Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Question 46: To ask the Minister for Communications; Energy and Natural Resources his role in the promised programme to tackle fuel poverty; and if he will make a statement on the matter. [37638/11]

Pat Rabbitte (Dublin South West, Labour)
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As Deputy Martin Ferris will be aware, I published the affordable energy strategy, which meets our commitment in the programme for Government, at the weekend. This strategy will be the framework for building upon the many measures already in place to protect households at risk from the effects of energy poverty. These include the thermal efficiency-based measures delivered through the better energy-warmer homes programme. I am convinced, and the available research confirms the fact, that providing energy efficiency improvements to homes in, or at risk of, energy poverty, results in benefits to recipients in terms of energy affordability, tangible health improvements and overall well-being. This will be my guiding policy philosophy in implementing the 48 actions identified in the strategy. We have identified five priority measures including a commitment to review the national fuel scheme in the context of examining the feasibility of aligning income supports with the energy efficiency and income of the home, the phased introduction of minimal thermal efficiency standards for rental accommodation, ensuring greater access to energy efficiency measures, reforming the eligibility criteria for energy efficiency schemes and framing the work of the interdepartmental agency group on affordable energy on five priority work packages.

The overarching vision of the new strategy is to achieve a situation whereby households are able to afford all of their energy needs and where families live in a warm and comfortable home that enhances their quality of life and supports good health. Improving the energy efficiency of low-income homes through permanent structural improvements is the most effective means of addressing energy affordability. Since 2006, over €70 million has been expended on providing energy efficiency improvements in almost 76,000 homes under the better energy-warmer homes programme, which is administered by the Sustainable Energy Authority of Ireland on behalf of my Department. To date this year, 16,391 homes out of a target of 20,000 have been retrofitted. Better energy-warmer homes programme is primarily delivered by 28 community-based organisations, CBOs, which work in partnership with their local networks of poverty and community support organisations to identify and address vulnerable homes. Private contractors are also engaged to address areas or technologies not covered by CBOs.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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I thank the Minister for his reply. The review of fuel poverty indicated that between 1,500 and 2,000 persons may have died in the winter of 2009-2010. I am not saying they all died from lack of heating in their homes but, certainly, it was a big contributing factor. The grant scheme that was available and operating up until now has helped in many cases to encourage people to properly insulate their homes. If this scheme is no longer available or if Better Energy: Warmer Homes is linked to a type of loan procedure, the indications are that will not work out because those who cannot afford to pay energy bills are unlikely to participate in any scheme that seems to take further from the household income. Would the Minister agree that the poverty of those on low income and of the elderly who do not have the money to purchase fuel in order to heat their homes or do not have the money up-front to engage contractors to insulate their homes, is a major contributing factor in what is happening? Many are living in cold homes that they cannot afford to heat. Is there anything in the Minister's proposal that can help such people? I refer to low-income families. In fact, this problem is expanding into middle-income families.

Michael Kitt (Galway East, Fianna Fail)
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I must call the Minister to reply.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Is there any scheme that can help those who will not qualify because of income?

Pat Rabbitte (Dublin South West, Labour)
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I agree with Deputy Martin Ferris. It is undoubtedly the case that there are people living in the circumstances that he described. No doubt he is correct that it has a negative impact on their health, etc.

I can assure him that the grant scheme to which he refers will survive the budget. Together with the jobs initiative announcement earlier in the year, we will have spent some €100 million this year on the retrofit programme, which will have done the job on maybe as many as 60,000 homes with the happy spin-off of providing 6,700 jobs in the process.

If there is not a copy of the Affordable Energy Strategy in Deputy Ferris's pigeon hole, it should be there by tomorrow, as for all other Members of the House. It sets out 48 specific actions with timetables for implementation. All of the evidence shows that it is the poor standard of thermal efficiency in houses that is the single biggest contributor. One can give as much as one likes on the fuel allowance, for example, but if the house is very badly insulated, much of it goes up the chimney. Such efficiency is the priority and we hope to integrate it with the schemes that are there already.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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I welcome the fact that the Minister has assured the House that post-budget the grant scheme in place will survive. That is encouraging for those who are hoping to make the improvements necessary.

Regarding fuel poverty, is it possible for the Minister to intervene with the regulator regarding the prices of ESB and Bord Gáis to ensure that energy is affordable and there will be no further hikes over the winter? The people are desperate to maintain heating for their families and, in particular, their elderly. A ministerial intervention, if it takes that, should be forthcoming.

Pat Rabbitte (Dublin South West, Labour)
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I am happy to communicate my view again publicly to the regulator, which is that any further changes in energy prices this winter ought to be downwards.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Yes.

Pat Rabbitte (Dublin South West, Labour)
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I accept entirely that we are price takers in a global energy market and that gas prices, in particular, have gone up almost 30% in the last 11 months or so, which has a very severe impact on the provision of energy, including electricity. That is a very serious situation.

In reply to Deputy Ferris's question, I would hope the discussions we have been having over the past six months with the banks and the energy supply companies will lead to a new partnership between Government, banks and energy supply companies that will enable us to progress to a pay-as-you-save scheme whereby we could engage in retrofit far more widely than is the case at present and that could remunerate the cost of doing that out of the savings made in their energy bills.

I have not forgotten that some six months ago or so I met the Construction Industry Federation about the role it might play in this regard, given there is a significant dimension of this that would create employment. As I was asking him questions about the standard of heat efficiency in Irish houses, one member of the CIF said to me: "To tell you the truth, Minister, most of the houses in Ireland are only shelters from the rain." I did not remind him that he had built a good deal of them himself, but if that is the standard, we need to address it as our first target.