Róisín Shortall (Dublin North West, Labour)
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Question 230: To ask the Minister for Finance the grants or financial incentives available from his Department for adapting diesel cars in order that they can use biofuels; and if he will make a statement on the matter. [8660/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I wish to advise the Deputy that there are no grants or financial incentives available for adapting diesel cars in order that they can use biofuels.

As the Deputy will be aware, I introduced a provision in the Finance Act of 2006 which enables the Revenue Commissioners to grant a 50% vehicle registration tax (VRT) relief on the registration of flexible fuel vehicles (FFVs) in the State. The purpose of this scheme is to encourage the development of new technology that is used in the manufacture of vehicles that use engines and fuel systems that are capable of running on E85-bioethanol (a combination of ethanol and petrol) which benefits the environment by producing lower pollutant emissions than conventional vehicles fuelled exclusively by petrol or diesel.

This measure complements the significant excise relief scheme for Biofuels also provided for in Finance Act 2006.

The Scheme will:

provide for excise relief on up to 163 million litres of biofuels per annum;

cost over €200m over 5 years;

result in CO2 savings of over 250,000 tonnes per annum;

contribute towards meeting a target of 5.75% transport fuel market penetration by biofuels by 2009;

help reduce our dependency on conventional fossil fuels, and

stimulate activity in the agricultural sector.