Brendan Howlin (Wexford, Labour)
Link to this: Individually | In context

Question 101: To ask the Minister for Transport his plans to introduce a grant scheme for people having their cars modified to enable them to use low CO2 emission biofuels; and if he will make a statement on the matter. [24273/07]

Noel Dempsey (Meath West, Fianna Fail)
Link to this: Individually | In context

The Minerals Oil Tax Relief (MOTR) Scheme II, announced in November 2006, aims to place 163 million litres of biofuels on the market per annum at a cost of €200 million over the period 2006-2010. When the scheme is fully operational, it is expected that it will contribute 2.2% of total transport fuel consumption. In addition, obligatory fuel blending of 5% will be introduced by 2009 which will help to achieve the indicative target of 5.75% set out in the Biofuels Directive 2003/30/EC. The remainder will be achieved through higher biofuel blends and use of pure plant oil (PPO) in captive fleets maintained by private and public transport operators. My Department has also provided support for transport operators to convert their vehicles to run on 100% PPO as part of a scheme operated by the German-Irish Chamber of Industry and Commerce in 2007.

Despite the success of this pilot scheme and the interest expressed in it by operators, I have no immediate intention to extend it or provide any other additional grants for vehicle modification, until the proposed Sustainable Travel and Transport Action Plan emerges in 2008. Notwithstanding this, there is currently a provision for a 50% VRT relief on flexi-fuelled vehicles (FFV), which are capable of operating on 85% blend, for 2006 and 2007. Furthermore, it is expected that changes to the current VRT and motor tax system will reward purchasers and owners of low-carbon vehicles.