Written answers

Wednesday, 22 November 2006

9:00 pm

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 209: To ask the Minister for Finance the amount and maximum percentage of excise relief available to biofuel processors and suppliers; and if he will make a statement on the matter. [39299/06]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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Section 50 of the Finance Act 2004 provided for the introduction of a limited scheme of relief from excise tax for biofuels. Under the Scheme, full 100% excise relief was granted to successful applicants to the scheme from August 2005 for a total of 16 million litres of fuel at a cost of €3m per annum over 2 years.

The number of applications made for relief from excise duty under the pilot scheme clearly indicated the strong interest in developing a biofuels industry in Ireland and consequently I made a provision in the Finance Act 2006 for a significantly expanded 5 year scheme of Mineral Oil Tax relief. The scope of the relief extends to projects which are not just of a pilot nature. The scheme will provide for excise relief on up to 163 million litres of biofuels per annum and cost over €200m over 5 years.

The Scheme was advertised by the Department of Communications, Marine and Natural Resources in late July 2006. Over 100 applications were received and the assessment panel has forwarded its recommendations to my colleague, the Minister for Communications, Marine and Natural Resources. It is expected that approval will be sought from me, shortly. The intention, as with the pilot scheme, will be that participants in the Scheme will receive full 100% excise relief. Full relief is regarded as necessary to make biofuels competitive from a price perspective.

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