John Gormley
Ceist:48 Mr. Gormley asked the Minister for Agriculture and Food the way in which she proposes to promote the biofuel sector within farming here. [24553/04]
Amharc ar fhreagraWednesday, 13 October 2004
Ceisteanna (48)
Freagraí scríofa
My Department introduced an energy crops scheme in March 2004 in accordance with the provisions of Council Regulation (EC) No 1782/2003. Under this scheme, aid of €45 per hectare is granted for areas sown under energy crops and used for the production of products considered biofuels and electric and thermal energy produced from biomass. The aid is granted in respect of areas where production is covered by a contract between the farmer and a processor, except in the case of processing undertaken by the farmer on the holding. Agricultural raw materials, with the exception of sugar beet, may be grown under the energy crops scheme provided that the crops are intended primarily for use in the production of energy products derived from biofuels or from biomass.
From 1 January 2005, farmers may claim the energy crop payment in addition to their entitlement under the single farm payment. Following the decoupling of direct payments from production, individual farmers will now have considerable flexibility to decide what products they produce and in what quantity. I would encourage them to consider the production of energy crops as one of their options. There is a further incentive for them in article 50 of the Finance Act 2004, which provides for relief from excise duty on biofuel that is essential to a pilot project undertaken in the state, designed either to produce biofuel or to test the technical viability of biofuels for use as a motor fuel.