Brendan Griffin (Kerry South, Fine Gael)
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Question 80: To ask the Minister for Finance if he will reverse the Government levy on bio-fuels; and if he will make a statement on the matter. [6574/11]

Michael Noonan (Limerick City, Fine Gael)
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It is understood that the Deputy is referring to the Biofuels (Mineral Oil Tax) Relief scheme that ended on 31 December 2010. Consequently, with effect from 1 January 2011, biofuels are subject to full mineral oil tax rates; however, unlike conventional fuels, biofuels are exempt from the carbon charge. The promotion of biofuel is primarily a matter for my colleague, the Minister for Communications, Energy and Natural Resources.

The National Biofuel Obligation, which is operated by the National Oil Reserves Agency (NORA), is now the Government's means of supporting the use of biofuel in the future. The National Biofuel Obligation requires suppliers of road transport fuels to ensure that 4% of their volumes sold on the Irish market is biofuel; it will underpin delivery of the national biofuel target and will take full account of EU biofuels policy, including the sustainability criteria.

Experience in Ireland and elsewhere has shown that short term fiscal measures cannot provide sufficient certainty to producers, and that only an obligation type system can ensure that Ireland seizes the opportunity to take advantage of biofuel, and that the considerable opportunities for the indigenous production of biofuel are exploited.