Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 3: To ask the Minister for the Environment, Heritage and Local Government the impact on the commercial viability of the Poolbeg waste energy plant, Dublin 4 if recent proposals on a new incinerator levy are enacted; the financial exposure to the taxpayer in the event of breached commercial contracts as a result of the incinerator levy; and if he will make a statement on the matter. [16232/10]

John Gormley (Dublin South East, Green Party)
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I recently launched a public consultation on the application of levies to both landfill and incineration facilities. The approach I am considering will be designed to ensure that material which could otherwise be recycled is not drawn to facilities in lower tiers of the waste hierarchy. 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. The State is not a party to this PPP agreement and has undertaken no financial or other liability in respect of the project.

As I have 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 of course be a matter for those authorities to address.

I have appointed 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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The Department of the Environment, Heritage and Local Government was represented on the PPP steering group for this project. Therefore, the Department was involved with it and it was in line with existing Government policy. In addition, some finance was contributed to the project by the Department. Now that the Department is no longer in consultation on it, has the Minister been in contact with Dublin City Council about the implications of the legislation? Also, will there be a contingent liability on the taxpayer?

What is the current status on mechanical biological treatment plants, MBTPs? In order to meet landfill directives we will need additional MBT plants and we must ensure we meet obligations and requirements under the directive deadlines or we will be exposed to further fines from Europe. What is the plan of action with regard to these plants and where are they?

John Gormley (Dublin South East, Green Party)
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I have had no direct contact with Dublin City Council on the proposed levies. I am aware many local authorities have called for the introduction of landfill levies, as have many people in the industry. It is through the introduction of these levies that we will ensure we get increased rates of recycling. The levies are also a stimulus to the MBT industry. Those in the composting industry, in particular, have called on me to introduce these levies, which make sense because they change behaviour. We must remember when talking about the implementation of the landfill directive, that we are talking about the biodegradable fraction of waste, which when it decomposes causes difficulties such as methane emissions. I had the pleasure recently of turning the sod at an MBT plant in Meath which will deal with over 200,000 tonnes of waste. This is the way to go. We want to increase recycling rates up to 70%. This target is part of the international review we commissioned, which was very clear that if we want to change waste management structure and behaviour, we must introduce levies.

The new food regulations which will come into play at the end of June will make a big difference and will mean that how we treat food waste from our restaurants and hotels, which currently goes to landfill where it causes difficulties, will change. If current practice continued, it would be difficult to meet the landfill directive requirements. This change will encourage those in the MBT and composting industries. This is the direction we want to take to get away from reliance on landfill and large scale incineration.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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What is the current status on the construction of the incinerator at Poolbeg? When will the report of the authorised officer commissioned by the Minister be available?

John Gormley (Dublin South East, Green Party)
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There was a hiatus over Easter when the individual in question, Mr. Hennessy, could not do his work. He has now returned and I hope he will continue with his work. He will meet one of my Department's officials next week. I hope he will complete his report as quickly as possible, within the next month or so. That will give us a clear indication of the potential liability for Dublin City Council. Given the changing environment and the fact we are changing policy - we have made it clear the commitments in the programme for Government now constitute Government policy - it would be most unwise for Dublin City Council and the proposed operators to continue down this path and not take account of changing Government policy. That is what this Government is about and that is my commitment.

Charlie O'Connor (Dublin South West, Fianna Fail)
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Before he responds on Question No. 4, I take this opportunity to wish the Minister of State, Deputy Cuffe, well and to congratulate him on his appointment.