If she will make a statement on the biofuel industry.

The UK is on course to achieve our target of 0.3 per cent. use of biofuels by the end of 2005. A renewable transport fuels obligation will be introduced to require 5 per cent. of UK fuel to come from a renewable source by 2010. Biofuel processing plants are being established in the UK, which will include feedstocks sourced from the UK.

I thank my hon. Friend for that reply and add my congratulations to the Secretary of State for all the efforts that she has made at the United Nations conference on climate change. I also give great credit and praise to the Department for reducing carbon emissions.

Will my hon. Friend consider the Australian model of bringing the biofuel industry, oil companies, petrol retailers, car manufacturers and consumer groups together to give greater focus and attention to meeting our targets in 2010? That represents a great opportunity, and I hope that he will consider setting up such a body.

I very much welcome my hon. Friend's interest in biofuels, and the fact that Teesside appears to be developing as one of the centres of biofuel production. I have looked at the Australian model. It is worth saying that the prime reason for setting up the Australian committee was that there were problems with consumer confidence in biofuels, particularly ethanol. That is not the case in the UK, where the mix of 5 per cent. is accepted by all car companies. However, it is important that we look at ways in which we can encourage the uptake and development of a biofuel industry in the UK, and I will give my hon. Friend's suggestion serious thought.

Biofuels are the great hope for British arable farming. Farmers in my constituency are keen to grow biofuels but tell me that the economics are not yet right. What encouragement can the Minister give them that the Government will address this issue properly?

An obligation of 5 per cent. on the oil companies is a considerable driver in relation to the demand for biofuels and the opportunities for supplying them from the domestic market. I should point out to the hon. Gentleman that farmers are allowed to grow biofuel crops on set-aside land, for which they already receive a payment. They get a payment for the set-aside and a payment for the crop, and there is also the encouragement of a 20p per litre discount.

Will my hon. Friend have urgent talks with Treasury colleagues in order to restore the tax concessions on biodiesel that is made from vegetable oil collected from restaurants and canteens, which represents an even better use of the world's resources than biodiesel directly derived from plant sources?

There has been no removal of tax concessions for biodiesels from crops or recycled cooking oil. The problem is whether the biofuel fulfils the quality standard to qualify for the discount.

With biofuels responsible for only 0.25 per cent. of road fuel sold, how is the Minister's target for 2010 of 5 per cent. of road fuels sold progressing?

The current target is 0.3 per cent., which we met in 2005. The target of 5 per cent. will be ramped up from 2008 onwards. I have no doubt that we can meet that target. We need a stepped approach to avoid simply sucking in large quantities of imports. It is inevitable that imports will account for some of the market, but the Government want a viable industry in this country involving local growers and processors.