Simon Coveney (Cork South Central, Fine Gael)
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Question 78: To ask the Minister for Communications, Energy and Natural Resources the amount of the €26 million package announced in January 2008 in respect of ocean energy programmes which has been spent; the reason promised grant aid to companies has not been awarded; the further reason applications for grant aid were only sought as recently as November 2008; and if he will make a statement on the matter. [4856/09]

Eamon Ryan (Dublin South, Green Party)
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Approximately €1 million was spent on the ocean energy programme in 2008. The grant aid programme for companies is one element of a wide-ranging suite of initiatives intended to accelerate and strengthen the development of ocean energy technologies in Ireland. These are managed by the ocean energy development unit, which is located at Sustainable Energy Ireland, SEI.

The ocean energy grant aid programme for industry was launched publicly in August last. Responses were processed during September and October and full applications were sought during November. Agreement on funding levels in accordance with EU State aid rules is now being finalised and the first contracts will be issued in a matter of weeks. I am advised that the pace of expenditure will accelerate, increasing to around €7 million in 2009. This will contribute to the delivery of the Government's high priority goal of supporting the development of Ireland's ocean energy potential in a reasonable timeframe.

The ocean energy development unit was established last year within SEI. The unit manages the ocean energy strategy and administers the substantial funding provided for the benefit of researchers and project developers. The unit commenced the grant aid programme in its first year. It has also invested in the creation of a state-of-the-art national ocean energy facility at University College Cork, which work will continue into 2009. It is also managing the development of a grid-connected wave energy test site off the west coast. In addition, in the same period, the unit has established an advisory group comprising my Department, the Commission for Energy Regulation, the coastal zone management division, Enterprise Ireland, EirGrid, ESB Networks, IDA Ireland, the Marine Institute and Science Foundation Ireland to co-ordinate the activities of these agencies in developing and delivering an efficient roadmap for ocean energy. The unit has also commenced work on the delivery of studies of common interest to the sector, including a study on the engineering and specialist support requirements for the sector to enhance Ireland's capability to maximise participation in the construction and operation of wave and tidal systems; a review of the planning regime for ocean energy development; a strategic environmental assessment for ocean energy in Irish waters; an investigation of partnership with industry for data gathering and processing; and a detailed review of the macro-economic benefits that ocean energy can deliver for Ireland.

The delays in launching the grant aid programme have not diverted us from the ten-year development plan set out in our ocean energy strategy. These technologies are very much at research and development phases, and devices are using different approaches to try to generate electricity from the ocean. The ocean energy unit is working closely with developers to develop and finalise their project applications. I am satisfied that all components of the ocean energy package are now under way and are being advanced at a pace consistent with the priority the Government attaches to this area. I am confident this programme will greatly assist in realising Ireland's huge potential in this area and will allow us to meet the Government's target of generating 500 MW of ocean energy by 2020.

Simon Coveney (Cork South Central, Fine Gael)
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I thank the Minister for his reply. It was on 15 January 2008 that the Minister announced this initiative. He announced that €1 million would be spent on a world class, state-of-the-art national ocean energy facility at UCC in 2008, that €2 million would be spent in 2008 to support and develop a grid-connected wave energy site near Belmullet, and that €2 million in grant aid would be provided in 2008 under the ocean energy prototype fund for developers of this type of technology. How much of that €5 million was actually spent last year?

Eamon Ryan (Dublin South, Green Party)
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As already stated, approximately €1 million. Everyone would like to see all the money being spent. The primary reason it was not was the delay in setting up the ocean energy unit. This is a ten-year timeframe that was set out about three years ago in our ocean energy strategy. It was set out in four quarters, with the first quarter to be reviewed at the end of 2007. It was on that basis that we decided we would move to the next phase, just prior to commercialisation, in January. Crucial in this was the setting up of the ocean energy unit, and while I regret the delay, I feel we have set up the unit with the right people. This is a crucial development which will allow us to spend money this year and catch up. We need to catch up because this is an area in which there is major potential. While I regret the delay in setting up the unit and the consequent inability to spend the various budgets, I believe we have got the unit and the strategy right, and the money will be spent this year or next to allow us to catch up.

Simon Coveney (Cork South Central, Fine Gael)
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Can I confirm that the Minister is saying that because only €1 million was spent out of the €26 million fund last year due to delays, which may be understandable, we are spending €7 million in 2009 on this initiative? My understanding is that in 2010 we will be spending the remaining €18 million on funding ocean energy projects. Is that correct?

Eamon Ryan (Dublin South, Green Party)
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There will be no shortage in budget availability to meet the needs we have.

Simon Coveney (Cork South Central, Fine Gael)
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They are specific questions.

Eamon Ryan (Dublin South, Green Party)
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I am not going to forecast next year's budget, but the Government attaches the highest priority to this area and will not be found wanting when it comes to budget allocation.

Simon Coveney (Cork South Central, Fine Gael)
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The Minister announced that €26 million would be spent. Will it be spent?

Eamon Ryan (Dublin South, Green Party)
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It is not all about budget.

Simon Coveney (Cork South Central, Fine Gael)
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The Minister is all about announcements and not delivery. That is the problem.

Eamon Ryan (Dublin South, Green Party)
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It is not all about figures.

Simon Coveney (Cork South Central, Fine Gael)
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The Minister should say that to the companies.

Eamon Ryan (Dublin South, Green Party)
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One of the valuable things that has been done is the work of the Oireachtas Joint Committee on Communications, Energy and Natural Resources in examining the need for us to develop our ocean planning strategy, so we could get that right. It is probably the first and most crucial hurdle we need to overcome in the first half of this year so that companies that are investing significant moneys have real confidence in the planning system. Budgets are important, but——

Simon Coveney (Cork South Central, Fine Gael)
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Is the Minister committing a budget of €26 million over the next two years?

Eamon Ryan (Dublin South, Green Party)
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I am committing on behalf of the Government to giving this area the highest priority and to making the necessary funding available to deliver on the strategy we have set out.

Simon Coveney (Cork South Central, Fine Gael)
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I am sorry, but that is the usual bluff.

P J Sheehan (Cork South West, Fine Gael)
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All commitments and no figures.