John O'Mahony (Mayo, Fine Gael) | Oireachtas source

I welcome the fact that the Report on the Regulation and Inspection of Gas Installers Operating in Ireland, which our committee published in July, is being debated this morning. I thank the Minister for attending to hear this debate and I acknowledge that he has just arrived back from a Council of Ministers meeting in Brussels.

As Chairman of the Joint Committee on Transport and Communications, I am glad to outline the reasons we undertook the body of work. I will summarise the presentations of the main stakeholders and the rationale for the recommendations we made on the conclusion of our research and investigations. I thank my colleagues Deputy Michael Moynihan and Deputy Michael Colreavy, who were also on the working group. As we all know, committees operate on a cross-party basis.

The main purpose of this report is to consider the current system for the regulation, monitoring and inspection of installers of gas boilers. The committee members and I became aware, through representations, that although there is regulation, there is evidence to suggest that some individuals presenting themselves as gas installers are operating outside the law. Therefore, the committee formed the view that this matter warranted serious consideration. Owing to the strong potential for fatal accidents with a fuel as combustible as gas, we became very conscious of the dangers inherent in poor gas installation and servicing. We recall the high-profile tragic death in Kinsale a few years ago that resulted from carbon monoxide poisoning following a gas leak. I spoke to members of the bereaved family and noted that they wanted to see action in this area. It would be some consolation on their tragic loss.

One of the main stakeholders that made presentations to us was the Association of Plumbing & Heating Contractors Ireland, APHCI, which outlined its growing concerns regarding the industry. It believes that lives are at risk because of the failure of the regulatory system. The problem it sees is that the Register of Gas Installers of Ireland, RGII, polices and scrutinises those installers who are registered but does not proactively seek out or flush out the illegal operators. That is the kernel of the problem. The APHCI contends that some 100,000 illegal boilers have been installed up to the publication of our report in July of this year since the current regulatory system was introduced in Ireland in June 2009. It believes the market is awash with illegal operators and that there is a loss of revenue to the State as a consequence, in addition to the danger of explosions and all that follows, including death. The association contends legitimate operators are being driven out of the business. It claimed that approximately 30,000 gas boilers are sold in the State each year but only 12,000 are certified. Obviously, there is a problem. On 13 February 2015, the number of registered gas installers in the Republic was 2,775. By comparison, the number in Northern Ireland was 2,000. Since the Republic is much larger, there is a problem. The implication is that there are many illegal operators in the Republic. The Commission for Energy Regulation, CER, stated in 2009 that there were 4,984 gas installers at that time. Over 2,000 did not register, which tells its own story.

Under legislation, the APHCI noted that CER has responsibility for putting in place what is supposed to be a comprehensive system of safety. In June 2009, it set up RGII, whose remit is to regulate registered gas installers. With regard to the investigation of complaints made to it, it is not responsible for identifying illegal work or installers. This is a fundamental flaw in the system, according to the APHCI. It believes that no one takes responsibility for proactively identifying illegal works and operators. The system is not like that in Northern Ireland, where the inspector actively seeks to identify people who are carrying out illegal works. Therein lies the difference.

According to the APHCI, CER acknowledged that there was a problem in 2014 and that action was needed. However, the association contends that nothing has happened. The CER, whose viewpoint I want to outline, contends the regulatory system is working effectively. However, there is obviously disagreement. The association says there are few prosecutions and that fines range only from €250 to €500. In many cases, the Probation Act is applied.

The CER, which also made a presentation to us, highlighted a number of points. First, the gas installers who are on the register are on it because they have been deemed competent to be on it. They are insured and subject to audit and inspection by the RGII. That is the assurance gas users can take from using a registered gas installer. Nevertheless, the CER operates on the basis of continuous improvement and reviews. The schemes it runs are subject to continual review in order to determine where improvements can be made.

A key building block of the scheme, according to a representative of the CER, is its reliance on the public to act as the police, as it were, on the ground. It is important for the success of the scheme that the general public be made aware of why it is in place, its benefits and what people can do to protect their families and homes. The CER, in conjunction with RGII and other stakeholders, participates in several publicity campaigns on a yearly basis. These are designed to focus on the key message, which it tries to get across to the general public in an accessible manner. Essentially, the message is to use a registered gas installer to carry out work at home, as it is a legal requirement.

It also advertises through public engagement how people can contact it if they suspect work has been carried out in their home which is substandard or carried out by unregistered workers. Whenever it has a successful prosecution, it will advertise that fact as it will act as a further deterrent against illegal activities.

The recommendations speak for themselves. All the members of the working group and all the members in the committee were unanimously on Recommendation A. Recommendation A states:

It is clear from the evidence presented to the Committee that, despite the regulatory regime in place in Ireland since 2009 requiring the registration of gas boiler installers, illegal activity continues to take place and many boilers are being installed by individuals operating outside of the law. However, there was no consensus amongst the stakeholders as to the extent of the problem, and there are considerable shortcomings in terms of knowledge in this area. The Joint Committee therefore recommends that an independent expert or consultant be appointed to conduct a thorough investigation of this sector in order to arrive at a truer picture of the extent of illegal activity taking place. Part of this individual's remit could also be to make recommendations as to how best to address problems identified in his or her findings, in light of international best practice.

The second recommendation states:

The Joint Committee recommends that consideration be given to a legislative change providing that gas boilers only be sold to registered gas installers, or to consumers who provide evidence of having engaged a registered individual to carry out the necessary installation. A legislative requirement might also be considered in order to make it mandatory for merchants to publicly display material at points of sale to reinforce the message to the public of the benefits of using a registered gas installer.

In my opinion, if that were to happen, it would eliminate the problem at source. The third recommendation states:

The Joint Committee would urge Insurance Ireland to engage with the Commission for Energy Regulation in relation to the APHCI suggestion that the provision of home insurance be made conditional upon persons seeking insurance cover providing evidence, where applicable, of gas boilers being installed and serviced by registered gas installers.

The next recommendation states:

The current scheme for the registration of gas installers deals only with the competence of those installing in domestic settings and does not require individuals to be registered in the case of commercial premises.

At our launch of the report, a spokesperson for the Commission for Energy Regulation stated it was already taking in hand that recommendation. I am not sure what progress has been made on that since. The recommendation continues:

The Joint Committee is of the view that the Registered Gas Installer Scheme ought to be extended to include Non-Domestic Gas Works.

The last recommendation states:

The cost of subscriptions payable by APHCI members to the RGII at €175 (€50 for a trainee) per annum should be reviewed to establish if it is an impediment to illegal installers registering. The cost of certificates for the servicing of appliances (type 3), boiler replacement (type 2) and new boiler fit (type 1) should also be reviewed to ensure they are equitable, while the wording on the certificates might be improved.

This report was launched in July last and in my concluding remarks later, I will provide an update of what has and has not happened since.

See this speech in context