Ciarán Lynch (Cork South Central, Labour)
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Question 124: To ask the Minister for Finance the amount of revenue which has been raised from the sale of bioethanol fuels; the way the revenues raised compare with the targets set in the programme for Government; and if he will make a statement on the matter. [29238/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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It is assumed that the Deputy is referring to the Biofuels Mineral Oil Tax Relief Scheme provided for in the Finance Act 2006. Under that Scheme, biofuel produced under projects approved by the Department of Communications, Energy and Natural Resources are exempt from mineral oil tax (excise duty). This serves to reduce the additional costs associated with the production of biofuels and consequently allows them to compete with conventional fossil fuels. This fiscal incentive was designed to help kickstart the domestic biofuels industry. Long-term general excise reliefs are not anticipated. I am advised by the Revenue Commissions that any deliveries of bioethanol have taken place in the context of the above Scheme and have not, therefore, been liable to mineral oil tax.

Under the Biofuels Mineral Oil Tax Relief Scheme, while the take-up has been slower than had been anticipated especially during the early part of the Scheme, over 50 million litres of bioethanol has been delivered to date, resulting in over €23 million in mineral oil tax being relieved.

The Programme for Government does not as such contain specific targets in relation to the sale of bioethanol or indeed biofuels generally. However, the Government did signal its intention to move to a Biofuels Obligation Scheme. In that regard, I understand my colleague, the Minister for Communications, Energy and Natural Resources will be bringing proposals to Government concerning the legislation required in order that the Biofuels Obligation Scheme can be introduced in 2010. The introduction of the obligation will require all fuel suppliers to ensure that biofuels represent a certain percentage of their annual fuel sales. The obligation is designed to provide a long-term market based framework for the development of a biofuels sector and delivery of biofuels targets to 2020.