Published: Wednesday, 9th June, 2010 5:00pm

O'Reilly welcomes new Bio-fuel Bill

Senator Joe O'Reilly.

During the final stage of the Bio-fuel Obligation Bill in the Seanad last week, Senator Joe O'Reilly highlighted the need for the protection of domestic production of bio-fuel crops. He sees problems with amendments five and six, and the possibility that Irish producers might not be able to meet a rise in demand could have a negative effect on domestic producers.

"Those amendments state each obligated party has to ensure a specified amount of its road transport fuel is made up of bio-fuel," said the senator. "This amount will, according to amendment six, not exceed 4.166% of a fossil fuel element in the final blend. The problem with this amendment is an issue might arise with domestic producers struggling to meet market demand.

"That is a real concern. If the figure of 4% was to be decreased or even increased at any stage, the impact it would have on domestic production would be severe. It has to be ensured, therefore, that domestic producers will be able to cater for any changes, in particular increases. To date, 70% of the bio-fuel supplied has been imported. As I said in the debates on second and committee stages, we have to ensure we move from imported to domestically produced bio-fuels or raw materials. Therefore, Ireland's capacity to engage in domestic production has to be assessed thoroughly."

Senator O'Reilly welcomed the Bio-fuel Bill as it will prove to be a financial lifeline to so many cash strapped farmers, but also mentioned the need for Irish farmers to be encouraged to enter this new and developing sector.

"We must not make it disadvantageous for Irish farmers to enter the bio-fuel market. The production of bio-fuel crops is a positive step and we have to strive to ensure it will remain a positive experience for them. We want to encourage domestic production and get the farming community on board. We want to see the bio-fuels used in Ireland produced here. That is the reason I believe strongly that the capacity of domestic producers to meet market increases has to be assessed and conditions put in place to make it as beneficial as possible for farmers to produce bio-fuels to be used here."