Mr. Mark Griffin:

I am attending the committee to discuss the Department’s 2017 audited accounts, the Comptroller and Auditor General’s chapters on cybersecurity and the national energy efficiency fund, as well as to take questions from the committee across the breadth of the Department’s portfolio.

The Department made significant progress in 2017 and progressed several critical policy measures, including those which aim to deliver two key national strategic outcomes in the national development plan, namely, strengthened rural economies and communities and the transition to a low-carbon and climate-resilient society.

In terms of the appropriation accounts, total gross expenditure under the Vote in 2017 amounted to €503 million, some 7%, or €37 million, below the budgetary allocation of €540 million, including capital carryover. The underspend related primarily to lower than expected expenditure on certain demand-led sustainable energy schemes, the delayed commencement of landfill remediation projects, the national broadband plan, as well as reduced broadcasting expenditure due to lower than forecasted TV licence receipts. In addition, expenditure of €33 million under the environment fund in 2017 supported further progress in the areas of environmental protection, sustainable development and waste management.

The Department has a key policy development and co-ordination role in Ireland’s transition to a low-carbon and climate-resilient economy. Ireland's first statutory national mitigation plan, published in July 2017, sets out a whole-of-Government approach to tackling greenhouse gas emissions in key sectors, including electricity generation, transport, agriculture and the built environment. Ireland’s first national adaptation framework, approved by the Government in December 2017, sets out our strategy for adaptation measures to reduce the vulnerability of the State to the negative effects of climate change, and also to avail of any positive effects which may occur.

Using less energy, and using it more efficiently, is the most cost effective and accessible way to take action on climate change. The Department invested a total of €105 million under its energy programme area in 2017. Of this, capital expenditure of €80 million supported energy efficiency measures in more than 23,500 homes and 491 public, private and commercial buildings, while also supporting around 2,670 jobs across the country. In tandem with this, measures aimed at decarbonising electricity generation and promoting the electrification of heat and transport were progressed. Last year saw the approval of two key support schemes for renewable heat and renewable electricity, respectively, with the latter providing pathways and measures to ensure increased community and citizen participation. Over 900 new electric vehicles were grant-aided in 2017, as we move forward to ensure all new cars and vans sold will be zero emissions, or zero emissions capable by 2030.

The Comptroller and Auditor General has prepared a chapter with the 2017 appropriation accounts dealing with the national energy efficiency fund. The fund served to stimulate the market for large scale energy efficiency projects and leverage private investment in this area, at a time when such investment was not evident. The role of the fund should be seen in the broader context of Exchequer investment in energy efficiency over the past few years. The greater proportion of the €21 million remaining in this fund will now be diverted to stimulate innovative investments by public and private sector entities under the new climate action fund to further support the decarbonisation effort. Last week we had the first announcement of seven schemes to be supported by the fund.

Some €26 million of the Department’s allocation was spent on communications, multimedia developments and the information society in 2017. Within this, expenditure to support digital entrepreneurship and to promote digital inclusion among small businesses and citizens under the national digital strategy amounted to €9.4 million.

During 2017, the Department continued to progress the procurement process under the national broadband plan, while commercial investment in high-speed broadband services continued to expand. Overall, 1.6 million of the 2.3 million premises in the country had access to quality services at year end. The overarching policy objective of the plan is to deliver this vital service to the homes, schools, farms and businesses for the 1.1 million people across rural Ireland who will not be provided this service by the commercial sector. It remains a key priority for the Department. We have now entered into the final assessment stage of the procurement, with a view to making a recommendation to the Government within the coming weeks.

In other sectorial areas covered by the Department, funding to support public service broadcasting amounted to €253 million in 2017. Investment of over €91 million was targeted at the sustainable management of our natural resources and inland fisheries, the protection of our natural environment and the transition to a resource-efficient circular economy.

I look forward to assisting the committee members with any questions they may have today.