Dáil debates

Wednesday, 15 October 2008

Financial Resolution No. 15: (General) Resumed

 

5:00 pm

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)

In what was undoubtedly going to be a very difficult budget, one of the priorities was to make sure that spending increases would be possible in social welfare, health and education. While the increases may not have been what the Minister, Deputy Harney, and the Minister, Deputy Batt O'Keeffe, had hoped for in their Departments, it was important for the Government to give a signal that those were the areas in which we wanted to prioritise any spending increases. Other Ministers, including myself, have to do whatever we can to make cuts in spending to try to facilitate that protection of crucial social services for our people.

Our Department exceeded our targeted cut in the administrative area. The overall current and capital spending reduction was around 7%. While that is not something we welcome, we now have the opportunity to provide economic development and good fiscal management. It was right for the Department to manage that reduction and to look for efficiencies in order to deliver the same level of service, while cutting our overall Vote at the same time. Around €366 million has been provided for the current side, although much of that includes money which is being transferred through the account, such as television licence fees. On the capital side, €134 million has been provided for. This still allows us to provide an important stimulus package to several crucial industrial areas in the development of our economy. I would hope that the capital amount would be augmented by a certain amount of carryover from budget overruns in sections that do not use their full allocation. That will help us in meeting our key projections for 2009.

Our own payroll budget is slightly out of line, but this is because we have had a transfer of resources from other Departments. We have taken on responsibilities that were previously in the Department of the Taoiseach. The overall administrative budget decreases by 8%. This will put pressure on the Department to manage its affairs in a way that delivers real efficiencies. The State agencies that are tasked with delivering many of the projects will find it difficult because of the tightness on the current expenditure side. However, I believe they can do it. In this respect, the Government made a strategic decision that it was better to proceed with a development of a single national fisheries authority, maintaining our regional offices and structures, but not the regional boards as they currently exist. That strategic decision is one for which I will have to legislate in the establishment of a new national fisheries authority.

One of the areas in which our Department has real potential to help us all through these difficult times is to stimulate new economic development and create new jobs. We cannot concentrate on the contraction or management of financial resources alone. We must develop a new economy which delivers new jobs and new revenue to pay for the social services that will be needed in future years. This is our central role. I regard my Ministry as a crucial economic development Ministry and I see a potential to develop new economies, particularly in the area of energy and broadband services. In that regard I was pleased that the Minister for the Environment, Heritage and Local Government, Deputy Gormley, was able to announce the Cabinet decision to increase the target we are setting for development of renewable electricity as outlined in this year's publication of the all-island grid study. It behoves all State agencies, the regulator, the sustainable energy office and other Departments to row in on a co-ordinated approach to meet those targets. The difficult economic climate and credit crisis will make it difficult to allow for capital allocations and capital spending in this area. We are facing difficulties and a significant challenge but I am committed to rising to this challenge to create new jobs in the energy industries and to provide cheaper and cleaner electricity to power our economy.

I am pleased that funding of €71 million has been made available to fund sustainable energy and energy research programmes. Sustainable Energy Ireland will be the key agency. I hope to strengthen its resources and its operational structures to allow it to deliver an ever-expanding budget. The agency has been in existence for five or six years but it needs to have strengthened structures in recognition of its increased workload. The home energy savings scheme was launched last year on a pilot basis and it appears to be proving very successful. It is very popular in the areas of the country where it has been introduced. It has been very successful in economic terms as the analysis shows that energy efficiency, in particular insulation of existing buildings, gives the quickest and best economic return. There is a return to the State in terms of lower emissions and lower fuel use but also a return to the householder in terms of cutting back household bills at a time when gas and electricity prices are very high. I am looking forward to expanding that programme and to running it in conjunction with a rapidly expanding warmer homes scheme.

We will seek an innovative approach from the public utilities to assist in the delivery of energy saving measures to low income households so that they can cut back on their bills. This has to be taken in tandem with the work being carried out by the Department of Social and Family Affairs and the Minister at that Department, Deputy Mary Hanafin, in the area of fuel poverty. We wish to help people not only in fiscal terms but also to reduce their use of electricity which is the best long-term solution to the issue of fuel poverty.

My Department's other key development in the energy area will be publication of and action taken on the national energy efficiency action plan. Particular attention will be focused by my Department, with my colleagues in other Departments, on how the State can achieve real savings in our classrooms, hospitals, prisons and Garda stations. We must lead in the efforts to save money for the State. The investment in energy insulation and efficiencies within our offices and Departments is one of the best ways of delivering efficiencies. This public sector programme, in which I hope Sustainable Energy Ireland will take a lead role, will be crucial. I will be working with my Government colleagues to see what real programmes can be delivered collectively to reduce our energy use.

I refer to continuing investment in expansion in new areas. The ocean energy unit was successfully established in Sustainable Energy Ireland this year. As part of the ten-year plan set up a number of years ago, this unit must move into the launch of prototype devices and we must expand into new areas. I appreciate the Minister for Finance has seen the sense of the capital tax supports available for businesses to help them in that regard.

The key developments in the communications area will be the delivery of our national broadband scheme and of high speed broadband to secondary schools to allow students in those schools to avail of the fastest broadband speed. I refer to the continuing work of the national digital research agency in developing Ireland as a real centre for the global knowledge economy.

Given the current spending restrictions, it will be difficult to deliver in other core areas of my responsibility. However, key projects such as the remediation of existing mine sites, the seabed survey, the provision of TG4 and the fisheries boards will continue to be provided for and are a crucial part of the work to be undertaken.

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