Eamon Ryan (Dublin South, Green Party)

I commend Fine Gael on putting down a motion on this crucial matter which is the most important and fundamental social issue facing the country in the coming winter. It is recognised as such on this side of the House and it calls for action and consideration as to what additional measures we can take to help people through that difficult time.

Earlier this year I attended a presentation by an environmental colleague from the United Kingdom, Jonathon Porritt, who argued the central point in sustainability is social sustainability, as part of a wider environmental picture. That measure should set our work in the Departments of Communications, Energy and Natural Resources and Social and Family Affairs.

Regarding forces at play with the crisis in energy and fuel affordability, one central issue is that we are facing into a fundamental geological reality that will mean this is an ongoing problem. There will be an imminent peak in global oil production which, as one American commentator said, is a down escalator we will have to get up. We are facing a peak in global oil production followed by contraction. It is a real problem in a world in which our use of oil has expanded each year. It is one of the main factors behind the energy price increases cited by Deputy Simon Coveney. It has a knock-on effect on gas and coal prices because energy resources are interrelated. Gas, for example, can be used as a substitute for oil in certain circumstances and coal can be used as a substitute for gas. A fundamental energy price shift has occurred due to the supply constraints that are becoming evident in the oil market.

There has been a welcome reduction in recent months from the highs in the summer of $145 a barrel. I believe such volatility in oil prices will continue. While not pretending to be exact, my fundamental analysis is that we are unlikely to see the price of oil below $100 a barrel for a prolonged period. We may see further spikes and increased volatility as we come to that point of real conflict when it is difficult for supply to expand to meet contracting supplies.

The International Energy Agency has done useful work in recent years in setting out that reality. Previously it was a cautious agency with regard to supply issues but it is now increasingly alarmist with regard to the fundamental analysis on availability. This autumn it will produce a further 2008 world energy outlook which will include, crucially for the first time, a field-by-field analysis of 700 of the largest oilfields around the world. We should heed with interest the advice the agency gives and take it into account in our policies across a range of Departments.

It is important that people understand some of the fundamentals behind the energy price rises we are facing and that we must deal with. Our approach to energy price rises must be twofold. The first and most important approach is in the provision of social welfare protection in schemes, such as the fuel allowance, paid under the household benefits package. The Minister for Social and Family Affairs, Deputy Hanafin, will outline the details of the Government's response in targeting low-income households and providing protection for them. As well as providing support to cover the cost of fuel, we must also examine how we help recipients to use energy in a more effective and efficient manner and reduce their need to purchase fuels. Evidence shows that such behavioural changes, which may seem less significant than some of the physical changes that can be made, are central to cutting fuel bills. That requires concentration on a number of key areas. We must increase the level of energy efficiency in residential buildings, particularly for those on low incomes.

I accept Deputy Simon Coveney's point that sometimes it appears these changes are long term and do not affect people's everyday lives. The reality Ireland faces consists of vulnerability to oil supply shocks and our geographical location at the end of gas pipelines from Russia. We must change our fundamental energy infrastructure so we are not reliant on fossil fuels which will become increasingly expensive. Instead we must have local and renewable supplies which will create jobs, cut our fuel import bill and keep money in the country.

Deputy Allright asked about the interdepartmental and inter-agency group——

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