Bernard Durkan (Kildare North, Fine Gael)
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Question 591: To ask the Minister for Finance if he will increase the amount of pure plant oil eligible for excise relief; if he has received indications of the effect that a major increase in the product could be achieved if the excise relief was extended; and if he will make a statement on the matter. [2941/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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While the promotion of biofuels, including pure plant oil, is primarily a matter for my colleague, the Minister for Communications, Marine and Natural Resources, I am pleased to inform the Deputy that in Finance Act 2006 I provided for significant tax measures to promote biofuels in Ireland.

This scheme, which received the necessary EU State Aid approval, commenced in November 2006 and will: provide for excise relief on up to 163 million litres of biofuels per annum; cost over €200m over 5 years; when fully operational, result in CO2 savings of over 250,000 tonnes per annum; meet a target of 2% transport fuel market penetration by biofuels by 2008; help reduce our dependency on conventional fossil fuels, and stimulate activity in the agricultural sector.

The level of excise relief available — and the breakdown of the relief between each of the alternate fuels — is that which had been proposed by the Minister for Communications, Marine and Natural Resources in advance of Budget 2006. It is regarded as a level which is sufficient to match Ireland's output potential in relation to renewable energy crops for motor fuels over the period of the scheme. Consequently, any extension in the amount of relief which formed part of that Budget announcement is not envisaged at this stage. The Deputy will, of course, be aware that there are non-fiscal measures that can be used to promote Biofuels, including pure plant oil. These are, however, outside my remit but are under consideration by the Minister for Communications, Marine and Natural Resources.