HC Deb 04 May 1995 vol 259 cc427-8
9. Mr. Soley

To ask the Minister of Agriculture, Fisheries and Food what studies his Department has carried out on crops that can be grown for renewable energy purposes. [20944]

Mr. Jack

The Department is currently funding research on short rotation coppice, miscanthus and bio-diesel.

Mr. Soley

Perhaps the Minister could begin by taking the 50 per cent. tax off bio-diesel, thus getting a good headline on tax, for a change. Even more importantly, will the Ministry try to liaise better with the Department of Trade and Industry on coppicing so that renewable energy sources, which dramatically reduce levels of carbon dioxide and sulphur dioxide, can be produced?

Mr. Jack

As no product called bio-diesel, as such, is commercially available, it would be difficult to take a tax off it. It is typical of the Labour party's approach to invent a tax and then challenge the Government about what they intend to do about it. We are working closely with the DTI on coppicing, and the hon. Gentleman will know that we, with Sweden, are leaders within Europe in that respect. As for the so-called non-fossil fuel obligation—NFFO 3—three projects on short rotational coppice have now been approved. We are pleased about that because if the projects prove viable they will require the use of 9,000 hectares of land to produce the wood.

Sir David Steel

With reference to the earlier question about growing trees on set-aside land, have the Government been following the Swedish experience of growing short-life willow trees and using them to fuel power stations? Have the Government yet reached any conclusion about the viability of that?

Mr. Jack

I hope that I do not do the right hon. Gentleman an injustice, but when I was talking about short rotational coppice, I meant willow trees. As I said, 9,000 hectares of land would need to be farmed if the three projects technically approved under the NFFO 3 tranche of alternative energy sources come to fruition. If the promoters achieve financial viability, the opportunity to unlock the potential of the land using willow will be there.