State urged to remove renewable energy barriers
Irish Creamery Milk Suppliers Association (ICMSA) rural development chairman Tommy Cooke, who made the call, said Ireland has one of the most poorly developed renewable energy sectors in the EU.
"The announcement in Budget 2006 in relation to biofuel excise relief has not gone far enough to help move us from this embarrassing position," he said.
Mr Cooke said progressive EU member states such as Germany, Belgium, Austria and Spain operate on the basis that there is no consumption tax, nor any limit on the volume for biofuels.
However, he added, the Irish Government insist on going against the grain, using excuses like the cost of an open-ended system to the exchequer. When it announced the excise exemption in the budget, it stated that it will cost the exchequer €205 million annually.
"The Government seem to be missing the point that by exempting biofuels from excise, economic activity is encouraged and employment is created which will, in turn, create other revenue sources for the exchequer," he said.
Mr Cooke said the ICMSA believes the time is right for the excise to be removed from all Irish produced biofuels. This is possible under the EU biofuels directive. Member states just have to notify the commission of their intent.
"With the uncertainty that surrounds the sugar industry, farmers have never been in greater need of a new enterprise that would guarantee their future in farming and provide a sustainable level of income in the coming years," he said.
However, Mr Cooke said it would not be farmers alone that would benefit. Thousands more jobs could be created in rural areas in the processing and distribution sector.
