Eamon Ryan (Dublin South, Green Party)
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The Government is firmly committed to the development of an Irish biofuels market and to the development and deployment of bioenergy generally in Ireland. A range of initiatives is already in place to support the development of the biofuels sector. The Biofuels Mineral Oil Tax Relief Schemes are geared towards those producing biofuel. The second Scheme runs until 2010. We are focusing now on non-fiscal measures which will increase the market penetration of Biofuels. The planned introduction of a Biofuels Obligation by 2009, will require all fuel suppliers to ensure that biofuels represent a certain percentage of their annual fuel sales.

The Bioenergy Action Plan sets out a series of cross-Governmental and inter-agency actions to support the development and deployment of bioenergy in Ireland, including measures aimed at encouraging farmers to grow energy crops. In formulating the plan, it was agreed that while excise relief is an effective short-term measure to stimulate the biofuels market, other policy initiatives, such as a renewables obligation, would be beneficial in the longer-term. The obligation will also give all market players the necessary long-term certainty to make appropriate investment decisions. The move to a biofuels obligation and our ambitious targets, will jointly create opportunities for the farming community to diversify into energy crops. The Programme for Government underlines our commitment to maximise the potential of bioenergy crops.

My colleague, the Minister for Agriculture and Food, who has responsibility for incentivising the production of energy crops, has already put measures in place that are designed to encourage the growing of energy crops.