Dáil Éireann Debate, Thursday - 12 March 2009
17 Deputy Joe Carey asked the Minister for Communications, Energy and Natural Resources if he is satisfied with the results achieved by his excise relief scheme on bio-fuels and in particular its effect on the increased importation of bio-fuels; and if he will make a statement on the matter. [10406/09]
View answer19 Deputy Jimmy Deenihan asked the Minister for Communications, Energy and Natural Resources if he is satisfied that all companies given the mineral oil tax relief scheme are living up to their obligations in relation to setting up production plants here; and if he will make a statement on the matter. [10426/09]
View answer33 Deputy Michael D. Higgins asked the Minister for Communications, Energy and Natural Resources his position regarding bio-fuels; his views on whether imported bio-fuels will be required to meet the targets set by the EU; if he has concerns over the traceability of these imported bio-fuels; the percentage of imported bio-fuels; and if he will make a statement on the matter. [10522/09]
View answerI propose to take Questions Nos. 17, 19 and 33 together.
As I have already advised the House, the Biofuels Mineral Oil Tax Relief Schemes were designed as interim measures to increase the level of bio-fuels in the fuel mix, in advance of the introduction of a national bio-fuels obligation in 2010. Market penetration of bio-fuels in Ireland has grown from virtually nil in 2004 although there is still a long way to go.
In the case of some of the developments in receipt of excise relief under the Scheme, imports were acknowledged as a necessary part of their plans pending the establishment of facilities and supply chains. It is relevant that the European bio-fuels industry has experienced difficulties with a prolonged period of price volatility, culminating in the recent fall in the price of mineral diesel. The price of feedstocks for bio-fuels production has conversely risen. These two factors have led to severe competitive challenges for the European and Irish bio-fuels industry. The availability of cheap US subsidised biodiesel, known as "B99" has placed considerable commercial pressure on the European and Irish industry. For these reasons, progress on constructing the facilities envisaged under the Mineral Oil Tax Relief Scheme has been slow despite some early successes. Together with other member states, Ireland has been pressing the EU Commission to introduce measures to counter the negative impact of the US export subsidy. A Commission response is expected in the coming days. Short term EU action and the introduction of the National Biofuels Obligations next year should provide the certainty needed for investors in Irish biofuels production.
The Biofuels Obligation will incorporate the EU sustainability criteria negotiated last year. This will create the necessary framework to ensure that bio-fuels in Ireland are sustainably sourced. The development of second and third generation bio-fuel technologies is also key to ensuring long-term sustainability. We will continue to work with the Commission and other member states to ensure that the sustainability criteria are transparent, effective and rigorously enforced.
