Bernard Durkan (Kildare North, Fine Gael)
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Question 182: To ask the Minister for Finance his proposals to offer incentives to encourage road fuel oil conservation; and if he will make a statement on the matter. [13702/05]

Bernard Durkan (Kildare North, Fine Gael)
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Question 183: To ask the Minister for Finance the financial incentives he has to encourage the use of renewable energy in motor vehicles; and if he will make a statement on the matter. [13703/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I propose to answer Questions Nos. 182 and 183 together.

First, it should be noted that the vehicle registration tax, VRT, structure incentivises the purchase of cars with smaller engines, which generally have lower fuel consumption. As regards specific measures, there is the recent introduction of a pilot scheme for excise relief for biofuels, as provided for by section 50, Finance Act 2004, which is currently being advertised by the Department of Communications, Marine and Natural Resources, and the extension of 50% VRT relief, until end 2006, for hybrid vehicles which have significantly lower fuel consumption and emissions than similar sized petrol cars.

I also provided for an excise differential for sulphur free fuels in the Finance Act 2005, which I expect to commence in July. This measure will have immediate and tangible environmental and health benefits. In addition, there are also a number of fiscal incentives which promote the use of public transport, including the benefit-in-kind exemption on employer provided commuter tickets and various capital allowances for the development of park and ride facilities in the larger urban areas. In respect of further proposals, I am open minded towards fiscal initiatives that will benefit the environment. However, any proposals will be considered in the context of the forthcoming budgetary process.