Seán Fleming (Laois-Offaly, Fianna Fail)
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I thank the Acting Chairman for allowing me to raise this issue. I want to find out the reasons behind the decision of the Minister for the Environment, Community and Local Government to require local authorities to consider reduced or no planning development contributions in respect of wind turbines which are not supplying electricity to the national grid. Many people will be aware of the existence of many local windfarm projects throughout the country, which are contributing to Ireland meeting its targets in respect of renewable energy. They all went through the planning process and paid their development levies and rates. Many other windfarm projects currently in construction will go through he same process.

Why has the Minister of State or the Minister entered into a special arrangement in respect of two companies, and two companies only, requiring local authorities to exempt them from planning development financial contributions in respect of their wind turbines? This special arrangement is not available to any other company. The two companies to which I refer are Element Power and Mainstream. The Minister of State must be aware of the controversy in respect of these companies, each of which is planning the construction of 750 wind turbines in the midland region in Laois, Offaly, Kildare, Longford and Westmeath. Their turbines will be 186 m high, higher than anything else in the country. I am aware the Minister intends to produce new planning guidelines in terms of set-back distance but before we have the planning guidelines, he has already changed the rules financially for these two companies. The Minister issued guidelines to the local authorities entitled Development Contributions Guidelines for Planning Authorities in January 2013. That document states that "[P]lanning authorities are required to include the following in their development contribution schemes". It further states that "For example, authorities are encouraged to consider reduced or no charges in respect of renewable energy development which is not supplying electricity to the national grid". The Minister of State knows full well that this relates to only two companies in respect of which her party colleague, the Minister for Communications, Energy and Natural Resources, Deputy Rabbitte, has already signed an outline agreement with the UK for the export of electricity, which will not be going to our national grid but to the UK national grid. Why has the Minister entered this special arrangement for two companies only?

Michelle Mulherin (Mayo, Fine Gael)
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The gist of the matter I wish to raise is slightly different. I do not know if the Minister of State has the wording of it but I have asked that the position regarding the community fund in respect of windfarm projects, transmission projects for erecting pylons and high powered electricity lines and all other energy infrastructure would be put on a statutory basis and that part of the planning code would allow local authorities to make it a condition of planning permission that communities would benefit. That is not currently happening vis-à-vis the local authorities.

The background to this, and this is perhaps from where Deputy Fleming is coming on this issue, is that there is a great deal of negative press about various proposed energy infrastructure developments, be they windfarms or transmission lines. Many such developments gives rise to chaos in communities. There is a great deal of fear about them and many individuals and communities ask why they have to tolerate living next to a pylon or some other development. It is beholden on the Government and all the stakesholders to involve stakeholders in the community and to open up the debate and shift the focus to the reason this infrastructure is being attempted to be developed and what the benefits of it are. Aside from jobs, the need to modernise our energy infrastructure and to tap into our renewable energy potential, the local people on the ground have to be considered. They have to put up with, at the very least, having to look at the development and with other aspects including health concerns. The nettle must be grasped in this respect. Anybody who has to put up with the construction of energy infrastructure for the benefit of the entire nation must be particularly compensated. I am not only talking about landowners because provision is made for them.

One aspect of this issue is the community fund. Currently, provision in that respect is very ad hoc. It depends on the developer in the case of wind energy projects and some are more generous than others. It leaves communities in general not knowing where to turn because there is no table or script to indicate that such a price is a fair price to get per megawatt installed. In that context, I would also include EirGrid in terms of its transmission lines.

Jan O'Sullivan (Limerick City, Labour)
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I hope I can clarify somewhat the issues that were raised. I thank both Deputies for raising this issue. In January of this year, my colleague the Minister for the Environment, Community and Local Government issued updated guidelines on development contributions under section 28 of the Planning and Development Act 2000, as amended. Planning authorities and An Bord Pleanála are required to have regard to the guidelines in performance of their functions under the Planning Acts. The principal aim of the new guidelines is to provide non-statutory guidance on the drawing up of development contribution schemes to reflect the radical economic changes that have impacted across all sectors since guidance last issued in 2007. While it is recognised that the adoption of development contribution schemes is a reserved function of the elected members of each planning authority, one of the outputs of the new guidance should be a greater level of consistency in development contribution schemes on a national basis providing enhanced clarity to inform investment decisions across different local authority areas.

Local authorities now, more than ever, need to achieve the right balance between funding necessary infrastructure through planning gain and supporting and promoting economic activity and job creation by reducing costs to business. Subject to the overriding principles of proper planning and sustainable development, adopted development contribution schemes should contribute to the promotion of sustainable development patterns, economic activity and to securing investment in capital infrastructure and economic activity. To bring this about, planning authorities are required to provide for reduced rates of development contributions or waivers for certain specified developments. Included in those are options for reduced charges in respect of renewable energy development to promote uptake of renewable energy technologies.

For example, planning authorities are encouraged to consider reduced or no charges in respect of renewable energy development which is not supplying electricity to the national grid, but I want to explain that. This is primarily intended to apply, for example, in situations where landowners install wind turbines on their own land for the purpose of generating energy for their own use.

Authorities should also ensure that their schemes distinguish proportionately between large and small-scale. For example, it would be inappropriate to charge the same flat rate charge to a 6,000 MW wind turbine as it would for a 3 MW wind turbine.

It should also be made clear that such reduced development contribution arrangements or waivers are not intended to apply in respect of the development of wind farms where the energy generated is "for export" and is not supplied to the national grid. If that needs to be further clarified for Deputy Fleming, I would be happy to do so.

