Dáil debates

Wednesday, 19 November 2008

Gas (Amendment) Bill 2008: Second Stage (Resumed)

 

12:00 pm

Photo of Charlie O'ConnorCharlie O'Connor (Dublin South West, Fianna Fail)

I welcome the opportunity to make a brief contribution on this important legislation, the Gas (Amendment) Bill 2008. It is great to see such interest in Dáil business demonstrated in the Gallery although unfortunately I do not have any cousins or relations in Stradbally, County Laois. Nevertheless, it still is good that such interest is being demonstrated. I am sure the Minister's heart is as gladdened as mine.

I compliment the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, on his work and am proud of what he is doing. Given the comments of Deputy Coveney and others, I sense the Opposition also is reasonably satisfied by his actions. Deputy Coveney should not attack me as I merely was interpreting his speech. However, it is welcome that Members are positive regarding legislation on an issue that concerns everyone. Deputy Coveney made a good point about a partnership approach in government. Undoubtedly, the business under discussion falls within the remit of both the Minister for Communications, Energy and Natural Resources and his ministerial colleagues in the Departments of the Environment, Heritage and Local Government, Social and Family Affairs and Transport, as noted by the previous speaker. It is important to make this point. Recently, as Vice Chairman of the Joint Committee on Social and Family Affairs, I have had the opportunity to welcome a number of groups before the joint committee to discuss issues that are of concern to them pertaining to this Bill's remit, to which I will refer later.

In considering the Bill, I contemplated my family history from the perspective of how energy and everything relating to it have evolved through my lifetime. I am a Dubliner of a generation that remembers different modes of transport. I even remember horse-drawn vehicles and how heating was a greater challenge than it is at present. For example, as a small child I remember how my grandmother put coats on our bed to keep us warm. I should note that I look back on such times highly positively. Nevertheless, the Minister is aware that I am concerned about our future direction in respect of energy provision and costs. I wonder what will have happened in respect of energy and related issues in 50 years' time, when I presume most of those present, with the exception of the people in the Gallery, will not be here. In fairness to the Minister, he understands this challenge. Members should focus on the point that what they do now will be important for future generations. Even in these challenging economic times, it is appropriate for the Government to make decisions and to create a vision for the future, even the distant future.

I note the Bill was published to amend section 23 of the Gas Act 1976, as amended, to provide for an increase in the statutory borrowing limit of Bord Gáis Éireann from €1.7 billion to €3 billion. The Bill, which I understand was published by the Minister on 12 November 2008, is short, comprising two sections. Its sole objective is to increase the statutory borrowing limit of the company. It is hoped, subject to normal procedures, that the Bill will complete all Stages in the House. While researching that point, I was interested to learn that the Christmas recess in the House is set for 18 December.

It also is important to understand that connections to the gas network have grown in number from 412,000 in 2002 to more than 570,000 at present. I noted the counties now connected to the gas network include Cork, Limerick, Tipperary, Clare, Waterford, Galway, Mayo, Louth, Meath, Wicklow, Kilkenny, Carlow, Laois, Offaly, Kildare, Westmeath, Monaghan, Cavan, Derry, Antrim, Down, Armagh and my native Dublin. When people learned I intended to contribute on this Bill, they asked how I proposed to slip Tallaght into the debate. Even though this natural resource is present in neither Tallaght nor Dublin as a whole, Dubliners are major consumers and this point should be noted.

Previously, I mentioned my role on the Joint Committee on Social and Family Affairs. It is important to deviate from the direct provisions of the Bill, to which I will return later, to discuss the challenges regarding fuel poverty in particular. The Minister will be interested to learn that, under the chairmanship of Deputy Healy-Rae, a range of interest groups have appeared before the joint committee. The sessions, some of which I chaired, included meetings with the Combat Poverty Agency, the Institute of Public Health in Ireland, Sustainable Energy Ireland, the Society of St. Vincent de Paul, Age Action Ireland and others. It was important to provide such groups with an opportunity to come before the joint committee. As chairman of an Oireachtas joint committee, the Acting Chairman is aware of the importance of facilitating groups which, like Members, have the interests of the public at heart. Such groups are facilitated to enable them to raise their concerns with Members. In fairness to the aforementioned groups, they would admit the joint committee members were aware of the issues they raised. Nevertheless, it was useful to hear their presentations and to hear them articulate the issues that are of great concern to people. Energy provision and fuel poverty issues are matters to which those organisations have paid particular attention.

I often have stated, to paraphrase the former Taoiseach, Deputy Bertie Ahern, that at a time when all boats are rising, one must remember the little boats. Those Members who are particularly committed to social inclusion certainly always have made this point. At present, we are in different and challenging times in which we face a global recession. At times when one is afraid to turn on the radio or Sky News and when all boats are struggling, one must remember the little boats. It is important the Government should continue to do this and I already have referred to the various Departments that have a clear role to play in this respect. The Minister will support this statement. Where fuel poverty poses challenges and concerns for families, I hope we will continue to pay attention.

At the most recent meeting of the Joint Committee on Social and Family Affairs, a number of members referred to the presence of the ESB and Bord Gáis and put on record our acknowledgement of the fact that, while those companies must keep an eye on the bottom line, they are sympathetic towards families in difficulty. Ways should always be found to ensure services are not cut off from families in need. When my co-workers and I contact the companies directly from my busy Tallaght constituency office, they show sympathy. I appeal to them to continue working with families in difficulty to ensure people are not left without fuel or energy. I expect the support of many in saying this. During a presentation, Age Action Ireland was keen to stress this point. I am proud of Fianna Fáil's record of taking care of the vulnerable and families in need over many decades. It is important we do so given the issues of fuel poverty and energy provision.

