Madam, - What a joy it was to read Tom Hennigan's Letter from Sao Paulo in your edition of April 13th. It is a great achievement for a developing country such as Brazil, facing the challenges it does, to be the first to produce a commercial aircraft fuelled on alcohol.
It was also interesting to read about the well-developed biofuel industry which has evolved in that country since the 1980s and that Brazil is now planning to become the main global player in biofuels industry. We in Ireland have much to learn from Brazil's approach.
Kyoto forces us to reduce greenhouse gas emissions. In Ireland, the transport sector accounts for 26 per cent of these emissions. We could cut our rate of pollution significantly if we followed the Brazilian example and developed an indigenous biofuels industry. An EU directive requires us to provide 2 per cent of all fuels from renewable sources by 2005 and up to 5.75 per cent by 2010. Last year's Finance Act provided a mechanism to stimulate activity by exempting biofuels from excise duty; however, this measure was capped at 10,000 tonnes, or .06 per cent. How are we expected to reach our targets with such restrictions? This amount is not commercially viable and will not encourage people into this industry, which must be allowed to develop freely.
Presumably Government policy is to comply with EU directives. We have the potential to develop a major new industry in Ireland. Our climate is ideally suited to grow biomass.
If we are to develop this industry we must not impose impediments to stifle its growth. Tax initiatives have been used in this country to great effect in industries such as horse breeding and building.
We should be more like Brazil and embrace the opportunities that our Kyoto EU obligations provide for us. Parsimony never built a great nation. - Yours, etc.,
FIONA O'MALLEY TD, Dáil Éireann, Dublin 2.