Capital Allowances: Biofuels

Mr. Hoban
To ask the Chancellor of the Exchequer (1) what the process is for obtaining approval for equipment to qualify for the enhanced capital allowances for biofuel equipment; who is responsible for submitting an application for approval; what criteria need to be satisfied for approval to be given; how long it is expected to take for a decision to be made; what remedy is available to those whose applications are unsuccessful; from what date applications may be made; and if he will make a statement;

(2) if he will make a statement on the criteria to be satisfied for equipment to qualify for the enhanced capital allowances for biofuel equipment announced in the Budget.

John Healey
[holding answer 21 May 2007]: In Budget 2007, the Government announced their intention to apply for state aid approval for an EGA scheme to support the most carbon-efficient biofuels plant. This process is ongoing.

Once that approval has been obtained it will be for DEFRA to consider and approve applications for the scheme.