The point on public transport is interesting. The previous speaker referred to the need for the Minister to have a relationship with the Department of Transport in respect of issues at the top of his list of priorities. I support the Minister in this regard. I make a small contribution, as I do my best to come to work on public transport, particularly the Luas. However, I must sometimes use my car. For example, I came to work this morning through Ballyfermot. If the Acting Chairman tells no one, I will tell him that I had the opportunity to open a new Iceland store in Ballyfermot on behalf of a Tallaght-based company. People must wonder why I was in Ballyfermot, but it was a great day for job creation in difficult times. I needed to use my car in this instance, but it is important that we try to use public transport.

Perhaps the Minister will report me to the Minister for the Environment, Heritage and Local Government, Deputy Gormley, for not deciding on how to deal with the cycling initiative. As some Deputies know, I try to keep fit — I am looking at Deputy Deenihan when I say that I do not jog — because I had a health scare approximately nine years ago. However, I have not reached the point of using a bicycle. Those who drive to Tallaght know that, given the inclining road, cycling to there would not be easy.

This morning, I listened to a debate on cycling on Pat Kenny's radio programme. While it may be two-faced of me, I support the opinion that people should get on their bicycles. The Minister is cycling and I saw his colleague, Deputy Gormley, cycling through the gate last night. People sometimes guffaw, but it is important that bicycles be used, given the issues of public health and the environment. Perhaps I should take on the challenge of cycling to work. I will try to follow the green agenda.

A number of groups met the Joint Committee on Social and Family Affairs in respect of fuel poverty. The Minister shares the responsibility with a number of his colleagues, but it is important we continue to focus on the issues. In other debates, reference was made to the question of a fuel allowance. I am pleased with the progress made in this regard and I will continue to campaign to have the Minister for Social and Family Affairs consider the challenges posed by that aspect of Government policy. We should try to help those who need assistance with fuel bills.

The current fuel policy is to pay for 30 weeks, an increase on last year's amount of 29 weeks. The value of the allowance has been increased to €18 and approximately 300,000 households are in receipt of it at a cost of €156 million per annum. It is positive that expenditure has been increased, but fuel poverty is a structural problem and often relates to heating systems and housing quality.

Recently, I read a report that referred to the fuel allowance as heating the sky. The Minister understands this claim better than I. It was made on the basis that, when someone buys and burns a bag of coal, the heat efficiency of which is 20%, 80% of the value dissipates. It is like pouring water in a bucket with a large hole at the bottom. It will not fill up because there is a structural problem that must be fixed. This highlights the need for a multifaceted response from the housing authorities, which is South Dublin County Council in my case, the Departments of the Environment, Heritage and Local Government and Communications, Energy and Natural Resources, the energy authorities and the social welfare groups.

The Minister will agree that each Department has a vested interest. For example, the Department of Social and Family Affairs would be keen on the savings achieved through improvements in the basic problem. Similarly, other interests would have improved benefits were the problem addressed. There is a strong case for the Departments and Ministers to put their heads together to determine what can be done. I suspect the Department of Social and Family Affairs might argue that it is not the lead Department, in which case the matter will be open to question. At the Joint Committee on Social and Family Affairs, I took the initiative and asked to have correspondence sent to the different Departments to ensure the issue is addressed. I ask the Minister for his support in this regard.

The fuel allowance is a household payment and, as it is means tested, only some households are eligible. In recent years, many Members have witnessed a greater reliance on the fuel allowance as a policy instrument, but there are those who argue that the policy is flawed in terms of poverty traps and who can benefit. There are limits to what one can expect from a fuel allowance as a policy response. Increasing mainline welfare payments might be a better approach. The Minister for Social and Family Affairs, Deputy Hanafin, will wrestle with this suggestion. It is important that all of our eggs are not placed in one basket.

I hope I am getting across the message that, while the Bill might seem simple on first reading, it is also important. As the debate has evolved, we have been able to express the different points of view and relevant issues. The opportunity to do so has been vital. It is good the Minister has been able to stay in the House and listen to contributions. He will be encouraged by our across-the-floor support for his attempts. At the same time, however, everyone has highlighted the challenges that exist and the fact that an integrated approach should be adopted by the Government Department with an interest in this matter. I often wonder how this issue will be dealt with in 50 years' time. In that context, we owe it to future generations to take an interest in it.

Bord Gáis Éireann's need for an increase in its statutory borrowing limit has been brought about by the continued growth in the scale of its business. The company will reach its current statutory borrowing limit early in 2009. An increase in this limit is required in order that the company might continue to fund its capital expenditure programme over the next five years. The programme to which I refer includes the ongoing expansion of the company's core gas business and its development as a major energy company.

It is important that the Minister should achieve his goal of having the Bill passed by both Houses before the end of this session. As already stated, Bord Gáis's borrowing limit is expected to be reached early in the new year. The company clearly needs to obtain access to the funds necessary for the proper development of its business in the competitive market in which it operates.

During the course of my contribution, I did not refer to any great extent to my constituency. However, I am always happy to represent the people of Dublin South-West, including those who live in Tallaght, Greenhills, Firhouse, Templeogue, Bohernabreena and Brittas. Deputy Deenihan knows Tallaght well.

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