Éamon Ó Cuív (Galway West, Fianna Fail)

The Government has announced its intention to introduce a carbon tax, which will come into effect on heating products from May 2010 and on solid fuels at a date to be set by commencement order. Before the tax is applied to fuels for home heating, arrangements are being made to assist those most at risk of fuel poverty. In his carbon budget statement, the Minister for Environment, Heritage and Local Government, outlined details of €130 million in funding for insulation, €76 million of which will be used to assist low income families.

The Department of Communications, Energy and Natural Resources has overarching responsibility for the energy portfolio and has convened an interdepartmental and inter-agency group on affordable energy to co-ordinate and drive Government policy in this area. The interdepartmental and inter-agency group has been asked to draw up an energy affordability strategy. This strategy will set out existing and future approaches to addressing energy affordability and will have regard both to the impact of the carbon tax on low income households and the range of supports outlined above in making its recommendations. The group will make recommendations on the precise package of measures, including in the area of income support, that should be put in place to assist those at risk of fuel poverty.

In the meantime, the Department of Social and Family Affairs will continue to assist social welfare recipients with heating costs both through their basic payments, through the fuel allowance and through the household benefits package of electricity and gas allowances. These schemes have been improved significantly in recent years. Additional information not given on the floor of the House.

Proper household insulation is absolutely vital in tackling fuel poverty. Initiatives such as the warmer homes scheme, operated by Sustainable Energy Ireland, under the aegis of the Department of Communications, Energy and Natural Resources, have a very valuable role to play in that regard, as does funding from the Department of the Environment, Heritage and Local Government, to improve the quality of existing local authority housing and the housing adaptation grants for older people and for people with disabilities. Considerable progress has been made in this area in recent years.

See this speech in context