Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

I wish to share time with the Minister of State at the Department of Foreign Affairs and Trade, Deputy Joe Costello.

I welcome the opportunity to outline to the House some priorities for which I have responsibility, which are critical to the economic and social well-being of citizens and businesses across the State. The fundamental objectives of energy policy are the security, sustainability and competitiveness of energy supply. The programme for Government set clear objectives in a range of areas, including retrofit, network development and renewables. I am pleased to report significant progress to date, as well as work which is ongoing.

Last year we reached the significant milestone of having provided energy efficiency measures for 250,000 homes under the Better Energy programme, which represents approximately one in six of all homes. Between 2011 and 2013, more than 87,000 homes received energy upgrades, disbursing close to €100 million in Government grants. This year the Government is committed to spending an additional €57 million on the Better Energy programme which will deliver upgrades to a further 32,000 homes and support 3,500 jobs in the retrofit industry.

Government policy on energy affordability is founded on the principle that everyone should be able to afford to adequately light and heat his or her home. Our energy affordability strategy, Warmer Homes, has identified three key factors which dictate whether someone falls into energy poverty: costs, income and thermal efficiency. We will continue to ensure those on low incomes are supported through the household benefits package and specifically through measures such as the electricity and gas allowance and the fuel allowance. However, the most meaningful measure we can take is to improve the thermal efficiency of homes and, thereby, permanently reduce people's exposure to increasing energy costs. Extensive grants are available to cover the cost of retrofitting homes under the Better Energy-Warmer Homes scheme. Since its launch, more than 105,000 households have received free energy efficiency upgrades. This year alone 12,000 low-income homes will receive a free upgrade.

A protocol is in place to minimise the number of energy disconnections. Where vulnerable customers subscribe to a payment plan with the supplier or have a pay-as-you-go meter installed, they may not be disconnected. I am delighted Deputy Michael Colreavy is in the House, as otherwise for the first time in the history of Dáil Éireann I would be speaking to myself. I have been in discussions with the supply companies and the Commission for Energy Regulation to agree further steps to deal fairly with and, in so far as is reasonable, protect these customers. I will make an announcement in this regard soon.

I published a national energy services framework in December 2013. It sets out a roadmap to develop an energy efficiency market for the non-domestic sector. A total of 21 exemplar projects have been selected to test and provide feedback on approach, tools and structures. These demonstration projects will potentially result in up to €54 million being invested in energy efficiency measures, with a target of delivering €7 million in savings annually. A sum of €9 million will be spent over three years on an energy conservation programme for the public sector. This new programme will target more than 500 large buildings, aiming to achieve energy savings of 18% once the programme is fully rolled out.

The Government has also committed up to €35 million for investment in an energy efficiency fund, with a view to building up a fund in excess of €70 million, including matching investment from the private sector. This fund will enhance the level of finance available to support the clear opportunities provided in the public and commercial sectors. We have identified a preferred bidder to manage the fund and, subject to finalisation of terms, expect to open for business shortly.

Transition to a sustainable, low carbon, energy system is central to Government policy. Implementation of this policy, as well as delivering substantial environmental benefits, is securing significant economic benefits for the State and citizens. The 2009 renewable energy directive set Ireland a target of 16% of total energy requirements being met from renewable resources by 2020. To achieve this target, we are committed to meeting a figure of 40% of electricity from renewable resources by 2020. To date, wind energy has been the largest driver of growth in electricity generation. The wind energy sector directly employs approximately 3,400 people. In addition, the SEAI estimates that €255 million worth of gas imports was avoided by wind energy production in 2012 alone. Renewables will continue to play a key role in the transition towards a competitive, secure and sustainable energy system. The European Commission recently outlined ambitious plans to reduce carbon emissions in the European Union by 40% below the 1990 level by 2030. It also proposes to increase the share of renewables in meeting at least 27% of the European Union's energy consumption by 2030. Yesterday Energy Ministers had their first opportunity to consider the Commission's paper and negotiations will be progressed on the framework this year.

