in processing but in the growing of energy crops in this country. Teagasc has stated there are 100,000 hectares of land available for the growing of energy crops without damaging food supply. It is very important that we support this. However, the incentives for farmers are not adequate. They need incentivisation to grow energy crops. Farm incomes are on the floor, farmgate prices are at an all-time low and there are real difficulties as regards declining numbers and incomes which, on average, are about €13,000 per annum. It is scary; therefore, anything that would assist farmers should be encouraged. For that reason, providing incentives to encourage the growth of energy crops would be a worthy objective of the legislation and is what the amendment is seeking to achieve.

The second amendment suggests there should be a level playing field with producers in Brazil and that Ireland should be brought into line with other countries such as Belgium, Slovakia, Poland, Hungary etc. What is important is that we incentivise domestic production while eliminating imports because the objective of the legislation, to reduce the carbon footprint, will not be achieved by long-haul transportation of biofuels into the country. For that reason, it is very important that we attempt to achieve it by incentivising domestic production. As I said, the jobs question arises in this regard. Security of supply is vital and would be served by the amendment in seeking to create a level playing pitch with producers in Brazil. It would be an important step to support the achievement of a €100 million bioethanol processing business in Ireland. Therefore, the amendment is worthy on the grounds of ensuring security of supply, in reducing the carbon footprint, supporting indigenous processing and job creation initiatives, as well as the growth of indigenous energy crop production.

The other amendments are in a similar vein in that they all seek to achieve these objectives. However, the big objective has to be job creation. At this stage the emphasis must be placed on it. We will not overcome our domestic economic ills if people are not put back to work, generating income and economic activity and giving the economy a renewed impetus. It is not just an abstract economic issue that is at stake, but rather the well-being of the people against the reality of unemployment and not having fulfilling work to do. This is important from every perspective in building a society and an economy and preparing for the future. Therefore, there has to be enormous emphasis on job creation. That is the objective of the worthy amendments tabled and espoused well by Senators O'Toole and Norris. It is also the objective of the amendments I tabled on Committee Stage, having outlined my intentions on Second Stage.

Like Senator O'Toole, I welcome the Minister's amendments to the extent that there is movement towards our position. Truthfully, we would prefer if there was a specific commitment in the primary legislation to achieve the standard set in our amendments. As Senator O'Toole said, however, we do not accept all of the arguments presented by the Minister of State, Deputy Conor Lenihan, to the effect that this is what is happening in a majority of European states. We would prefer if it was stated specifically in the legislation, but nonetheless there is the potential for the Minister to make a ministerial order, which could be a step in the right direction, as it is an acceptance, in principle, if not in practice, of our position.

I am heartened that the position I elucidated on Second Stage, developed on Committee Stage and I am continuing to pursue on Report Stage is implicitly accepted by the Minister. That is welcome. While I very much welcome this fact, I would prefer if it were explicitly accepted. Nonetheless, it is accepted and I recognise that it is progress achieved by the Seanad. I urge the Minister, when he comes to make the requisite regulations at a later stage, to insert the necessary standards to create a level playing pitch, as we have suggested. I appeal to him to do so.

It is the prerogative of Senator O'Toole, as a sagacious and long-time Member of the House, to decide whether he should seek a division on his amendments. I defer to his judgement, as someone who is experienced in these matters. While it is good that an advance has been achieved, I hope the Minister will indicate that he intends to accommodate our twin objectives in the regulations, namely, a reduction of the carbon footprint and creating jobs. If we believe the regulations are likely to achieve these goals, we shall be happy to support the legislation on Report Stage.

We are here to create jobs, boost native production and, ultimately, create a better lifestyle and higher incomes for the people, while achieving the objective of reducing the carbon footprint. On that basis, I support the amendments. I support the Minister's amendment with the reservation that it would be better if the objectives were explicitly provided for in primary legislation. Nonetheless, I hope they will be achieved in the regulations to be made by the Minister. Native growers and processors must be given confidence to proceed, with a belief they are competing on a level playing pitch with their counterparts in other countries.

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