Simon Coveney (Cork South Central, Fine Gael)
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Question 55: To ask the Minister for Communications, Energy and Natural Resources the money allocated in budget 2008 to the greener homes scheme and to other conservation schemes for homes and businesses; the level of demand for the schemes in 2007; the level of demand he anticipates in 2008; and if he will make a statement on the matter. [35784/07]

Eamon Ryan (Dublin South, Green Party)
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The energy conservation capital grant-in-aid to Sustainable Energy Ireland, SEI, in 2008 is €63 million. Within that envelope, the allocation for the greener homes scheme in 2008 is €28 million. Some €35 million is being allocated across the range of energy efficiency and renewable energy programmes managed by Sustainable Energy Ireland, including €5 million for the new home energy savings scheme and €2 million for the energy efficiency advisory programme for small and medium enterprises.

I am advised by SEI that analysis is under way on the level of demand across all programmes and schemes in 2007. In the case of the greener homes scheme, more than 9,000 definitive grant offers were made in 2007 and total expenditure under the scheme this year will be €28.2 million.

As the Deputy is aware, demand under the greener homes scheme has been exponential and continues strongly with 1,900 applications received to date — under phase 2 of the scheme. I fully expect the demand for the programmes and services of SEI to continue to grow in 2008 and continue into the future.

Simon Coveney (Cork South Central, Fine Gael)
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We are back to an issue which caused controversy last year when we did not have sufficient levels of capital set aside for phase one of the demand-led greener homes scheme. At the time, I was extremely unhappy, as were others in Opposition, that to bail out Sustainable Energy Ireland and ensure the bills committed to the greener homes scheme would be paid the Minister needed to find money from other areas within his Department such as broadband schemes and a research budget.

At the time, the Opposition clearly stated it did not want this mistake to be made the following year. Here we see less money allocated for 2008 than was spent in 2007 for a scheme which continues to grow and is becoming more popular among house owners and home-makers according to Sustainable Energy Ireland.

Last year we got it wrong in a major way and had to reallocate approximately 40% extra to pay the bills for the greener homes scheme. It is still a demand-led scheme which does not have a cap. Is the Minister satisfied that next August we will not have to find money from other areas in the Department to bail out Sustainable Energy Ireland for a second time in what is a successful, attractive and sensible scheme for making houses more energy efficient? I am concerned that we have not allocated enough money. The allocation for 2008 represents a cut from 2007.

Eamon Ryan (Dublin South, Green Party)
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To clarify, the amount spent this year is approximately €28 and the amount allocated for next year is €28 million. One can hardly call this a cut.

Noel Coonan (Tipperary North, Fine Gael)
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No progress.

Eamon Ryan (Dublin South, Green Party)
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This scheme will continue to evolve. Deputy Coveney is correct to state it is a demand-led scheme. Because of the nature of demand-led schemes, it is difficult to forecast and be accurate on what will be the demand from the public. This is true not only with regard to the number of applications but also the number which feed through to contracts being signed and work being undertaken. Both of these variables varied and we had to secure additional funding for the scheme. I was happy to do so in the manner I did because it was orderly and feasible as my Department has unspent allocations which could be transferred.

Considering the overall picture for the SEI and the various schemes it has, if I recall correctly, the original budget allocation in 2007 was approximately €31 million. Next year, the allocation will be €63 million, which more than doubles the figure.

Simon Coveney (Cork South Central, Fine Gael)
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I am discussing the greener homes scheme which is the flagship.

Eamon Ryan (Dublin South, Green Party)
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One must take into account that the SEI has numerous schemes, all of which have significant benefits. It is appropriate for us——

Simon Coveney (Cork South Central, Fine Gael)
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There is not enough money.

Eamon Ryan (Dublin South, Green Party)
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When the funding is doubled from one year to the next——

Simon Coveney (Cork South Central, Fine Gael)
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The funding has not been doubled.

Eamon Ryan (Dublin South, Green Party)
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I have doubled the funding.

Simon Coveney (Cork South Central, Fine Gael)
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We have not doubled the funding.

Eamon Ryan (Dublin South, Green Party)
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The SEI's funding has doubled. When this can be done at a time when budgetary circumstances are tight it shows the importance the Government attaches to this area.

I intend to evolve the greener homes scheme in terms of introducing new technologies and, as we did this year, reducing grants where appropriate such as when schemes achieve their ambitions, including establishing a volume of business in new technology areas so economies of scale apply. It is not our job to continue forever and a day to grant aid particular technologies. It is our job to establish those market areas and move on to other areas which need to evolve.

As we move to implementing the much higher building standards we were able to introduce in Government——

Simon Coveney (Cork South Central, Fine Gael)
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Will the Minister answer the question?

Eamon Ryan (Dublin South, Green Party)
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——which have a requirement for renewable heating systems in new buildings it will allow us to further adapt the scheme to target it at existing rather than new houses.

Jack Wall (Kildare South, Labour)
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Deputy Coveney may ask a short supplementary question.

Simon Coveney (Cork South Central, Fine Gael)
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I wish to correct the record. The facts are that the budget allocation under the heading of energy conservation grant-in-aid, which I understand includes Sustainable Energy Ireland's capital funding, will increase from €54 million last year to €63 million this year.

Jack Wall (Kildare South, Labour)
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Deputy Coveney must ask a question.

Simon Coveney (Cork South Central, Fine Gael)
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Will the Minister accept figures from Sustainable Energy Ireland which inform me that next year it has an allocation of €26 million and not €28 million? Will the Minister accept he previously stated the greener homes scheme cost the State approximately €30 million and not €28 million in 2007? I am slow to accuse the Minister of massaging the figures to hide an effective cut in the greener homes scheme.

Jack Wall (Kildare South, Labour)
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Deputy Coveney must ask a question.

Simon Coveney (Cork South Central, Fine Gael)
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However, this is what the figures tell us.

Eamon Ryan (Dublin South, Green Party)
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No cuts have been made but we have a continuation of the greener homes scheme in phase two which remains popular and will continue to draw down funds. It will continue to evolve——

Simon Coveney (Cork South Central, Fine Gael)
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Does the Minister state that the SEI has €28 million and not €26 million for next year?

Eamon Ryan (Dublin South, Green Party)
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——as market conditions apply. The greener homes scheme budget is €28 million. This scheme will continue to evolve and change——

Simon Coveney (Cork South Central, Fine Gael)
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It has €2 million more than it believes it has.

Eamon Ryan (Dublin South, Green Party)
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——as it is appropriate for us to manage various programmes.

Jack Wall (Kildare South, Labour)
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I remind Deputies that they eat into their own time when they make long speeches.