Dáil debates

Wednesday, 25 November 2009

1:00 pm

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 37: To ask the Minister for Communications, Energy and Natural Resources the action he will take to combat fuel poverty in winter 2009; the number of persons who live in fuel poverty here; the number of homes which were part of the warmer homes scheme for 2008 and to date in 2009; when he will publish the findings of the fuel poverty action research project; when this was first due for publication; and if he will make a statement on the matter. [43550/09]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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The Government is committed to protecting vulnerable households from the impact of energy costs through a combination of institutional supports, programmes to improve the energy efficiency of the housing stock and energy efficiency awareness initiatives.

I am working closely with the Minister for Social and Family Affairs and the Minister for the Environment, Heritage and Local Government to ensure a fully cohesive approach across Government to energy affordability. The interdepartmental-agency group led by my Department and the Department of Social and Family Affairs is drawing up an affordable energy strategy in line with the renewed programme for Government. The strategy will set out existing and future plans to tackle energy affordability. It is the intention to publish the strategy for public consultation before the end of the year.

The warmer homes scheme is administered by Sustainable Energy Ireland. The scheme is the primary mechanism for alleviating the key underlying cause of fuel poverty, namely, thermal inefficiency of houses. Some €20 million has been provided for the scheme in 2009, which includes €5 million provided by the ESB and Bord Gáis Éireann.

This level of funding is enabling structural improvements in at least 15,000 vulnerable homes by the end of 2009. This includes 2,000 homes benefiting from the ESB's home insulation scheme which operates alongside the warmer home scheme. The very significant upscaling of the scheme this year underlines the Government's commitment to addressing energy affordability. Some 5,343 homes were retrofitted under the warmer homes scheme in 2008. So far this year, 14,248 homes have benefited under the scheme.

The most recent research figures available on the numbers at risk of fuel poverty are set out in the national energy efficiency action plan. It reflects the analysis published in November 2008 by the Economic and Social Research Institute on fuel poverty in Ireland. The ESRI uses various methods for calculating the extent of fuel poverty. These include the expenditure method or share of income spent on fuels and the subjective assessment by occupants.

The ESRI estimates that using the expenditure method, 300,000 or 19.4% of Irish households may have experienced fuel poverty in 2008 at a time of particularly Irish energy prices. Using the subjective method, 68,000 or 4.6% of households reported that they could not afford to heat their homes adequately in 2006. Enhancing the energy efficiency of homes through structural improvements is pivotal to the Government's strategy to address energy affordability.

The fuel poverty action research project was established by Combat Poverty and Sustainable Energy Ireland. The project was an ex post assessment of the energy, environmental, thermal comfort and health benefits of the warmer homes scheme.

The report was initially scheduled to be completed in 2008 but its completion was delayed due to the loss of key data. A draft report was circulated in August to members of the research community for comment. Publication of the final report, which has recovered the relevant data, is expected before next month.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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I thank the Minister for the reply, although I am disappointed to say it was very similar to one I received to a previous parliamentary question. Will he confirm that essentially what he said was that he does not know how many people live in fuel poverty and that the research report and his strategy have not been published? He has nothing new to tell us even though the situation in terms of overall poverty is very serious. Despite the fact that there has been enormous economic growth in recent years, we have one of the highest excess mortality rates in Europe.

The Minister has no clear strategy in place to which we can refer and support, as we would like to do, to deal with fuel poverty once and for all, especially at a time when so many people who are out of work have skills in the construction trade. It is important that he gives us some idea as to his approach. He must be aware that the warmer home scheme does not relate to social housing which is the largest area where people are living in fuel poverty.

We now have the added experience of flooding. Inevitably, people's whose property has been flooded will have much greater energy bills as a result of dealing with the effects of flooding. What strategy will be in place for them?

Will the Minister clarify that Government policy and not Green Party policy in regard to carbon tax is to ring fence the money accruing in order to provide for greater energy efficiency?

3:00 pm

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I am reporting good news. The warmer home scheme has been ramped up. When I came into office more than two years ago, approximately 2,000 homes were being done but now approximately 15,000 homes are being done. It is targeting those most at risk, in particular older people who we need to keep warm in winter. It makes a transformational difference to houses if the proper insulation is put in. Some 15,000 homes are being done per year which has a significant effect.

The Minister for the Environment, Heritage and Local Government had a budget of €20 million to target social housing, which needed to be targeted. On a house by house basis, the energy performance of social housing is being improved. That is in addition to the increase we were able to give in very difficult budgetary times in the fuel allowance by extending the weeks to which it applies and increasing the amount. We have taken various measures in the past year which have real effect and are keeping people warm and alive.

We need, however, to go further. This is the best investment we can make in terms of preparing us for future higher energy prices and to help cut down our emissions. With the Ministers for the Environment, Heritage and Local Government and Education and Science, who has invested similarly in insulation schemes, we are looking to continue that investment and to extend it further as part of an integrated fuel poverty strategy. That will have particular relevance as carbon tax is introduced, although I cannot go into the budget details in advance of 9 December. The scale of the investment we are making was brought home to me recently. The packages introduced by my Department and the Departments of Education and Science and Environment, Heritage and Local Government in last year's budget were the equivalent of more than €100 million. The American stimulus plan is the equivalent of approximately €400 million in the same area. At least our ambition and spend in that area is of a scale that matches anything that has been done in other countries. However, it is not ambitious enough and we have to extend and expand it, particularly in the area of social housing where people are more vulnerable.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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The Minister, Deputy Gormley, has no problem commenting on this area. A recent headline states "Gormley insists carbon levy in budget will be revenue neutral". The Minister might explain how the Minister, Deputy Gormley, can speak out but he cannot. He might clarify the position because there is a great deal of confusion.

On social housing, will the Minister accept that it is not good enough to wait for casual vacancies to arise? The number of casual vacancies that arise are rare now because very few houses are being built and people cannot afford to move out of social housing. The Minister has to think of a new approach. External insulation is an obvious one, but there are probably other arrangements. The problem will not be dealt on the basis of waiting for casual vacancies to arise.

Will there be targets in this strategy that will address the problem in this area? It is all very well to have 1,500 houses, but fuel poverty will not be dealt with unless the scale is ramped up considerably. Will there be a timeframe for the implementation of the strategy or will it simply amount to aspirational proposals, which we have read about and heard previously from the Minister, which no longer meet the needs in this area, as more and more people struggle?

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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The provision of 1,500 houses represents action rather than aspirations. I agree with the Deputy that in terms of social housing, we have to consider some of the technologies we have developed. In the home energy scheme we have introduced the exterior insulation for particular support. I agree with the Deputy that such technology can be of particular use in regard to social housing. It can be applied to an apartment building and result in a significant reduction in energy use of the building without the need to disrupt the internal workings of the building or to require people to leave their homes. I agree with her that this is an area where we should ramp up our work and in which we should invest, having learned from the experience we have gained in recent years.