Dáil Éireann Debate, Wednesday - 27 September 2006
1193 Mr. Connolly asked the Minister for Agriculture and Food the plans she has to introduce start-up grants for farmers entering the biofuel crops market; and if she will make a statement on the matter. [29330/06]
Amharc ar fhreagraCurrently, support for the growing of energy crops is provided by way of the Energy Crops Scheme, which was introduced under the reform of the CAP. Under this scheme, energy crops may qualify for aid of €45 per hectare provided they are intended primarily for use in the production of biofuels and electric and thermal energy produced from biomass. In addition to this scheme, set aside land can be used for a variety of non-food uses including the growing of crops for energy purpose and will therefore qualify to activate set-aside entitlements under the Single Payment Scheme. The EU has agreed that sugar beet will be eligible for aid under the scheme and may also be grown as an energy crop on set aside land. At the February Council of Agriculture Ministers meeting I called for a review of the energy crop premium. The EU Commission has just published a Report on implementation of the scheme since 2005 and on how the efficiency of the scheme could be further improved. My Department is currently studying the Report.
I am confident that the recently announced Mineral Oil Tax Relief Scheme valued at €205m will help drive additional demand for the production of energy crops. When fully operational in 2008, it will deliver some 163 million litres of biofuels per year and should result in Ireland achieving 2% market penetration of biofuels.
There has been renewed interest among some producers in growing miscanthus and willow as a feedstock for bioenergy purposes. My Department has received a number of proposals for the introduction of establishment grants and these are currently being considered. The introduction of establishment grants will require EUapproval.
I am also working closely with Ministerial colleagues to promote the development of an indigenous biofuels sector in Ireland. The Government have recently established a Ministerial Taskforce on Bioenergy to prepare a firm road map to develop Ireland's bioenergy resources to 2020. This will ensure a cohesive approach to the development of bioenergy across Government Departments, state agencies and relevant stakeholders. The Taskforce will prepare a comprehensive national Bio-energy Action Plan by the end of this year.
