Leo Varadkar (Dublin West, Fine Gael)
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Question 111: To ask the Minister for Finance the incentives from his Department and his Department's agencies for the production of bio-fuels; if he will review these in view of the current world food crisis; and if he will make a statement on the matter. [17742/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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While the promotion of biofuel is primarily a matter for my colleague, the Minister for Communications, Energy and Natural Resources, the Deputy will be aware the Finance Act 2006 provided for significant tax measures to promote biofuels in Ireland. The overall level of excise relief available for biofuels 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 coming years. These fiscal incentives were designed to kickstart the domestic biofuels industry. Long-term general excise reliefs are not anticipated.

In addition, as a complementary measure, the Finance Act 2008 provided for the VAT rate applicable on the supply of miscanthus rhizomes, seeds, bulbs, roots and similar goods used for the agricultural production of bio-fuels to be reduced from 21% to 13.5%.

The Deputy will be aware that under proposals drafted by the European Commission, Ireland has been assigned ambitious targets for reducing emissions from sectors not covered by the Emission Trading Scheme. In this regard, transport is one of the main areas where there will be a need to reduce emissions. Given the lack of viable alternatives to fossil fuels in the transport fuels market, it is appropriate that there are some incentives in place in the short term that facilitate biofuels becoming more available in the market place.

I am aware of the need to strike a land use balance between energy and food crops. Some biofuel sources are to an extent in direct competition with food production, however, I understand second generation biofuel and energy sources are less so. The assistance we are providing is towards the production of second generation as well as first generation biofuels sources. The European Commission has indicated its awareness of general sustainability issues in relation to biofuels and has signalled its intention to introduce incentives and support systems to avoid such issues.

Specifically, it intends to encourage the development of 'second generation' biofuels. To this end, the Commission's renewable energy legislative proposals, contain targets for biofuels market penetration, subject to the introduction of sustainability criteria and the coming on stream of second-generation biofuels.

The Commission also notes that European demand for biomass, especially biofuels, could contribute to improving trade relations with the European Union's trading partners, in particular developing countries, many of which have the potential to produce and export biomass and biofuels at competitive prices. It will be important to strike a careful balance to ensure the optimum outcome in terms of reducing Green House Gas emissions in transport, providing real opportunities for local producers and developing countries, and at the same time minimising any risk in terms of food production.

I understand the Minister for Communications, Energy and Natural Resources will shortly be launching a public consultation on the proposed biofuels obligation as set out in the Programme for Government. In that context, Ireland's biofuels obligation will take account of EU sustainability initiatives in relation to biofuels. We should of course not forget that an increase in the prices for agricultural products also increases incomes in the agricultural industry in Ireland.

Bernard Durkan (Kildare North, Fine Gael)
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Question 112: To ask the Minister for Finance the correct level of tax free allowances or tax credits in the case of a person (details supplied) in County Kildare; and if he will make a statement on the matter. [17809/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that without the PPS number of the person in question they are unable to furnish the information requested, as the taxpayer is not registered on their records at the address supplied and all searches have been unsuccessful. However, if the taxpayer wishes to contact the Kildare PAYE Customer Service, by telephoning 1890 44 44 25 or by e-mailing kildarecustomerservice@revenue.ie, they would be happy to deal with any queries she may have.