Biofuels
Oral Answers to Questions — Environment, Food and Rural Affairs
10:30 am

Graham Allen (Nottingham North, Labour)

What proportion of crops grown in the UK over the next five years she estimates will be for the manufacture of biofuels; and if she will make a statement.

Elliot Morley (Minister of State (Climate Change and Environment), Department for Environment, Food and Rural Affairs; Scunthorpe, Labour)

In November 2005, the Government announced their intention to introduce a renewable transport fuels obligation. It will require 5 per cent. of transport fuel to be from renewable sources by 2010. At this stage, it is not possible to say what proportion of the obligation will be met from UK sources.

Graham Allen (Nottingham North, Labour)

As we heard during the exchange about palm oil, none of the materials that we think are sustainable is without its own environmental consequences. We all want biofuels, but will the Minister make it clear that we will not denude our rainforests to create them, thus creating even more problems? When he examines the certification scheme on an international basis, will he ensure that it includes all the necessary safeguards, including safeguards for the producer—often an ordinary peasant farmer—who, on occasion, is the unwitting victim of our environmental policy?

Elliot Morley (Minister of State (Climate Change and Environment), Department for Environment, Food and Rural Affairs; Scunthorpe, Labour)

I know that my hon. Friend takes a close interest in the issue and I agree with him entirely. There is a social dimension.

Ethanol imports do not necessarily originate in palm oil crops; they may come from wheat crops. Whatever the source of potential imports, however, Government policy must not add to unsustainable pressure in other countries. For that reason we are determined to establish the certification scheme. It is now well advanced, and I will bear in mind my hon. Friend's sensible remarks.

Philip Hollobone (Kettering, Conservative)

Given the importance of encouraging farmers in this country to grow biofuels as part of the battle against climate change, will the Minister consider relaxing EU laws on, for instance, set-aside so that biofuels can be grown on land that would otherwise be unproductive?

Elliot Morley (Minister of State (Climate Change and Environment), Department for Environment, Food and Rural Affairs; Scunthorpe, Labour)

I am very pleased to tell the hon. Gentleman that that facility already exists—farmers can grow crops on set-aside land if it is for industrial use.

Rob Marris (Wolverhampton South West, Labour)

May I caution my hon. Friend on the matter of safeguards? Some people are driving around this country using, for example, used chip fat, as a biofuel. Such materials do not get the 20 per cent. fuel discount, but they are incredibly polluting. We do not really know what is going into these vehicles—it could be just any old rubbish out of a chip pan. What steps are the Government taking, or proposing to take, to safeguard us from the worse air pollution that will result from the use of unauthorised, uncertified biofuels?

Elliot Morley (Minister of State (Climate Change and Environment), Department for Environment, Food and Rural Affairs; Scunthorpe, Labour)

We very much welcome the use of used cooking oils—which are sustainable and recyclable—as fuel, but my hon. Friend is right to point to the importance of taking into account quality control and the carbon dioxide balance in the processing of biofuels. We have addressed this issue by making capital allowances available for the processing of biofuels, but they are payable only if the processes meet the established standards.

Stephen Crabb (Preseli Pembrokeshire, Conservative)

My question is the complete opposite of that asked by Rob Marris, in that I urge the Minister to speak to the Financial Secretary to the Treasury about revising his interpretation of this rule. Numerous excellent biofuel microbusinesses, such as the Veg Oil Motoring company in my constituency, have researched the environmental benefits of their product. However, they are being put in jeopardy by the Financial Secretary's decision not to include them in the lower duty band.

Elliot Morley (Minister of State (Climate Change and Environment), Department for Environment, Food and Rural Affairs; Scunthorpe, Labour)

As we heard from my hon. Friend Rob Marris, quality control is an issue. The whole House will agree that we want to support this industry, which is sustainable and deserves encouragement, but that we also want good standards. In applying capital allowances, which is a form of financial encouragement, it is not unreasonable to ask that the company concerned maintains minimum decent standards.

Brian Jenkins (Tamworth, Labour)

I do not want to pour water on my hon. Friend's troubled oils, but he must surely recognise that the technology that we are talking about supporting is not in fact sustainable. Will he ensure that we do not spend excessive sums on supporting it, and that we look instead for new technologies to drive our vehicles of the future?

Elliot Morley (Minister of State (Climate Change and Environment), Department for Environment, Food and Rural Affairs; Scunthorpe, Labour)

We need a range of technologies and an energy mix, and such a mix is a feature of the current energy review, which is being led by my hon. Friend the Minister for Energy. However, the fact remains that used cooking oils exist, and processing them into fuel is a very good way of dealing with them. It is desirable to replace a proportion of the fossil fuels in our fuel mix with biofuels; indeed, we should encourage that.