Dr. Stjohn O'Connor:

I am minded of the Deputy's concerns in previous parliamentary questions in this regard.

While it might seem it has taken a long time, a huge degree of complexity goes into a pay-as-you-save, PAYS, scheme. If we take a step back, PAYS as a concept is fine, but PAYS has never been implemented anywhere in the world to meet the parameters of the concept. The project team is examining and testing those parameters and fundamental constructs. They are going into the minutiae of how things stack up because PAYS works on the basis that this measure being installed will save one a certain amount of money, which one then uses to pay back the cost of installing that measure in the first instance. Given the situation with our banks, it is a very complicated proposition. It is a new way of lending, but it is lending and that is the challenge.

Deputy Catherine Murphy is correct; not everybody would be in a position to benefit from the programme. With my other hat on, those in energy poverty are definitely not suitable candidates for a PAYS scheme. They are excluded from the first round of consideration but there is a programme in place that targets them. The better energy warmer homes programme has retrofitted 100,000 low-income houses. That is how we will proceed in respect of that group.

The project team developing PAYS is working away, is very well advanced and has produced a number of documents. It is undertaking a very different way of engaging with stakeholders for that project team. All the documents are automatically sent to all stakeholders as soon as they are done, so the project team for a number of different documents receives them at the same time as everybody else and that is done very deliberately because the concept of PAYS will work only if everybody is pulling in the same direction. While we have a project board that represents everybody in the industry and consumer association, it is still important we get the wider community on board, otherwise PAYS will never be a success. The formal consultation process begins in July and then the project team aims to report back to the Minister at the end of August or the start of September. The Minister will digest that and bring it to the Government soon afterwards.

Deputy Catherine Murphy mentioned the risk of not meeting the target. The energy efficiency target is an indicative target. It is the only target that does not have a statutory obligation underpinning it, so there is no cost to Ireland. However the energy efficiency directive introduced at the end of 2012 directs the Commission to review progress in 2014 and come back with options if it thinks member states will not hit that 20% target. Under that directive all the member states have had to report back to the Commission in April to say what the national targets are, and that will inform that piece of work. Ireland reiterated that we are committed to that 20% target and a 33% target for the public sector.