Joe O'Reilly (Fine Gael)

I refer to amendments Nos. 5 and 6 which state each obligated party must ensure a specified amount of its road transport fuel is made up of bio-fuel. This amount will be calculated in litres and, according to amendment No. 6, will not exceed 4.166% of a fossil fuel element in the final blend. The problem with this amendment is an issue might arise with domestic producers struggling to meet market demand. That is a real concern. If the figure of 4% was to be decreased or even increased at any stage, the impact it would have on domestic production would be severe, to say the least. It must be ensured, therefore, that domestic producers will be ble to cater for any changes, in particular increases. To date, 70% of the bio-fuel supplied has been imported. As I said in the debates on Second and Committee Stages, we must ensure we move from imported to domestically produced bio-fuels or raw materials. Therefore, Ireland's capacity to engage in domestic production must be assessed thoroughly. We must not make it disadvantageous for Irish farmers to enter the bio-fuel production market. The production of bio-fuel crops will be a lifeline for many of our cash-strapped farmers. It is a positive step in terms of the benefits for our farmers and we must strive to ensure it will remain a positive experience for them. We want to encourage domestic production and get the farming community on board. We want to see the bio-fuels used in Ireland produced here. That is the reason I believe strongly that the capacity of domestic producers to meet market increases must be assessed and conditions put in place to make it as beneficial as possible for farmers to produce bio-fuels to be used here. It is important to note in the case of tariff rates that some level of regard needs to be given to what other countries are doing, in particular European countries such as Spain, Germany and Portugal, and beyond, such as Brazil.

It would be prudent and good practice to consider what other member states are doing before a concrete decision is made on the percentage of bio-fuels coming from domestic production in this country. This is necessary for the protection of the very people who will be producing the bio-fuel crops, namely farmers. If we are truly committed to encouraging the domestic production of bio-fuels in Ireland, we must ensure Irish farmers do not feel that they are taking an unnecessary risk before a concrete decision is made on the percentage of bio-fuel coming from domestic production in this country. This is necessary for the protection of farmers who will produce the bio-fuel crops and to whom a high level of protection needs to be given.