Pat Rabbitte (Dublin South West, Labour)

I thank Deputy O'Mahony for raising this important issue which is of considerable concern to me and my Government colleagues. I did not anticipate the aspect of criminality to which the Deputy referred. I am aware that the type of behaviour outlined is occurring and that the customs division of the Revenue is focused on dealing with it. This is a matter of some significance which must be addressed and in respect of which vigilance is required, particularly in the context of the reported scale of the problem. I understand an incident relating to this aspect of the matter is currently in the news.

On the wider issue raised by Deputy O'Mahony, it must be acknowledged that Ireland is critically dependent on imported fossil fuels, especially oil and natural gas. Global fuel prices have been trending upwards in recent months and Ireland, along with other countries, is a price taker in international commodity markets. While active competition in retail energy markets will keep increases to a minimum, the reality is that increasing global fuel prices ultimately result in higher costs for Irish consumers, whether at the petrol pump or in electricity and gas bills. I am keenly aware of the impact this has on consumers and I am, therefore, strongly focused on implementing the programme for Government actions aimed at reducing the impact of imported fossil fuel prices on householders and businesses.

The programme for Government sets out a range of commitments on energy efficiency and renewable energy programmes which are aimed at moving the economy away from reliance on imported carbon intensive fossil fuels, in respect of which there continues to be significant price volatility. These ambitious measures will support energy affordability, enhance Ireland's competitiveness and develop new jobs and industries. I am of the view that Ireland has the opportunity to become a global leader in the commercialisation of next generation bioenergy technologies, as well as a manufacturing hub for renewable and low-carbon technologies.

The new retrofit programme will also support employment by seeking to increase significantly the pace of uptake in respect of energy efficiency measures and by changing radically the way householders are incentivised and supported. One of the most commonly identified barriers to retrofitting is that the initial cost appears prohibitive. Under the new proposals, energy efficiency measures will be more accessible by the provision of discounts up front rather than obliging people to wait for retrospective grant payments. The new programme will entail the existing warmer homes scheme, the home energy saving scheme and the greener homes scheme being incorporated into the programme during the course of the year.

The warmer homes scheme is systematically addressing poor thermal efficiency performance of low income, privately owned housing. It provides energy improvements at no cost to eligible households and brings benefits to recipients in the context of energy affordability, tangible health improvements and overall well-being. The scheme is complemented by a similar retrofit programme which is delivered by local authorities on behalf of the Department of the Environment, Community and Local Government. In addition, the fuel allowance provides many families with essential financial assistance in respect of the purchase of fuel. More than 370,000 households received the fuel allowance in 2010.

Grant aid to move to renewable heating is also being provided under the greener homes programme. This is allowing householders, businesses and local enterprises to move away from oil fired heating towards more efficient and sustainable forms of heating such as those produced from solar, geothermal and biomass sources.

In the transport sector, to which the Deputy referred, we are supporting a move away from imported oil through the successful introduction of bio-fuels into the fuel chain as well as an electric vehicle programme. I launched the electric vehicle grant scheme, which will sustain and expand Ireland's leadership position with regard to this new and rapidly developing technology, earlier in the year. Electric vehicles offer huge potential for Ireland not just because of their energy efficiency, but also because of the ability they provide to use cheap grid sourced electricity, an increasing amount of which will be sourced from renewable resources over the coming years.

This will have obvious benefits in reducing our dependence on imported fossil fuels in the medium term, but our early and considerable involvement in the electric vehicle sector will also provide enterprise opportunities for Irish companies. On foot of trial and pilot programmes, a number of Irish companies have already built charging systems and are involved in software design of the infrastructure.

The bio-fuel obligation scheme incentivises and enables the sustainable growth of the Irish bio-fuels market and supports indigenous bio-fuel producers, allowing for the displacement of traditional oil products in the transport sector. In total, during the first obligation period, the obligation scheme was responsible for bringing a total volume of 98.5 million litres of bio-fuel into the motor fuel market in Ireland. This equates to more than 4.25% of the transport fuel market in the State, up from practically zero in 2005. The range and breadth of the actions set out in the programme for Government demonstrate the Government's commitment to reducing the impact of high fossil fuel prices, enhancing security of supply and ensuring competitiveness.

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