Plan to cut tax on cars using energy-saving fuel

Energy:Vehicles using energy-efficient fuels will be charged a lower vehicle registration tax (VRT) under FG proposals to lower emissions and increase the use of bio-fuels.

The party's environment spokesman Fergus O'Dowd said Irish agricultural land offered huge potential to develop alternative energy crops for bio-diesel and bio-ethanol.

He also said communities close to "alternative energy infrastructure" such as wind farms would receive compensation through improved sporting and cultural links, "above par transport links and even cash payments".

Fine Gael is proposing that all petrol include a 5 per cent bio-ethanol mix and all diesels a 2 per cent bio-diesel mix.

"We cannot allow a situation to evolve, as has in the United States, where more and more people drive gas-guzzling, road-hogging SUVs, squeezing out smaller, smarter and more efficient vehicles in the process."

Mr O'Dowd's plan to "kick-start" the bio-fuel industry includes the removal of all excise duty on all renewable energy crops, set-up grants for producers, and a public competition to establish and operate a number of bio-fuel processing plants.

The Louth TD warned that Ireland faced a bill of €400 million if it did not meet Kyoto Agreement commitments.

Ireland's emissions were currently 25 per cent above 1990 levels, and "without any action it is estimated that our emissions would rise by 37 per cent, almost three times the permissible level".

Incentives also include grants of €500 for householders who convert home-heating to renewable energy technology.

The party's natural resources spokesman Bernard Durkan said only 4 per cent of Ireland's electricity was generated from renewable sources. Fine Gael's target was to generate 33 per cent of electricity needs from renewable energy sources by 2025.

Chairman of the Irish Wind Energy Association Tim Cowhig told delegates that Ireland was spending €20 million a day on energy, and Ireland's dependency on imported fuels had risen from 65 per cent to almost 100 per cent since 1990.