Dáil debates

Tuesday, 7 November 2006

8:00 pm

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)

I hope he will.

The Irish Small and Medium Enterprises Association, ISME, has claimed the cost of electricity for SMEs has risen by 89% in the past five years. It also claimed energy costs are now the "number one enemy" for SMEs. ISME reported that the recently sanctioned 34% increase in the price of gas will result in an additional energy bill of €13,000 per annum and that a "typical SME will have to increase turnover by €250,000" to pay for the increased cost of gas. Clearly, across the spectrum of opinion, business leaders believe the Minister and CER have totally failed to address the devastating impact of increases in energy costs, especially in respect of electricity and gas.

In his motion, Deputy Durkan rightly dealt with the pernicious impact of soaring energy costs on national competitiveness. Let me highlight the devastating problem of fuel poverty which these increases have caused throughout the country. During my walkabouts and at my information clinics, it has become clear to me that the terrible financial burden price rises have imposed on families represents a disaster. The Acting Chairman has had a similar experience in his constituency, which is beside mine.

During last year's bitterly cold winter, I talked to numerous senior citizens who were wearing big overcoats in their homes during the day to stave off the cold and damp because they were so fearful of the bills that would accrue if they turned up their heating. The past two winters were the coldest I can remember and it appears the coming winter will be similar. In spite of this, energy prices are going through the roof as we are beginning to deal with the possibly disastrous impact of climate change.

Earlier this year, I raised the very serious matter of energy poverty with the Minister for Health and Children, Deputy Harney, on behalf of some very vulnerable senior citizens in my constituency. Eastern Community Works Limited, with which Deputy Carey will be familiar, is an agency of the Health Service Executive that assists senior citizens and citizens with disabilities to carry out essential improvements to their homes. When we contacted the organisation last May, we discovered its total budget to assist senior citizens and vulnerable families in 2006 had run out in the middle of April. This shows the concern the heartless outgoing Administration has for the most vulnerable families in our HSE region. This is an appalling state of affairs.

We were told recently by the Society of St. Vincent de Paul that a massive €3.5 million of its annual budget will be used over the coming winter months to help families to pay gas and electricity bills. The society also warned that far too few people are eligible to claim supports for fuel bills and that too many people will be left struggling to pay their heating and light bills this summer.

I have quoted many times in this House the famous report of the sociology department in UCD which states excess mortality in this city and every county in the State could be directly attributable to fuel poverty. Nevertheless, the Minister of State, Deputy Browne, published a Green Paper on energy that contained only a single page on energy poverty. This indicated his concern for the poor and vulnerable families. This is totally unacceptable. The Deloitte & Touche report, which was published on the same day as the Green Paper, states almost one in five Irish people is defined as "fuel poor". This is an astonishing legacy for any Government. One in five of our citizens will deliberately cut back on their energy use tonight and every night during the coming winter, which could be as cold as the last two winters, because they cannot afford the prices set by the Government. We have gone through the rigmarole of hearing the bluster of the chairman of the Joint Committee on Communications, Marine and Natural Resources about CER and regulation.

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