For some background, biofuellers in the UK have been working to get 
the government to drop it's high tax on biodiesel of 48.82p per litre 
- $2.63 per gallon.

Keith Addison
Journey to Forever
Handmade Projects
Tokyo
http://journeytoforever.org/



Oral answer 16 November 2000

Biofuels

10. Dr. Phyllis Starkey (Milton Keynes, South-West): If he will make a
statement on research funded by his Department
into biofuels. [137143]

The Minister of State, Ministry of Agriculture, Fisheries and Food (Ms Joyce
Quin): The Ministry spends around
£0.6 million per annum on energy crops research, concentrating on the
development of higher- yielding crops and of improved
crop protection which avoids the need for the use of pesticides.
Furthermore,

16 Nov 2000 : Column 1063

under our rural development programme, £30 million will be available to
support the planting of energy crops and to set up
producer groups.

Dr. Starkey: I welcome the Government's commitment to funding research on
energy crops and biofuels. Does my hon.
Friend agree that such crops have the potential to provide more
environmentally friendly alternatives to fossil fuel, and that they
can be a very useful diversification opportunity for farmers? Will she
outline any measures that she is proposing to build on the
pre-Budget report to look at ways of improving the economic competitiveness
of biofuels?

Ms Quin: My hon. Friend makes some important points. This is an exciting
area for agriculture and for the general economy.
MAFF is very keen to play its part in the examination of new alternative
energy sources. A number of Departments are
interested. A fund exists in the Department of Trade and Industry for
alternative energy sources, there is the new opportunities
fund announced by my right hon. Friend the Prime Minister, and there are
also the resources announced in the pre-Budget
report.

I recently launched the second stage of the IENICA project in York, which is
also looking at the development of these new
opportunities across the European Union as a whole.

Mr. A. J. Beith (Berwick-upon-Tweed): Does the Minister agree that the most
valuable innovation would be a serious tax
incentive for biodiesel? Is the Ministry giving the Chancellor of the
Exchequer the evidence that he needs to take a step that
would be in the interests of the Government's environmental policy and their
agricultural policy?

Ms Quin: We have had discussions very recently with the Treasury on these
matters. It is obviously important to look at the
economics involved in biofuels, to determine the most viable prospects for
such alternative crops. We are very keen to take the
work forward. There are possibilities, and the new developments happening
all the time alter the previous economic appraisals
of viability. For that reason, it is important for Government Departments,
including MAFF, to look at the issue very closely.

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