Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

The Sustainable Energy Authority of Ireland, SEAI, administers the Better Energy programme on behalf of my Department. As I announced in the context of the budget, the Government has committed significant funding of €76 million to the programme this year. It will, therefore, continue to underpin economic activity in 2012, supporting at least 4,500 jobs and realising significant energy savings for households. In the current extremely difficult budgetary and economic environment, the programme is being maintained and will continue to deliver positive economic impacts and consumer benefit.

Grant levels for half the measures have been adjusted for 2012 in light of market developments and to ensure when necessary a better link between grant support and dwelling type. Support for external wall insulation, for example, was originally set at a level designed to stimulate consumer demand and the market development of this sector. It is increasingly clear from the pattern of grant applications for the Better Energy Homes scheme that this measure is in high demand. The adjustment to the external wall insulation grant reflects increased price competitiveness in the market and the relative cost of undertaking this work on the various house types.

There have only been minor adjustments to many of the popular measures, so for the majority of contractors and applicants there will be little or no overall impact. Applications under the programme received prior to 8 December 2011 will be eligible for the grant level at the previous grant rates.

The SEAI models levels of commitment and expenditure patterns on an ongoing basis which has enabled them to successfully manage their budget envelope each year. In addition, the Government's capital investment framework published on 10 November, sets the broad direction, level and sectoral split of capital investment of the years 2012 to 2016. Such capital investment is subject to relevant value for money arrangements, including detailed appraisal prior to the commitment of Exchequer resources.

The programme for Government provides a commitment to roll out a pay-as-you-save, PAYS, retrofit scheme after 2013, which is planned to replace the existing Exchequer funding for Better Energy Homes. The transition to market-based mechanisms by 2014 is complex and detailed work is under way by my Department in conjunction with all relevant Departments, agencies and the energy and financial sectors.

In relation to actions to mitigate energy poverty, I would point out that the Warmer Homes scheme remains open and free-of-charge to eligible applicants. We are introducing changes in the structure of the programme to reflect the Government's affordable energy strategy. Priority will be given to households considered to be in extreme energy poverty, that is, those who spend over 20% of their disposable income on energy. This initiative will ensure that those most in need will be the first to receive the benefit of energy efficiency measures.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

I am disappointed to hear of the narrowing of the Warmer Homes scheme. Anyone with an inefficient house and a low income should be assisted.

In 2010, the budget allocation for the three energy schemes was €94 million and €93 million was actually spent. In 2011, after the jobs initiative budget, the allocation was €99 million. The Minister has cut that to €64.6 million. In 2011, he said he would create or sustain 5,800 jobs, that is, 2,000 jobs in addition to the 3,800. He now says that will be reduced to 4,000 jobs. This amounts to a loss of 1,800 jobs.

Why is the Government reducing the commitment to investing in something that would give a significant long-term return to the economy, as well as making houses comfortable for humans to live in, by reducing a requirement to import very expensive hydrocarbon fuels? The Government seems not to have carried forward the money taken from pensioners last year in the pension levy which was meant to go into these schemes. Why did the Government decide to reduce the commitment to these schemes, particularly having robbed the pensioners of Ireland to invest extra money into these schemes?

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

I do not know how robbing the pensioners of Ireland relates to this.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

Income from the pension levy was supposed to go into these schemes. It is not going into them.

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

Deputy Ó Cuív tried to rob them of their medical cards. That is the only robbing I remember.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

That was a socialist approach. People on high incomes should not have medical cards.

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

They fought back with great gusto.

As the Deputy said, €94 million was allocated in 2010 for this very commendable scheme. Unfortunately, the budget was cut to €65 million. That is my figure rather than the €60 million he has.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

€69.4 million. The Minister should check the Estimate.

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

Deputy Ó Cuív's Government cut it by almost one third.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

Then the Government took €30 million off pensioners.

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

When this Government came to office I got €30 million extra under the jobs initiative scheme, and that brought the expenditure to €95 million last year. The previous Government had cut it to €60 million.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

€69.4 million.

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

This year, we are putting in €76 million. I am doing this for a number of reasons. The first is because the previous Government left no money after it when it went out of office. That is the big reason. There is no money. Second, prices are now more competitive than three years ago. One can get this work done in the market place at a discount and we have discounted some elements of this package. Third, I want to meet the demand that exists as far as I can.

When grants were first introduced, the intention was to stimulate the market and to stimulate interest in energy efficiency and retrofitting.

It did that very effectively. Now that it is done, the Government intends to move towards a pay-as-you-save system, as I have explained before. It is possible for us to put in place a financial model that will enable householders to cause this work to be done in their homes out of the savings that will accrue from better thermal efficiency. That is a much better approach than relying on a grant-based Exchequer-funded system.

Éamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context

What is the projected outturn for last year?

Pat Rabbitte (Dublin South West, Labour)
Link to this: Individually | In context

The outcome last year was €91 million.