Trevor Sargent (Dublin North, Green Party)
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Question 461: To ask the Minister for Agriculture and Food her views on whether the removal of excise duty on energy crops would give viability to many farmers who are suffering a dramatic fall-off in farm incomes. [34403/05]

Mary Coughlan (Donegal South West, Fianna Fail)
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The Minister for Communications, Marine and Natural Resources has overall responsibility for energy policy and is primarily responsible for the promotion and development of renewable energy, including biofuels. The introduction of the single farm payment, with direct payments decoupled from production, gives farmers the opportunity to explore alternative land uses such as the growing of energy crops for liquid biofuel purposes. In general, the cultivation of energy crops for biofuels will have to be demand-led and production by farmers will only occur if the economic returns are greater than those offered by traditional crop enterprises. The production of biofuels from energy crops is not economic at current oil price levels and obviously the granting of excise relief on such biofuels would contribute to improving the viability of energy crop enterprises. For example, the scheme announced by the Minister for Communications, Marine and Natural Resources for mineral oil tax relief on pilot biofuel projects has given a boost to the production of oilseed rape for biofuel.