BIOFUEL PRODUCTION IN THE UK AND THE PROPOSED TRADE AGREEMENT WITH MERCOSUR

Early day motion 1373, tabled 22 June 2004 by Helen Clark (Labour). Signed by 34 members.

That this House welcomes the Government's acceptance of an amendment to the Energy Bill [Lords] to establish a road transport fuel obligation; notes however, that the European Commission has made an offer to the Mercosur countries, including Brazil, for duty-free access into the EU for one million tonnes of ethanol per annum; further notes that current total EU ethanol consumption in road fuel is only about 400,000 tonnes per annum and that none of this is yet in the UK; further notes that if this agreement goes through this will deter investment in a nascent domestic industry in the UK and deny the UK the benefits of such an industry; and urges the Government to press the European Commission to negotiate a deal that would offer a concession to Mercosur for a small proportion of the EU's annual road fuel bioethanol consumption, to be introduced no earlier than 2007, thereby allowing a domestic industry to develop in the UK.

Signatures by party: Labour 22, Liberal Democrat 6, Conservative 3, Plaid Cymru 2, Labour/Co-operative 1.