Oireachtas Joint and Select Committees

Tuesday, 8 March 2022

Select Committee on Communications, Climate Action and Environment

Estimates for Public Services 2022
Vote 29 - Environment, Climate and Communications (Supplementary)

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party) | Oireachtas source

Regarding the inflationary effects of energy price rises, particularly the rising cost of gas, which is driving up the cost of electricity, it was clear in most of the second half of last year that we were going to have to do something. It relates to one of the measures we had in mind in discussions with the Department of Public Expenditure and Reform, which was to use some of the carryover we had, which I think was some €57 million, as a result of an underspend last year because a lot of retrofitting could not take place last year due to Covid. We decided to use some of that carryover - the €128 million that has been transferred in the way described by the Deputy - to recognise that we would probably need it for some fuel price support measure.

The issue of the balance, social protection and energy poverty proofing must be taken into account in the wider context than the national retrofit plan, which was launched last November, and the very specific details announced two weeks ago. I think it was a €267 million package. The design of that was very much done with addressing fuel poverty in mind. I think something like €118 million of that €267 million is in the warmer homes 100% grant targeted at those on the lowest incomes. There is also an allocation of €85 million within the Department of Housing, Local Government and Heritage targeting social housing retrofitting. If we take those two sums, of the some one third of €1 billion between the various measures, two thirds of it is targeted at energy poverty measures. It was appropriate that the Government made the decision, particularly given that we had to act fast and did not want a further measure that was more universal in nature because even with all the planning as regards social welfare increases and the targeting of roughly €200 million at social housing, there are people who fall through the gaps. The benefit of a €200 credit is that it gets to everyone quickly. I believe that was the correct approach. I think there was a call for that mix.

In respect of whether we are reducing ambition, if at the end of this year, we find that the demand for and level of public interest in the retrofitting scheme is such that we are coming to the end of our budget and are unable to meet all demand, I am very confident I will be able to go back to the Minister for Public Expenditure and Reform, particularly in these circumstances when everything has to be focused towards energy efficiency and burning less Russian oil, coal and gas, and get a further Supplementary Estimate if we find demand outstrips supply. Our biggest problem in recent years has been the opposite so I am confident. This €267 million programme is huge. There has been massive expansion. If that is not sufficient, I am confident we will be able to look for further funding because this is a significant priority for Government - not just for climate reasons but for energy security and fuel poverty reasons.

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