Dáil Éireann Debate, Tuesday - 7 February 2006
264 Mr. Eamon Ryan asked the Minister for Finance if it is possible within the provision of support mechanisms for biofuels to restrict duty exemption or other support mechanisms to fuels that are sourced either exclusively within the island of Ireland or within the European Union. [3988/06]
Amharc ar fhreagraI presume the Deputy's question refers primarily to the new large-scale biofuels scheme announced in the budget and provided for in the recently published Finance Bill. Further details on how this scheme will operate will be produced by the Department of Communications, Marine and Natural Resources in the coming months, once the necessary EU State aid approval has been obtained.
However, it is clear that it would not be possible for any scheme providing excise duty exemption for biofuels to make such exemption conditional upon the biofuel concerned being produced only in Ireland. This would be in contravention of Ireland's duty under EU competition law, not to distort competition in the Common Market. Inclusion of any such condition in the new scheme would lead to refusal of our application for the aforementioned EU State aid approval.
Notwithstanding this, one of the aims of the new scheme is to create, in so far as is possible, the development of biomass-feedstock production in Ireland to support the development of a sustainable domestic biofuels industry and we must try and reflect this in the new scheme.
