Will the Taoiseach explain why the Government, and he as Taoiseach, is refusing to grasp the opportunity to save and create jobs in Carlow and other places around the country affected by the closure of the Carlow sugar factory? Why is he refusing to realise the potential of the biofuels sector? Does he understand why so many people such as farmers and economists are quite baffled at the Government's failure to seize the opportunity? This is an opportunity which is available to turn around a decline in agriculture as well as helping the lives of thousands of people affected by the Greencore decision. It could help reduce dependence on fossil fuels. The country spends €100 million a week on fuel imports. It could reduce greenhouse gas emissions and improve the balance of payments. The country is currently paying approximately €35 million a year on carbon credits.

Is the Taoiseach aware of the EU directives since May 2003 which require Ireland to have a minimum of 2% of transport fuel sourced from biofuel by this year and 5.75% by 2010? Is he aware that other member states have worked and achieved considerable progress? Finland has granted a 100% exemption from CO2 tax to biofuel as has the Czech Republic on its use as motor fuel. Austria also operates a tax exemption for biofuels as has the UK with a 20% exemption per litre. Germany offers a full exemption on biofuels from 1 January, and there are also such exemptions in France and Italy. Why is Ireland dragging its feet on this matter?

In the words of the Government backbencher, Deputy Fiona O'Malley, Ireland is currently stuck at zero. This is an appalling indictment of the failure to realise a potential. We are not even asking for what was originally proposed but simply that best practice be followed. I note that today the Minister for Agriculture and Food is meeting the IFA president to discuss the Carlow sugar factory. Will the Taoiseach indicate that the Government has a plan for the biofuel sector? The Finance Bill makes no provisions in this regard. Will the Taoiseach at least say the Finance Bill will be amended to allow Ireland catch up on other countries which are streets ahead of us in this area?

It was provided for in last year's Finance Bill.

Nothing happened.

It has not been implemented.

Allow the Taoiseach without interruption.

The provisions are in last year's Finance Act so it is not necessary to include them in this year's Bill. For some time the Government has been in discussions with the European Union on the State-aid issue and the methods which we can use to input resources. The Minister informs me that those discussions are ongoing and it is hoped they will be completed. The Minister of State at the Department of Agriculture and Food, Deputy Browne and the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, are preparing a package which is under discussion with the Department of Finance. The question whether this plan can be implemented is based on the State-aid issue. If this issue is resolved positively, the Ministers have the plan ready to present to the Department of Finance. The Government is in a position to move on this issue but we must first await the resolution of the question of the ability of the State to put in resources.

I am baffled why the Taoiseach regards Ireland as being so much in the doghouse with the European Commission. Finland, the Czech Republic, Austria, the UK, Germany, France and Italy can all move ahead whereas Ireland is waiting patiently. There is more energy and interest from this Government in the stallion tax than in the livelihoods of people who are affected by an economic downturn in agriculture. I ask the Taoiseach to give this matter his full attention. There is catching up to be done. There is no quota for biofuel. The Carlow sugar factory is processing 660,000 tonnes per annum. Those farmers are looking at a very bleak future while the Taoiseach talks about waiting in the wings for the European Commission to do something about it while other countries have managed to garner huge——

There is a precedent.

The Deputy cannot have it both ways.

It seems the Minister for Defence is suddenly some kind of expert.

Allow Deputy Sargent without interruption.

I suggest he talks to his Taoiseach if he is interested in the procedure because other countries have followed the procedure and have managed to win out and achieve considerable employment potential.

The other countries got permission.

People are asking why this Government is so much more loyal to the oil sheikhs of OPEC than it is to the farmers struggling in this country when the potential of the oil fields of Ireland — which is effectively what is under discussion — are not being realised. In the interests of farmers, factory workers, motorists and every taxpayer, will the Taoiseach give this matter the priority it has not received and develop the sector, as has been done by other law-abiding countries which have followed procedure? There needs to be movement from the Government on this issue. It needs to stop thinking about the stallion tax and start thinking about exemption on biofuels.

The old tax shelters.

As the Deputy is familiar with the situation in the other countries he will be aware they have gone through precisely the same procedure.

It did not take them a whole year.

Has the Deputy any evidence of that?

I remind Deputies it is Leaders' Questions.

They are all looking for evidence now.

It is a question of approval for State aid. It is an EU State-aid issue. This process must be followed before the Government can invest resources. The other countries have followed this process and Ireland is in the process of doing it. Both the Department of Agriculture and Food and the Department of Communications, Marine and Natural Resources have a plan. The power to implement it is contained in the Finance Act and it is a question of obtaining State-aid approval. Other countries have been given approval but the Government cannot proceed without that approval. Otherwise I would be answering questions in this House on the reasons Ireland was before the European Court of Justice for its failure to follow procedure, which is an issue that is raised regularly. The Minister for Communications, Marine and Natural Resources has already stated that the Government is committed to the implementation of the plan in this area.

The stallion tax will be before that.