Modern industry places a high premium on the availability of water, energy and high quality communications. Taken together with our climate change obligations, the need to ensure a fit-for-purpose transmission grid is essential. The Government approved my proposal to put in place a process, the integrity of which is overseen by an independent panel chaired by a former Supreme Court judge, to progress implementation of elements of Grid 25. No matter how frequently I explain that improvements to the grid are necessary to meet domestic requirements, some wish to conflate it with the examination under way of the potential for green energy exports. Whether the export project happens, the transmission grid will still have to be refurbished. Many times inside and outside the House I have explained that there cannot be a wind energy export project without an intergovernmental agreement and emphasised that there can only be such an agreement if significant economic and employment benefits accrue to Ireland. The Government will not conclude an agreement with the United Kingdom unless we are satisfied with the economic benefits that will redound to Ireland. However, the bottom line is that it is simply misleading to try to persuade people that the need to build out the grid would go away if only wind energy exports were stopped.

Ireland has a landmass of approximately 90,000 sq. km but a sea area approximately ten times that size. Our position on the Atlantic edge of Europe gives us almost unparalleled offshore energy resources. I launched the offshore renewable energy development plan last month. This will facilitate the development of offshore renewable energy projects across three key pillars - environmental sustainability, technical feasibility and commercial viability - by co-ordinating action across relevant Departments. My Department supports ocean energy production through the work of the SEAI in administering the prototype development fund, developing the Atlantic marine energy test site off County Mayo and through its funding of the Integrated Marine Energy Research Centre, a partnership between University College Cork, Cork Institute of Technology and the Naval Service. In total, my Department has allocated €26.3 million for ocean energy projects during the period 2013 to 2016.

Last December I announced the selection of a preferred bidder for Bord Gais Energy. A consortium comprising Centrica pic, Brookfield Renewable Power Inc. and iCON Infrastructure has been selected as the preferred bidder. Its bid values the enterprise at approximately €1.12 billion. Each consortium member brings with it deep industry experience and significant financial strength to support continued investment in the business. The arrival into our energy market of international strategic investors is a strong vote of confidence in the market, the energy economy and the Bord Gais Energy business and its employees. Proceeds from this sale, when they become available later this year, will be used to support stimulus measures in the short term, with 50% to be used in the longer term to retire debt. This will enable investment in new infrastructure and job creation.

The energy policy landscape has changed considerably since the last energy White Paper in 2007. Recognising this, I am preparing a new energy Green Paper, identifying issues that need to be considered in developing energy policy to meet future challenges. Competitiveness, security of supply and sustainability, as well as the potential to support economic growth and job creation, will be the key objectives of the Green Paper which I expect to publish by the middle of this year.

The programme for Government set clear, forward-looking objectives for communications development, focusing on enhancing capacity and speeds and on providing world-class broadband technology in schools. The Government's national broadband plan aims radically to change the broadband landscape by ensuring high speed broadband is available to all citizens and businesses. This will be achieved by providing a policy and regulatory framework that assists in accelerating and incentivising commercial investment, and State-led investment for areas where it is not commercial for the market to invest. Since publication of the plan, significant progress has been made in the commercial deployment of high-speed broadband services. Telecommunications providers are investing in services and coverage that significantly exceed their original targets.

The Government is committed to intervening in areas where there is no case for commercial investment. Progress is being made in defining the scope of this intervention, including a major mapping process to identify the precise areas in which commercial investment will take place and those areas that will not benefit from such investment. These latter areas will be the target for intervention. Next week I will conclude debate on the ESB (Electronic Communications Networks) Bill 2013 which, when enacted, will enable the ESB to use its distribution network to provide high-speed telecommunications services. The potential to use the ESB's considerable network to deploy fibre will contribute significantly to the commercial deployment of high speed broadband.

We made a commitment in the programme for Government to incorporate ICT in teaching and learning across the curriculum. The 100 Mbps connectivity to schools broadband programme is a principal driver in meeting that commitment. The 2012 phase of the project saw broadband installed in all post-primary schools in 14 western and midlands counties, covering 202 schools. In 2013, 234 second-level schools in Dublin, Kildare and Meath were identified for connection to the high speed network. All remaining second level schools, around 269, in counties across the south and south east of the country will have high speed broadband installed by the end of September.

