Catherine Byrne (Dublin South Central, Fine Gael)

I welcome the opportunity to speak on this issue. I thank the Labour Party for bringing this matter to the House and I thank Deputy Leo Varadkar for sharing his time with me.

For most people, fuel is the basic fundamental need. We all need it to keep warm, cook, heat water and travel. It is not a luxury. However, fuel poverty is a real threat for many people. The steady rise in the price of gas and electricity in recent years has put a huge financial burden on many low-income households, and the elderly in particular. This has resulted in many people not being able to pay their bills and struggling just to keep warm on a daily basis.

The Government continues to increase taxes in the form of a carbon tax on oil and gas, which came into force last May, and the recent introduction of the PSO levy on electricity from 1 October. Fuel poverty exists when a household needs to spend more than 10% of its household income on energy or fuel to keep acceptable levels of heat throughout the home. The new carbon tax has brought a rise in electricity prices and the new green levy has put an extra burden on many elderly people, people with disabilities and the most vulnerable families in our communities, while the Government should be focusing on energy efficiency programmes. The cost of gas, electricity and, particularly, solid fuel increased hugely between 2008 and July 2010. The cost of solid fuel increased by almost 10% while the cost of bottled gas rose by 17.8% and electricity rose by 3.3%.

This is not sustainable and is pushing many families over the poverty threshold. Recent reports of people's electricity being cut off because they could not pay their bills are truly shocking. Many people are vulnerable at present and the current figure of more than 2,000 households being disconnected for non-payment every month is not acceptable. More and more people are relying heavily on the Society of St. Vincent de Paul to top them up each week so they can manage to pay their home heating bills and keep food on the table. The Society of St. Vincent de Paul does a great job and it can do it because of the many charitable people who extend a hand to the society in donations. This cannot continue forever and the Society of St. Vincent de Paul should not have to clean up the mess made by the Government.

The Department of Social Protection pays a fuel allowance of €20 per week from September to April. While this is welcome, it only covers a small proportion of a fuel bill and is more of a gesture than a genuine commitment by the Government to help people meet their fuel costs.

The new carbon tax that was introduced this year has increased the price of a bale of briquettes by 10%, a kilowatt hour of gas by 7% and 1,000 litres of fuel oil by 8%. In other words, it will add approximately €43 to a 1,000 litre fill of oil and €41 to the average annual gas bill. How on earth can people be expected to afford these extra costs when so many are struggling financially, which is not their fault?

When the Government announced that it planned to introduce carbon tax it stated that it would protect those most at risk of fuel poverty. I would like to know how this is this being achieved, because those I have spoken to feel the pinch and they do not feel they have been protected by the Government or by the State. Many organisations, such as Age Action, Older and Bolder, The Carers Association, the Alzheimer Society of Ireland, the Society of St. Vincent de Paul, Alone, MABS and many others, called on the Government not to introduce the PSO levy on electricity. This will mean an increase of almost 5%, or an extra €2.73 on a monthly ESB bill. This charge came into effect despite the financial hardship the Government has caused. I welcome the announcement by the Minister for Social Protection, Deputy Éamon Ó Cuív, that he has decided to increase the electricity allowance provided by his Department to cover the PSO levy. This will come as a welcome relief to older citizens, who are very worried about making ends meet. However, this is like robbing Peter to pay Paul, as the money needed to increase the electricity allowance has to come from the Government purse. The question remains, will the new levy generate enough income to justify all the worry and confusion caused by the Government?

Fuel poverty is a very real worry for older people because they are more fuel dependent than any other group in our society. On a daily basis, and particularly on a nightly basis, I meet many older people in their homes and bed-sits who are unable to turn on the electric fire because they are afraid of the cost. Many elderly people rely on a small fixed income and spend a high proportion of it on fuel and energy. They have budgeted every penny for their basic needs. Even a €3 increase in their monthly bill might as well be an increase of €200 or €300. Rising fuel costs have a devastating impact on older people and they simply cannot afford for the price to get any higher.

Many older people spend more time at home and need to be kept warm, especially if they are vulnerable and unwell. Many live in old properties without proper central heating or insulation and many rely on electric heaters, which cost a fortune to run. I am also concerned about elderly people living in flat complexes. I am familiar with senior citizens' complexes run by local authorities where the heating is controlled from 7 a.m. until 11 p.m. This is not acceptable, particularly when many elderly people wake up during the night and tend to walk around in the cold because they are afraid to turn on their heaters. Ireland experiences a high rate of winter deaths compared to other cold European countries. Between 1,500 and 2,000 deaths occur each year. Last winter was one of the harshest on record and this year appears to be going in a similar direction.

The health and well-being of our citizens, young and old, must be safeguarded but this can only be achieved once fuel poverty is eradicated. The Government must wake up to the crisis of fuel poverty among the low paid and the elderly and do all it can to ensure people are not forced to choose between heat and putting food on the table. Is the Government really intent on sending us back to the dark ages of candlelit rooms and our fathers' overcoats on our beds? I commend the motion to the House.

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