Áine Brady (Kildare North, Fianna Fail)

I welcome the opportunity to contribute to the debate this evening. Along with many other Members in the House, I fully recognise that the rising cost of energy, seeking alternatives to existing sources and the security of energy supplies are real challenges not only for our country but also for many other countries across the world.

It is worth pointing out that in 2000, crude oil prices were between $10 and $20 a barrel. In July of this year, crude oil reached $147 dollars a barrel and while prices have eased in recent weeks, they are still close to $100, which is far ahead of last year's prices. As other speakers have pointed out, the consumer does not benefit from any drop in these prices as quickly as they feel the price hike.

The global demand for oil products remains relatively strong, with the emerging economies of China and India still consuming record levels of oil. The geopolitical uncertainties in many oil producing countries, coupled with the current disorderly conditions in the global markets, contribute to the continued uncertainty in global oil markets and hence their prices.

As policy makers, we must try to focus on how we can reduce our dependency on oil. We must continue to formulate policies that reduce our dependency on fossil fuels and increase the supply of alternative energy sources.

In recent years the Government launched a number of worthwhile schemes to assist in reducing our domestic reliance on fossil fuels. The green homes schemes, which I strongly supported when they were introduced, provide support to home owners to invest in a range of domestic renewable energy heating technologies, including solar panels, biomass boilers and stove and heat pumps.

The warmer homes scheme is another example of how we can reduce our dependency on oil. That scheme provides attic insulation, draught proofing, lagging jackets, energy efficient lighting, cavity wall insulation and energy advice at little or no cost to eligible householders. The scheme is targeted at householders in receipt of the fuel allowance, disability benefit or invalidity benefit and is provided for a nominal fee.

This Minister has redirected, within Sustainable Energy Ireland's 2008 allocation, additional funding to the warmer homes schemes. It is up from €2.5 million to €5 million this year, which I welcome. It is anticipated that by the end of the year, over 18,000 homes will have been fitted with energy efficiency measures and I would welcome a further extension of this scheme, given the benefits that are derived from it.

One of the most important ways for people to offset energy prices is to improve the level of energy efficiency in their homes, either by changing their behaviour and usage patterns or by improving the fabric of their homes. I commend the Minister on the recently launched home energy saving pilot scheme which encourages householders to improve the energy efficiency of older housing. This scheme has the potential to significantly improve the energy efficiency of our housing stock. Sustainable Energy Ireland has estimated that those upgrading the energy efficiency of their homes, with the support of this scheme, can expect to save up to €500 per year on their energy bills.

The Power of One national energy efficiency awareness campaign to which the Minister referred earlier, which commenced in September 2006 and is scheduled to run until December 2008, has put the emphasis on using energy more efficiently in our daily lives. That comes very easily once one gets started. The Power of One campaign has captured the imagination of the Irish public. It demonstrates how changing our behaviour in small ways every day will help to save energy while also saving money. This campaign encourages us to recognise our own power and use it. I would welcome the development of further initiatives in improving our energy efficiency.

Energy costs for business are a key concern for this Government, and the cost of energy is a key competitiveness issue. Keeping our costs down for businesses in Ireland is essential to maintaining competitiveness in this challenging economic environment. For us to maintain our current foreign direct investment and attract further investment, our energy costs must be affordable and environmentally acceptable.

Our ability to insulate ourselves against the impact of global energy trends is obviously limited. Under the Energy Policy Framework 2007-2020, however, a range of actions are under way to address the three urgent imperatives of competitiveness, security of supply and environmental sustainability. The energy policy framework, together with the programme for Government, has created energy policy certainty in the short, medium and longer term, with the over-arching objective of creating a supportive, sustainable energy environment for the economy and for consumers. That certainty is important for businesses trying to compete in global markets.

I understand also that significant progress has been made with the east-west connector, which will be owned and operated by EirGrid. EirGrid has secured the connection points in Meath and Wales for the interconnector, which will help secure a more competitive energy supply. In addition, the Government is committed to increasing competition in the energy market. The all-island single electricity market, active since November of last year, is designed to create a more attractive energy market for international investment. I commend the Government on its work in this area and encourage continued Government action.

I would also encourage the Minister and the Government to consider additional incentives to farmers to invest in forestry, in particular the road infrastructure in forests, and ensure we have a sustainable supply of wood for our wood pellet industry. Farmers now have the potential to become key stakeholders in our energy market and build on the progress to date.

Working together using our own power, Government initiatives to reduce our home energy costs and implementing our energy framework policy to ensure a competitive energy supply, we have a comprehensive policy mix to minimise the worst effects of our rising energy costs. I congratulate the Minister on his work and enthusiasm in driving the Government's agenda and commend the amendment to the House.

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