Kathleen Lynch (Cork North Central, Labour)
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Question 113: To ask the Minister for Finance the tax incentive measures he plans to introduce to ensure that Ireland meets the EU target of 5.75% biofuels by 2010; and if he will make a statement on the matter. [3880/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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While the promotion of biofuel 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 is that which had been proposed by the Minister for Communications, Marine and Natural Resources in advance of Budget 2006. Any extension in the amount of relief which formed part of that Budget announcement is not envisaged at this stage. These fiscal incentives were designed to kickstart the domestic biofuels industry and the evidence suggests that this is happening. The Deputy might wish to note that there are additional non-fiscal measures that can be used to promote Biofuels and reach the targets referred to in the Question. These, however, are outside my remit but are under active consideration by the Minister for Communications, Marine and Natural Resources.