Martin Ferris (Kerry North, Sinn Fein)
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Question 470: To ask the Minister for Agriculture and Food her views on whether the energy crops grant needs to be increased in order to encourage a greater uptake in view of the small numbers of people applying for the grant; and if she will make a statement on the matter. [31868/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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Support to farmers for growing energy crops may only be provided in accordance with EU Regulations. Under the EU Energy Crops scheme, aid of €45 per hectare is available for energy crops intended for use in the production of biofuels and electric and thermal energy produced from biomass. In addition to this scheme, set aside land can be used for a variety of non-food uses including the growing of crops for energy purpose and will therefore qualify to activate set-aside entitlements under the Single Payment Scheme. The EU has agreed that sugar beet will be eligible for aid under the scheme and may also be grown as an energy crop on set aside land. At the February Council of Agriculture Ministers meeting I called for a review of the energy crop premium as it was not proving effective in Ireland. The EU Commission has just published a Report on implementation of the scheme and my Department is currently studying the Report.

A number of policy initiatives are now underway to increase market penetration of biofuels in Ireland. These initiatives will help drive additional demand for the production of energy crops. The recently announced Mineral Oil Tax Relief Scheme valued at €205m which, when fully operational in 2008, will deliver some 163 million litres of biofuels per year and should result in Ireland achieving 2% market penetration of biofuels.

In the recently published Green Paper on a Sustainable Energy Future for Ireland, the Government made a firm commitment to promote an indigenous biofuel sector in Ireland. In this regard, I am working closely with Ministerial colleagues, as part of the Ministerial Taskforce on Bioenergy to prepare a road map to develop Ireland's bioenergy resources to 2020. This will ensure a cohesive approach to the development of this sector across Government Departments, state agencies and relevant stakeholders. The Taskforce will prepare a comprehensive national Bio-energy Action Plan by the end of this year.