Eamon Ryan (Dublin South, Green Party)
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Question 109: To ask the Minister for Communications, Marine and Natural Resources the measures he plans to take to promote the development of Irish biodiesel fuels. [3203/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Deputy may be aware that section 98(a) of the Finance Act 1999, as inserted by section 50 of the Finance Act 2004, provides for the introduction of a scheme for excise tax relief for biofuels. The purpose of the scheme is to allow qualified and conditional relief from excise of biofuel used in approved pilot projects for either the production of biofuel or the testing of the technical viability of biofuel for use as a motor fuel.

The European Commission has confirmed that the scheme would represent a state aid and consequently its approval is required. My Department, together with the Department of Communication, Marine and Natural Resources, has submitted a formal application for Commission approval for a scheme which includes pure plant oil, biodiesel and bioethanol. The EU energy tax directive (2003) envisages such tax relief and the Commission has approved schemes for excise relief of biofuel in other EU member states. Assuming approval is granted, the necessary commencement order will then be signed.