Phase one of the national digital strategy was published in July 2013. It focuses on three strands: citizen engagement, business and digital entrepreneurship, and e-learning. One of the main goals of the strategy is to reduce by half the number of people who are not online by 2016. I introduced a grant scheme to provide digital skills training to people in danger of being left behind, including unemployed people, older people and people with disabilities. The scheme aims to train over 24,000 people. The business strand of the strategy aims to get 10,000 businesses online and a further 2,000 businesses trading online within two years. I have set aside a €5 million fund in 2014 to develop an online trading voucher scheme to help small firms develop an online trading presence.

The programme for Government commits to transforming the existing TV licence into a public service broadcasting charge, to be applied to all occupied households and businesses. The charge will replace the existing TV licence. It will not cost any more than the current TV licence, will be imposed on all eligible households and businesses and will not be dependent on ownership of any particular device. The purpose of public service broadcasting is to provide a full range of services and content catering for all interests in society, giving a platform for the expression of Irish language and culture. Everyone benefits from these services and therefore the cost should be borne by society.

We had the opportunity in this House last week to debate over two nights the future of the post office network. The post office has a unique standing in Irish life and is trusted and highly respected by the people. Apart entirely from its significant economic contribution over the years, the post office network has evolved a social role which is highly valued by local communities. As a shareholder, I have a strong interest in and concern for the future sustainability of the network and the company. This is backed up by the commitment in the programme for Government to ensure the sustainability of the post office network. The Government has agreed to a whole-of-government consideration, encompassing central and local government and the wider public service, of the nature and extent of services that can be provided to the public using the post office network as a front office of Government. This whole-of-government analysis is being undertaken in the first instance by the Cabinet committee on social policy.

I must repeat, however, that An Post is a commercial State company that earns its own keep and receives no Exchequer subsidy. My colleagues and I cannot arrange a hidden subsidy for it by dictating that all or even any Government business is automatically given to An Post. These are commercial contracts that must, under EU and Irish public procurement law, go out to competitive public tender between all interested parties. All stakeholders need to collaborate to achieve our shared objective of securing opportunities for new business and maintaining the post office network at the heart of national and local community life. That means the postmasters, as proprietors of independent commercial enterprises, must also by their own initiative develop an enhanced range of services and contribute to an increase in customer numbers.

Late last year the Government approved the development, roll-out and operation of a national postcode system following conclusion of the public procurement process in 2013. Householders will be informed of their postcodes in 2015, when the system will come into operation. In the meantime the groundwork of designing the code and updating private and public sector databases to accommodate the new postcode system is under way. This is a critical programme of work, which will, when completed, bring significant benefits across a range of areas. It will enable organisations to improve existing services and develop new service offerings. It will deliver improved efficiencies in logistics, including emergency service response. It will act as a strong support for the development of digital applications in the Irish economy and support better planning and analysis capabilities across public and private sectors.

In November 2013 I established an Internet content governance advisory group. This specialist working group, including experts in child safety and online behaviour, as well as technical and industry experts, will consider emerging issues in the area of online content and its general impact on the lives of children and young people. The group will take submissions from the public and interested groups and will report by the end of May. I asked the group to produce specific recommendations on the appropriateness of existing regulatory and legislative frameworks around electronic communications, Internet governance and the sharing of material online and as to the most appropriate relationship between ISPs, online service providers, the State and citizens regarding access to legal material and bullying and harassment online.

Regarding the perennial matter of striking the correct balance between attracting investment and maximising returns to the Exchequer from our natural resources, I am announcing today the selection of international experts to advise on what fiscal terms should apply. Following a public procurement process, international oil and gas expert Wood Mackenzie has been selected to advise on the fitness for purpose of Ireland's current oil and gas fiscal terms. This will ensure regulatory certainty in advance of the next oil and gas exploration licensing round in June this year.

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