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Question Time
SCOTTISH EXECUTIVE
General Questions
Biofuels
To ask the Scottish
Executive how it is encouraging the use of biofuels in light of the
level of oil prices. (S2O-7749)
Mr
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD):
To ask the Scottish Executive how it is encouraging the use of biofuels
in light of the level of oil prices. (S2O-7749)
The Deputy
Minister for Enterprise and Lifelong Learning (Allan Wilson):
The Scottish Executive supported the construction of Scotland's first
large-scale biodiesel production plant through a £1.2 million regional
selective assistance grant. The plant is now fully operational. The
United Kingdom Government currently applies a 20p per litre fuel duty
incentive for biofuels. The Executive is working closely with the UK
Government on consideration of potential additional measures to promote
biofuels.
Mr Stone:
Given that transport is recognised as a major source of carbon
emissions, does the minister agree that encouraging farmers and industry
to increase the production of biofuel alternatives would greatly benefit
the environment as well as help agriculture in the uncertain times that
it faces? Will the new measures to which he referred include a reduction
in fuel duty for such fuels? Will he at least consider such a reduction
and discuss it with colleagues in Westminster?
Allan Wilson:
As I said, we are in discussion with UK Government colleagues. I agree
that promoting biofuels would produce environmental benefit by reducing
the use of fuels that generate carbon emissions. We are considering more
generally the impact of fuel duty on climate change. As the member may
know, fuel duty rates are lower today than they were in 1999.
Mr Andrew Welsh
(Angus) (SNP):
Does the minister agree that Scottish agricultural crops such as soft
wheat are ideally suited for the production of biofuels and that it is
therefore crucial that the biofuel projects that are encouraged are as
informed as possible? Given that the plant belonging to Argent Energy
Ltd has received £1.2 million of Scottish Executive money and could be a
model for future biofuel projects, will he encourage the company to
co-operate in sharing non-confidential information and experience?
Allan Wilson:
I agree with the member's basic premise, but I am unaware of any
difficulty over the sharing of information. Biofuels have not been
mainstreamed in the UK as they have been in other parts of the globe.
Given that production is carried out on a small scale in the UK, higher
production levels would decrease storage, distribution and other costs
and make biofuels more competitive with conventional fuels. In that
respect, I agree fundamentally with the point that the member has made.
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