The construction of wind farms are subject to the planning code in the same manner as other developments. Planning authorities and An Bord Pleanála must also have regard to my Department's 2006 Guidelines for Wind Energy Developments. We are currently undertaking a targeted review of these guidelines focusing on the issues of noise, proximity and shadow flicker. I expect those revised wind energy development guidelines will be finalised around the middle of next year.

To turn to Deputy Mulherin's issue of community gain in the context of energy-related infrastructure projects, the Government Policy Statement on the Strategic Importance of Transmission and Other Energy Infrastructure, published by the Department of Communications, Energy and Natural Resources in July 2012, recognises that the delivery of long-lasting benefits to communities is an important way of achieving public acceptability for infrastructure. The statement also sets out the Government's support for a community gain approach in the delivery of energy infrastructure as a means of mitigating potential visual disamenity. The policy statement underlines the imperative for early and ongoing engagement and consultation with local communities and all stakeholders before projects enter the planning stage. This is essential for building public confidence, ensuring a more balanced public debate and a more timely delivery of projects.

The Government will keep under close review the effectiveness of the consultation processes at local level as well as the Strategic Infrastructure Act in delivering the necessary outcomes which balance the concerns of local communities with the economic, social and energy security benefits of other projects.

While everyone, ultimately, benefits from national energy infrastructure, potential negative impacts resulting from concerns about visual amenity, health and safety need to be mitigated through the consultation process and, where appropriate, the application of community gain measures. The Government considers that greater focus must be given to co-operative work with local communities and local authorities on landscape, biodiversity and civic amenity benefits bringing long-lasting benefits for communities. It is therefore appropriate for State companies and energy project developers to examine suitable means of building community gain considerations into their project budgeting and planning. The Government is fully supportive of a community gain approach being applied in the delivery of energy infrastructure.

Seán Fleming (Laois-Offaly, Fianna Fail)
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First, I accept the Minister of State's well-meaning intention when she says this must be clarified but I do not believe what she said is fully accurate. She said this is primarily intended for local small usage and is not intended to apply in respect of energy generated for export. As drafted, it clearly means those not connected to the national grid and the biggest such projects are the ones for export. Second, and most importantly, the companies involved know it applies to them because time and again both of those companies, in their documentation, stated that each year there will be a benefit to the local community through rates and payment to the landowner. They never said they will be paying development levies because they would have listed that as a benefit if they were paying levies to local authorities. They know they are out of the gap on this one.

Also, if Ireland is not charging development levies the Minister of State is effectively subsidising companies to compete for electricity prices in the United Kingdom. Is that in breach of European Union state aid rules? The Minister of State has not explained the reason this deal was done, the advisers and Ministers who met these companies and, in particular, the situation regarding the board member of Mainstream Renewable Power, Mr. Brendan Halligan, who also happens to be the chairman of Sustainable Energy Ireland. That needs to be clarified. Finally, will the Minister's Department show the same favouritism in the planning process by issuing directives and policies to An Bord Pleanála to grant these two companies planning permission just as she has directed local authorities not to charge them development levies?

Michelle Mulherin (Mayo, Fine Gael)
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I refer to the last line in the Minister of State's reply which states, "The Government is fully supportive of a community gain approach being applied in the delivery of energy infrastructure". I fully accept that but I am asking for the practical translation of that to be put on a statutory basis. I will give the Minister an example that prompts this question. We will have what will probably be one of the biggest wind farms to be developed in this country, aside from plans for the Midlands, in my area, namely, the Oweninny wind farm being developed by Bord na Móna and Coillte. The type of community fund they are offering per megawatt installed is paltry compared to what some private developers offer and the community have nowhere to go other than to bargain with State companies that do not operate on the same basis as private developers.

The county council has drawn up a guideline as to how communities should be compensated under a community fund but cannot put a condition in the planning permission because there is no statutory basis for it. That is necessary for wind farms, Eirgrid projects and these transmission projects. It is not just landowners who will be affected. Equally, the neighbour will be looking at it but they are not getting a cent for it on paper. We must change the conversation from the lofty heights of aspirations for 2020 targets, listen to the fears of people on the ground and compensate them in a fair manner. Otherwise, we will never reach 2020 targets for renewable energy to be installed. I ask the Minister that that be put on a statutory basis.

Jan O'Sullivan (Limerick City, Labour)
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I thank both Deputies. They are separate but related issues. I assure Deputy Fleming that the intention is not to exempt these-----

Seán Fleming (Laois-Offaly, Fianna Fail)
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That is what is written in the reply.

Jan O'Sullivan (Limerick City, Labour)
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The intention is to exempt the small person having a wind farm or other forms of energy for their own use. That is the intention and if we need to clarify that, we will do so. I would also make the point that these large for export proposals are nowhere near getting permission at this point in time. They have a number of hoops to go through first, including an intergovernmental agreement, the policy development within the Department of Communications, Energy and Natural Resources, and then the planning process. I state categorically that we have no intention of interfering with the independent role of An Bord Pleanála and for the Deputy to even suggest it-----

Seán Fleming (Laois-Offaly, Fianna Fail)
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They are bound by Government policy.

Jan O'Sullivan (Limerick City, Labour)
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We have no intentions of interfering. They have an independent role, and rightly so, and I have no intentions of getting involved in any way in that regard.

I hear what Deputy Mulherin is saying and we will certainly look at it. We have the draft guidelines out for consultation at the end of this year and in that context we will be developing policy. The Strategic Infrastructure Act is kept under review. We will look at the proposal the Deputy is making but I cannot give her any commitments today.