Pat Rabbitte (Dublin South West, Labour)

The Sustainable Energy Authority of Ireland, SEAI, administers the low income housing retrofit programme, Better Energy: Warmer Homes, on behalf of my Department. As I announced in the context of the budget, the Government has committed significant funding of €76.146 million to the wider better energy programme this year, of which €17.146 million is allocated to its Better Energy: Warmer Homes section.

The 2012 allocation of €76.146 million for the overall better energy programme, including Better Energy: Homes, is an overall decrease of 19% year on year. I was able to secure an additional €30 million from the jobs initiative last May. This figure, combined with the 2011 budget allocation of €60 million and €6 million in savings, brought the 2011 total to €96 million. This is a substantial allocation at a time of severe budgetary constraint and in the context of the overall reduction of €750 million which the Government had to make on capital expenditure in 2012. The programme continues to underpin significant economic activity, supporting at least 4,500 jobs and realising significant energy savings for households. The relative prioritisation accorded to the programme is a recognition of its economic, employment and environmental impact.

Grant levels for half the measures under Better Energy: Homes have been adjusted for 2012 in light of market developments and to ensure a better link between grant support and dwelling type. For instance, the reduction in the external wall insulation grant reflects increased price competitiveness in the market and the relative cost of undertaking this work on the various house types.

Additional information not given on the floor of the House.

Since the start of 2012, there has been a decrease in applications across all measures in Better Energy: Homes. The factors behind this trend are unclear and I have asked my Department and the SEAI to report urgently to me in the matter. For example, take-up of the external wall insulation measure has decreased by the least amount, despite the grant level for this activity being reduced by the highest amount. Nevertheless, I would be concerned by any adverse employment impact resulting from the adjustments in grants, while accepting that the scheme must be operated within the allocated budget in 2012.

It is difficult to assess the extent, if any, of job cuts on Better Energy: Warmer Homes as it has a smaller allocation than Better Energy: Homes and is primarily delivered by community-based organisations, of which 26 typically operate back-to-work schemes. In locations where no community based organisation is active, the SEAI ensures measures are delivered by private contractors who are appointed on the basis of a competitive tendering process. In this regard, an invitation to tender was recently published by the SEAI in the EU Journal to establish a new panel of contractors to augment the community-based organisation network. The procurement process will take a number of weeks to conclude and a panel should be in place in May.

This year will see a shift in focus in the Better Energy: Warmer Homes scheme to take account of the publication of the affordable energy strategy and the involvement of energy suppliers in meeting their energy savings targets agreed as part of their voluntary agreements with the SEAI. This new approach will see greater focus placed on introducing an area-based approach to low income housing retrofits. This will result in more opportunities for both community-based organisations and private contractors.

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