Dáil debates

Wednesday, 1 October 2008

8:00 pm

Photo of James BannonJames Bannon (Longford-Westmeath, Fine Gael)

On behalf of those throughout the country who have no voice, low incomes, big overheads and are facing a bleak winter, I am glad of the opportunity to speak on this motion, which highlights the Government's shameful disregard for those experiencing energy poverty. I thank my colleagues, Deputies Coveney and Enright, for tabling this motion, which has far-reaching implications both for energy and social welfare issues. Government cutbacks, soaring prices, capped incomes and rapidly rising live register figures mean that our most vulnerable citizens, particularly the elderly, will not have the money for both food and heating this winter.

The Society of St. Vincent de Paul has seen a rise of almost 40% in calls for help to its Dublin offices alone, primarily concerning increased energy, fuel and food costs. This is indicative of the Government's mismanagement and neglect. Winter mortality in Ireland is high compared to other EU countries. According to a UCD study covering the years 1988 to 1997, Portugal suffers from the highest rates of excess winter mortality at 28%, followed jointly by Spain and Ireland at 21%. The link between environmental temperatures and thermal inefficiency indicates that housing standards in southern and western Europe play a strong part in such mortality rates.

It is incumbent on the Government to develop a national strategy to address energy poverty. This matter cannot be put on the long finger by the Government; it must be tackled urgently by providing a cohesive plan, incorporating pricing and income supports, and having a detailed timeframe for delivery.

We are in a crisis situation with 227,000 households experiencing varying levels of energy poverty — a shocking figure by any standards — and electricity prices increasing by 134% from 2000 to 2008. In addition, the recent 20% rise in gas prices is to be followed by another increase in January. When we use the term "poverty" we are making an evaluation; it means not just that people are in a certain situation, but that something ought to be done about it. The Government must do something about this. This is the Government that coasted through the boom years on the crest of a wave, but the wave failed to impact on those who were living and continue to live on or below the poverty line.

Instead of using the wealth of the Celtic tiger years to address such situations, the Government squandered it. The reality for many people this winter will entail rising fuel prices and the unenviable choice between heating and food. Let there be no misunderstanding — it will be a winter of discontent with the Government coming under increasing attack.

This national crisis combined with the international situation demands the immediate establishment of a national strategy to address energy poverty. Under such a strategy, joint energy markets with the UK and mainland Europe could be combined with legislation to permit the Commission for Energy Regulation to set a maximum price as opposed to a set price.

In a report published yesterday, the Environmental Protection Agency again warned that Ireland is facing a major challenge in meeting EU targets on reducing greenhouse gas emissions. The Government must utilise the positive impact that increased energy preservation would have in helping to reverse this trend. However, the possibility of carbon taxes being introduced by the Government would see low-income households being proportionally the most penalised as they tend to be forced to use the most carbon intensive fuels and inefficient heating systems.

Under current Government policy, consumers stand to assist electricity generators, primarily the ESB, to make unearned gains of up to €1.6 billion under the current phase of the carbon allowance credit plan. Fine Gael has exposed this unacceptable situation and is proposing that the Government recoups this windfall, using it to alleviate fuel poverty. The forthcoming budget must be used positively by the Government to assist the socially disadvantaged, including those in energy poverty. The budget should not be used, as many believe it will, as proof that the Government is using the economic downturn as an excuse to cut back on the social equality agenda.

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