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 Jennifer WhitmoreJennifer Whitmore (Wicklow, Social Democrats)
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I thank the Minister for his updates. My first question follows on from Deputy O'Rourke's points about poverty-proofing and the use of departmental funds for the universal electricity rebate. There have been talks about excise duty rates and a swing mechanism being put in place for that. Has the Government had any discussions about VAT reductions? Hitting the VAT and tax would have been a much more efficient way of doing it. The premise behind the electricity rebate was that it was to be universal and quick but it could be six months before this measure actually hits people's bank balances or electricity accounts. It certainly has not been quick and is not meeting people's needs now, whereas a reduction in VAT or excise would be an immediate reduction that people could feel. It would also mean that the budget of the Department was not impacted by the measures. As part of its toolbox for dealing with the fuel crisis, the EU has specified that VAT is one of the tools that should be used by governments. Has the Government had any specific discussions with the EU on whether a penalty-free derogation could be applied, just because of the crisis we are in, when it comes to VAT measures?

On the swing mechanism that has been talked about for excise, what I have seen reported is that it will apply to the increase, so if there are any further increases in the price of fuel, the swing mechanism will come into play. Does that mean the Government is essentially setting a cap at where we are at the moment? Where we are at the moment is completely unacceptable and is putting huge pressure on families and businesses. I am concerned that the Government thinks it is only the future increases that need to be dealt with through excise measures.

Regarding the one-stop shops and retrofitting, I understand that the portal is open and a number of applications have been made. The last time I heard the Minister speak about this, he said the process should be complete this week. Is that still on track? When does he foresee the announcement of how many companies have registered under the one-stop shop process? Will that be available shortly?

On just transition and ensuring we help the people who need it most, were there any conditions put onto companies registering as a one-stop shop? Were there any conditions stating that they needed to be targeted in their approach? As Deputy Bruton mentioned, that aggregate approach is the quickest and most efficient way, as someone could deal with all the houses in an estate in one go. Is there a requirement on these companies to be targeted so they do not just pick the lowest-hanging fruit or the easiest and cheapest houses to retrofit? It should be done on a socioeconomic basis or based on the age profile of the house. Is there a requirement on these companies to provide a certain number of apprenticeships? One of the problems we will face as this ramps up is the skills shortage and we need to address that. If there was a requirement on these one-stop shops to provide a percentage of apprenticeships, that would be very positive. Is that condition on them as well?