Seanad debates

Tuesday, 23 March 2010

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

 

4:00 am

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)

With regard to Senator O'Toole's point about amendment No. 1, we have to be careful we do not fall foul of international trade and other obligations. This is one of my concerns. While we are agreed on the need to increase security of supply and we want to support indigenous production, we have to be careful about how we set that out and not fall foul of international agreements.

With regard to Senator Bradford's point about consultation with the Department of Agriculture, Fisheries and Food being included along with consultation with the Minister for the Environment, Heritage and Local Government, the National Standards Authority of Ireland and the Revenue Commissioners, this seems to make sense. I propose to table an amendment on Committee Stage in the Dáil because it makes sense to have the Department of Agriculture, Fisheries and Food involved and for that Department to have an input into the policy as it is developed.

Senator Walsh made a point regarding the buy-out price. He asked how certain we can be that this will work. One of the benefits of using secondary legislation in this regard is that it allows flexibility. My Department will monitor this over the next number of years to see how it is working. Because the price is set by order - similar to the secondary order - there is flexibility. The effect can be measured as to whether it is the desired effect. This is taken into account along with the other issues. This is a complex market in terms of technology, international trade arrangements and so on. The European Union code of practice is something we will need to assess to see how it works for setting standards and regulating the flows of fuels. I am confident we have the right mechanisms here, particularly with regard to the secondary legislation. This will allow the Minister to make orders to continue to adapt with regard to international regulations and as the home market develops. We need to be careful because some fuel crops may have the potential to interfere with food markets. It is therefore better to have a certain flexibility. We must meet our European Union target of 10% of transport fuels coming from sustainable sources. We have to keep an eye on developments such as electric vehicles and hydrogen fuel cells so we can combine the developments in those areas as we increase the bio-fuels obligation.

The debate in the Seanad has been very useful in this regard as it has allowed us to consider and discuss different options. Government amendments Nos. 7, 8 and 10 provide the necessary flexibility to help support indigenous production. I propose they be accepted. I welcome Senator O'Toole's indication he may be willing to withdraw amendments Nos. 1 to 5, inclusive, and amendment No. 11, given the commitment that we are on the same track but just using different legislative means to achieve our objective.

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