John Gormley (Dublin South East, Green Party)
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Question 33: To ask the Minister for Agriculture and Food her plans to improve incentives for farmers to grow bio-energy crops; and if she will make a statement on the matter. [40585/06]

Pat Breen (Clare, Fine Gael)
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Question 67: To ask the Minister for Agriculture and Food if she will increase the bio-energy payment from €45 per hectare; and if she will make a statement on the matter. [40473/06]

Tommy Broughan (Dublin North East, Labour)
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Question 103: To ask the Minister for Agriculture and Food the measures taken by her Department to support farmers to produce crops for biofuel production; and if she will make a statement on the matter. [40561/06]

Michael D Higgins (Galway West, Labour)
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Question 107: To ask the Minister for Agriculture and Food her view of EU law providing for the possibility of national aid for topping up the energy crops premium; and if she will make a statement on the matter. [40553/06]

Ivor Callely (Dublin North Central, Fianna Fail)
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Question 202: To ask the Minister for Agriculture and Food the incentives in place for farmers to explore and apply the area of bio-energy; and if she will make a statement on the matter. [40708/06]

Bernard Durkan (Kildare North, Fine Gael)
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Question 227: To ask the Minister for Agriculture and Food if her attention has been drawn to the urgent necessity to provide attractive incentives for the growing of bio-fuel crops; and if she will make a statement on the matter. [40854/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 33, 67, 103, 107, 202 and 227 together.

I am aware of the interest at farm level in growing energy crops as a feedstock for bioenergy purposes. Under CAP reform, farmers now have the freedom to focus more clearly on exploiting new farming opportunities, including agricultural production for non-food use. The development of this sector is an opportunity for farmers to diversify and seek new investment opportunities beyond traditional farming outlets.

The key issue for farmers considering energy crops is the expectation of a good economic return. Farmers will only produce energy crops if returns are greater than those offered by more traditional uses.

On the demand side, I believe the announcement last week by the Minister for Communications, Marine and Natural Resources Noel Dempsey that 16 biofuel projects are to be granted excise relief under the €200m excise relief programme, will help drive additional demand for production of energy crops. When fully operational in 2008, it will deliver some 163 million litres of biofuels per year and should result in Ireland achieving 2% market penetration of biofuels. I am confident that farmers will respond positively to demand for feedstock arising from these new projects.

On the supply side, support to farmers for growing energy crops may only be provided in accordance with EU Regulations. Under the Energy Crops Scheme, aid of €45 per hectare is available for energy crops provided they are intended primarily 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 and I subsequently raised the matter with the Agriculture Commissioner. The EU Commission has published a Report on implementation of the scheme and has made a Proposal, which would allow member states pay national aid up to 50% of the costs associated with establishing permanent crops. The Proposal, which I welcome, is currently being discussed in Brussels. I should point out, however, that this proposal does not provide for topping up of the energy crop premium.

My Department has received a number of proposals to introduce establishment grants to support the growing of miscanthus and willow for bioenergy and these are currently being considered.

I am also working closely with Ministerial colleagues to promote the development of an indigenous biofuels sector in Ireland. The Government recently established a Ministerial Taskforce on Bioenergy to prepare a road map to develop Ireland's bio-energy resources to 2020. The Taskforce will prepare a comprehensive National Bioenergy Action Plan by the end of this year.