HC Deb 06 March 2003 vol 400 cc947-9
5. Mr. David Heath (Somerton and Frome)

What measures she is taking to encourage sustainable markets for non-food crops. [101114]

The Minister for Rural Affairs and Urban Quality of Life (Alun Michael)

We have provided £70 million to develop markets for biomass and a further £29 million to support the planting of energy crops. To encourage the market for transport biofuels, the Chancellor introduced a cut in the duty rate for biodiesel last July.

Mr. Heath

Given that the Curry report in January 2002 stated that England needs a long-term strategy for creating and exploiting opportunities in non-food crops and that the area should be a high-priority research and technology transfer effort have not the Government's activities been extremely disappointing? What happened to the non-food crops centre and the stimulus for not just the planting of nonfood crops but plans for utilising them? Does the Minister really believe that the fiscal incentives so far for biofuel have been successful?

Alun Michael

I indicated the financial incentives that have been made available. We are establishing a new centre of excellence to bring together industry, academia and Government to create the conditions for successful technology generation and transfer with the aim of creating a market, to which the sustainable farming and food strategy clearly makes reference.

Brian White (Milton Keynes, North-East)

Is my right hon. Friend aware that companies such as BP have said that they could use biofuels in their existing refineries but are experiencing problems in dealing with agencies such as Customs and Excise? In developing the new strategy, will my right hon. Friend ensure that relevant agencies are taken on board?

Alun Michael

I was not aware of that, but I shall be happy to look into it. It has been suggested that the use of biomass is one of the main contributors to the renewables generation mix, the aim being to meet the target of 20 per cent. of electricity production through renewables by 2020. It is important for that reason.

Mrs. Gillian Shephard (South-West Norfolk)

The current round of World Trade Organisation negotiations will mean a collapse in the price of beet sugar produced in this country. What plans have the Government for the development of alternative uses for sugar beet, which will effectively become a non-food crop? Have they a co-ordinated approach to such plans, and if so which Department and which Minister are in charge?

Alun Michael

Some work has been done by the Central Science Laboratory, and, as I have said, an announcement has been made of the intention to cut the duty rate for bio-ethanol. Both those measures will, I think, be helpful.

Dr. Alan Whitehead (Southampton, Test)

Is my right hon. Friend aware that biofuels can be added immediately to either petrol or diesel, causing a reduction of some 65 per cent. in carbon dioxide emissions? Does he accept that the development of a biofuel non-food crop market could have an immediate impact on climate change, and will he discuss with his colleagues in the Treasury, the Department of Trade and Industry and the Department for Transport how that market might best be introduced?

Alun Michael

I think my hon. Friend's essential point is that we are talking about the creation of a market. It is difficult for the creation of a market to be instant, but I assure my hon. Friend that my colleagues in the DTI and the Treasury share our wish for it to take place.

Sir Patrick Cormack (South Staffordshire)

Will the Minister now answer the question asked by my right hon. Friend the Member for South-West Norfolk (Mrs. Shephard)?

Alun Michael

The question asked by the hon. Member for Somerton and Frome (Mr. Heath) clearly involves different responsibilities. The Chancellor has responsibilities for duty, and my colleagues in the Department for Transport and the DTI have their own responsibilities. We at DEFRA are positively promoting the development of the market, which is why scientific and other research is being carried out. I would expect the hon. Member for South Staffordshire (Sir Patrick Cormack) to be more interested in those facts than in an over-simplistic question about who is in charge.

Mr. Peter Pike (Burnley)

Given European Union enlargement and the changes we need to make in the common agricultural policy, is it not crucial to make biofuels successful? Is it not vital for us to have more discussions with the National Farmers Union and others to ensure that the changes succeed and the agriculture industry can survive?

Alun Michael

Indeed. The work being done is supported by organisations such as the NFU, and the EU biofuels directive is expected to set indicative targets that will help the development of the market to which a number of Members have referred.