Farming in brief: Biofuels backing sought by the IFA
Published 22/06/2010 | 05:00
The Biofuels Obligation Scheme (BOS) has failed to support indigenous industry and will lead to significant job losses, the IFA has claimed.
JJ Kavanagh, chairman of its alternative land use project team, said the scheme would result in the closure of many biofuel production plants that were previously supported by the Mineral Oil Tax Relief (MOTR) scheme.
Mr Kavanagh said companies that had invested heavily in the industry through the Government incentive now found themselves in a precarious situation.
"Many in the indigenous biofuels industry are convinced that the obligated parties will choose to import the required transport fuel mix and pay the penalty as it will be cheaper and easier to administer," he said.
He added this would lead to limited market demand for the indigenous biofuels tradable certificates and would adversely affect the price of the tradable certificates.
"We cannot see how the new scheme can create a degree of certainty in the biofuels market, nor will it encourage investment in sustainable biofuel production," he said.
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