Enda Kenny (Mayo, Fine Gael)
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Question 527: To ask the Minister for the Environment, Heritage and Local Government the results of the negotiated agreement on a reduction in the sulphur content of bituminous coal and petcoke and the extension of the ban on the marketing, sale and distribution of solid fuels (details supplied); his views on the findings of the report; the action he proposes to take as a consequence; the programme of such action for 2005; and if he will make a statement on the matter. [3763/05]

Batt O'Keeffe (Cork South Central, Fianna Fail)
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The June 2002 voluntary agreement between my Department and the solid fuel trade group, which represents the principal importers and distributors of solid fuel in Ireland, provided, inter alia, for the delivery of significantly cleaner standards for bituminous coal and petcoke on a phased basis. The agreement also encompassed the extension of the coal ban to four new areas from October 2003 and an increase in market penetration of smokeless fuel in a further four areas. It was agreed that the Department would not seek to designate further coal ban areas during the life of the agreement except where required to ensure adherence to air quality standards. The agreement also provided for an initial review by end 2003 and a final review by end 2004, with the ambition of setting further targets from 2005 onwards.

My Department reviewed the operation of the voluntary agreement with the solid fuel trade group in 2003 but the final review due by the end December 2004 was postponed following the granting of a moratorium on the step down to 2004 sulphur levels in petcoke for the 2004/2005 heating season. This moratorium was requested by the trade group and was granted to help the industry through a difficult interim supply period, triggered by exceptional levels of demand for petcoke tonnages internationally which made the sourcing of lower sulphur fuels problematic for the industry.

It is intended to undertake the final review when the 2004-05 heating season is concluded. At that stage, all parties will be in a better position to assess both the effect of the agreement over three heating seasons and the future market supply situation, and to explore further how to maximise environmental benefits from the solid fuel sector.

The 2003 review and discussions to date with the solid fuel trade group indicate that on balance the agreement is environmentally advantageous. Four additional coal bans are in place and the group's sales figures indicate at least 75% of total sales in Athlone, Carlow, Clonmel and Ennis by 1 October 2004 were of smokeless fuels. The industry has overachieved the required maximum sulphur limit in bituminous coal of 0.7% with a weighted average up to end June 2004 of 0.48%; this was the case also for the same period in 2003. The maximum sulphur limit in petcoke of 2.75% was met for the period to end June 2004 and while the weighted average reduced from 2.69% to 2.55% between end June 2003 and end June 2004, it remains above the required average of 2.3%. Given pre-agreement sulphur levels in petcoke of 4% to 5%, this is still a significant reduction particularly in view of the global market supply issue mentioned above.

The reduced sulphur levels in coal and petcoke, together with reduced petcoke tonnages over the last two heating seasons, are contributing to reduced emissions of sulphur dioxide, SO2, from this sector. EPA emission inventories indicate a reduction of c. 6,500 tonnes of SO2 for the residential-commercial sector as a whole from all fuel sources between 2001 and 2002. Final inventory data for 2003 is not yet available but provisional indications are of a continued downward trend in the sector compared to pre-agreement emissions.