Trevor Sargent
Ceist:172 Mr. Sargent asked the Minister for Finance his views on the proposal to amend Directive 92/81/EEC to reduce the rate of excise duty on biofuels being developed here. [5401/03]
Written Answers - EU Directives.
The EU proposal to amend Directive 92/81/EEC to reduce the rate of excise duty on biofuels is now being considered as part of the proposal for an energy taxation directive. This proposal is at an advanced stage of discussion in the Council of Economic and Finance Ministers. One of the provisions in the proposal would allow member states to grant relief or exemptions from excise duty on biofuels. Such relief or exemption would be discretionary on the part of member states.
The subject of biofuel production falls within the remit of the Department of Transport. The Department of Transport has informed my Department that Sustainable Energy Ireland has commissioned a paper from Teagasc on the current position regarding liquid biofuels in Ireland. The paper, due shortly, will lay out strategic options for the sector. The Department of Transport will review the paper in the context of implementing the forthcoming EU directive on the promotion of the use of biofuels. It intends to develop a strategy that takes account of the different interests involved. Pending the outcome of the paper referred to above, and consideration of same by the relevant Department, it would be premature to examine the question of excise duty relief for biofuels.