Liz McManus (Wicklow, Labour)
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Question 2: To ask the Minister for Communications, Energy and Natural Resources the reason he has significantly reduced the grants available to homeowners for renewable heating systems under the proposed phase 2 of the greener homes scheme; the number of applicants who obtained grants under phase 1 of the scheme; the number of applicants on the waiting list for grants; the amount in total he proposes to be allocated for phase 2 of the greener homes scheme; the location where the money is being diverted from to pay for it; when this scheme will be implemented; the reason there will be a significant time lapse between phase 1 and phase 2 of the grant schemes; and if he will make a statement on the matter. [23254/07]

Eamon Ryan (Dublin South, Green Party)
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The objective of the greener homes scheme is to stimulate consumer investment in renewable heating solutions and to develop the market for renewable energy technologies, thereby reducing CO2 emissions in the domestic sector.

Over 16,000 grants were approved under phase 1, which ran from April 2006 to August 2007. There is no waiting list. Some 6,600 of these applicants have completed installations and have received grant payments. A further 1,800 payment requests are being processed by Sustainable Energy Ireland. Over 8,000 applicants have received grant approval but have not yet requested grant payment.

Since the scheme was launched there has been a dramatic increase in renewable technology suppliers and a tenfold expansion in the number of renewable energy products available on the market. This clearly demonstrates the very significant level of market development since the scheme was first launched.

The first phase of the scheme has achieved all of its objectives speedily and within the overall budget. Consequently, the grant levels are being reduced for some technologies where it is clear that the market has reached a level of maturity to allow it to continue at a lower rate of support.

Other grant levels remain unchanged. Phase 1 of the greener homes scheme was concluded on Monday, 3 September. There was a pause of 28 days ahead of phase 2 being opened on 1 October. The pause of 28 days was required to allow space to process the remaining applications from phase 1 and to put in place all relevant administrative procedures, structures and details of the phase 2 scheme.

The objective in greener homes phase 2 is to consolidate the market, underpinning it with quality standards and training and providing for a long-term future that is not grant-dependent. The aim is to ensure that the market for these products, services and fuels continues to develop strongly, allowing suppliers and installers to consolidate their market offerings ahead of an unsubsidised market. It will also bridge the gap between the ending of phase 1 and the introduction of new building regulations which will further stimulate market uptake.

The new building regulations announced recently by my colleague, the Minister for the Environment, Heritage and Local Government, Deputy John Gormley, will mandate the use of renewable heating systems in all new buildings which will provide a fundamental boost to these technologies.

John O'Donoghue (Kerry South, Ceann Comhairle)
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The time for answering the question has expired.

Liz McManus (Wicklow, Labour)
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I wish the Minister well. He will find there will be times when he gets more support on this side of the House than the Government side.

The Minister has made a bad start. The greener homes grant scheme, which the Minister described on 11 October 2006 as a drop in the ocean, has run into the sand because the money has run out. He now proposes a much lower grant scheme for what is a relatively costly business for many people, namely, changing to renewable energy products from traditional sources. It is very hard to understand how the Minister can justify slashing grants as he is doing and I ask him to comment. How much money has been allocated for phase 2 and where is it coming from?

Eamon Ryan (Dublin South, Green Party)
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I thank Deputy McManus. I look forward to working with her and to getting support from all sides of the House in the important work we have to do.

I have indicated to the Deputy that we will require a Supplementary Estimate for a transfer budget in my Department because the committees, where such work would normally be carried out, have not yet been established. I understand we may have to do it in the Dáil sometime next week. We will then have a chance for a further debate on the details of the revised scheme and the reasons for any changes.

Liz McManus (Wicklow, Labour)
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That is not good enough. I ask the Minister not to flimflam me. I asked him how much money would be allocated for this scheme. It all depends on money. The scheme that was in place ran into the sand because it did not have enough money. How much money will be allocated for this one?

Eamon Ryan (Dublin South, Green Party)
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I have said a Supplementary Estimate is being prepared and will be brought before the Dáil next week. It will set out in exact detail how much money will be needed.

Liz McManus (Wicklow, Labour)
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Is this supposed to represent transparency and accountability?

Eamon Ryan (Dublin South, Green Party)
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Yes. We will be accountable——

Liz McManus (Wicklow, Labour)
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The scheme collapsed in August. The Minister is not willing to tell the House——

Eamon Ryan (Dublin South, Green Party)
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We will——

Liz McManus (Wicklow, Labour)
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Does the Minister want to have a press conference outside the House? Is that why he is not giving us the details?

Eamon Ryan (Dublin South, Green Party)
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No, I intend to bring a Supplementary Estimate to the Dáil, which is the appropriate forum for this matter to be discussed, next week.

Liz McManus (Wicklow, Labour)
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The Minister knows how much this will cost. He knows how much money will be allocated, but he will not tell the Dáil now.

Eamon Ryan (Dublin South, Green Party)
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I can give the Deputy the rough amount now. There will be additional expenditure of between €15 million and €17 million this year. We will wait until the actual Supplementary Estimate for the exact figures.

Liz McManus (Wicklow, Labour)
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Where is that coming from?

Eamon Ryan (Dublin South, Green Party)
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It will come internally from within the Department. I would prefer to wait for the proper occasion — next week's debate on the Supplementary Estimate — before I make a decision on the matter. We could have a debate on the Supplementary Estimate now, but we would not have time for any of the other Priority Questions.

Liz McManus (Wicklow, Labour)
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There is no need for a debate. I want the Minister to answer my questions.

Eamon Ryan (Dublin South, Green Party)
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I am trying to answer them. Given that the solar energy grant, for example, is being maintained at the exact same level, I do not accept the Deputy's contention that we are slashing the scheme. Many of the heating grant levels are staying the exact same. Reductions are being made in other areas because market technology has reached a certain maturity. I am sure the Deputy supports other schemes within the budgetary context which also need funding. As Minister, the prudent thing for me to do is to allocate my budget appropriately.

The Deputy referred to my comments about the scheme in October last year, when I said the green homes scheme was "a drop in the ocean". She may have noted that I also said, if I recall correctly, that the then Minister should do exactly what I am doing now, which is to move to a regulatory approach where all new buildings will be required to have these heating systems. I asked the then Minister to do this, but I did not get an answer. That is what we are actually starting to do now. The purpose of the grants is to try to undo the damage caused by 100 years of an oil and gas-fired industry supply chain by moving towards a renewables-fired supply chain. We need to oblige people to use it.

Liz McManus (Wicklow, Labour)
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We will return to this one.