Madam, - I note with interest your Editorial of August 10th on concerns over oil supplies. A combination of factors, including increased consumption and concerns over security and cost of supply, has triggered alarm. Ireland's dependence on oil and the fears that oil markets could enter a "super spike" that could push prices as high as $105 a barrel, as forecast by Goldman Sachs last April, could see Ireland's small, open economy powerless to protect itself.
I believe the Government must look seriously at the biofuel industry. While the recent announcement of eight targeted pilot projects is welcome, the allocation of 16 million litres of biofuel production does not go far enough. First of all, we need to drop the word "pilot". The biofuel sector in many European countries is up and running with excise relief as standard.
Here in Ireland the micro-conditions for the fledgling industry (sites, feed stocks, farm and local support and the employment pool) are good but the macro-conditions (fuel-tax remission, accelerated capital allowances) are not. If this Government is serious about a sustainable energy supply, excise duty must be lifted from the biofuel industry.
The farming community is ready and willing to grow crops for fuel and heating; consumers want lower fuel costs and the environment must be protected from increasing greenhouse gas emissions. So what is holding up the development of this sector? Does the Government fear the loss of excise revenue? Studies in the US and Germany have showed that the removal of excise duty pays for itself several times over in terms of increased economic activity, rural regeneration and local jobs.
In this troubled world of ours, a sustainable fuel supply which is good for the consumer, good for farmers and good for the environment, and which is an integral part of sustaining our economy, is a winner. A few simple Government actions could ensure that Ireland becomes a giant of the renewable energy sector. - Yours, etc,
Cllr MARY WHITE, Deputy leader, Green Party, Killedmond, Co Carlow.