Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 5: To ask the Minister for the Environment, Heritage and Local Government the financial liability of the taxpayer in the event of a breach of contract regarding the construction and operation of the Poolbeg waste to energy facility, Dublin; and if he will make a statement on the matter. [2948/10]

John Gormley (Dublin South East, Green Party)
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The facility in question is being advanced by Dublin City Council, acting on behalf of the four Dublin local authorities in the context of their statutory regional waste management plan, by way of a public private partnership, PPP. The State is not a party to this PPP agreement and has undertaken no financial or other liability in respect of this project.

As I previously indicated, it is my understanding that the quantities of residual waste currently being collected by the Dublin local authorities may not be sufficient to meet the volumetric contractual commitment which forms part of the public private partnership agreement. Any inability on the part of the authorities to meet this commitment could give rise to public financial implications which would be a matter for those authorities to address. My concern in this regard is linked to my determination to ensure that the pathway to economic recovery on which we are now embarked does not lead to a business as usual approach to waste generation or to the management of the waste which might result from increased consumption. Rather, I am determined to secure significant decoupling of waste arising from future growth and, to that end, I will bring proposals to Government to implement key recommendations of the international review of waste management policy published in November 2009.

In these circumstances, I have decided that the most appropriate course of action is to appoint an authorised person under section 224 of the Local Government Act 2001 to conduct a review of the parameters of the project. This will address the nature and extent of financial and related risks and consequences which may arise for Dublin City Council in connection with its participation in the project agreement, in a changing policy, legal and economic environment.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Has Government policy on waste changed since 2007 and, if so, in what way? I refer to a Government decision rather than ministerial statements. Has the Minister the power to prevent the arrangement between Dublin City Council and Covanta in respect of the Poolbeg incinerator from proceeding?

John Gormley (Dublin South East, Green Party)
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It is clear that Government policy in this area has changed in many aspects. I have introduced various regulations including, for example, provision to ensure that we increase the amount of waste collected from food outlets. That regulation will be enacted in June. We have clearly stated that incineration will no longer be the cornerstone of policy.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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What is the position now?

John Gormley (Dublin South East, Green Party)
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I am saying clearly that incineration is not the cornerstone of waste policy.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Is that a Government decision?

John Gormley (Dublin South East, Green Party)
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Of course. How many times do I have to say it?

In regard to the project in question, I said in my reply that it has been put forward by Dublin County Council. It may be embarrassing for Deputy Hogan to be reminded that it was his party's councillors who voted for the proposal to be included as part of the waste plan.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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When will the Minister put a stop it?

John Gormley (Dublin South East, Green Party)
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They were told at the time by my colleagues on Dublin City Council that this would invariably lead to the project going ahead, but they ignored that advice and voted in favour in any case.

Terence Flanagan (Dublin North East, Fine Gael)
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The Minister could stop it now.

John Gormley (Dublin South East, Green Party)
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It is important that people understand this facility has a capacity of some 600,000 tonnes and, as such, will have a major impact on the waste market. The judgment before Christmas by Mr. Justice McKechnie was in line with the contention of the waste industry, namely, that the facility should be reduced in size and that it will have the effect of being anti-competitive. The authorised officer who will look at the contract will be in the best position to make a judgment regarding all the various aspects of the case.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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When will the authorised officer be appointed and when will that person report? Will he or she underwrite any particular costs or breaches of contract on behalf of the taxpayer if he or she is serious about stopping this project?

John Gormley (Dublin South East, Green Party)
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I hope to meet the proposed authorised officer this week, after which that person should be in a position to commence work very quickly. We will have to examine how long it will take to complete the task but I hope it can be done as quickly as possible. I will report back to the Oireachtas as soon as the authorised officer reports to me. It is vital that we engage in this process in order to avoid at all costs a situation where there is a significant contingent liability on the taxpayer.