Larry Butler (Fianna Fail)

I congratulate the Leader who has been consistent in putting pressure on the ESB and Bord Gáis to reduce their prices to industry. At this time it is key that we have a low industrial power base to ensure we keep the jobs we are losing. That would be a big incentive. I thank the Leader in particular for the work he has done in that regard.

I also welcome the Minister's scheme on retrofit and energy conservation. I raised the issue six months ago of how jobs can be created. This proposal in which the Minister has invested €160 million is very important. It will entail the development of schools and energy conservation. The scheme will also provide €50 million for local authorities to bring their housing up to the proper standards. It will further ensure that middle-income householders will be able to avail of it. That is phase one of the scheme.

What the Minister should do now that he has announced the grant scheme is to introduce tax allowances over a five-year period. That might be more efficient. Will the Leader ask the Minister to examine this? This would be a more efficient way of introducing the scheme. Every €25 million pumped into the scheme will create €100 million in investment, which will mean 4,000 jobs and a saving of €25 million to the Exchequer on dole payments. This is only phase one and the scheme will have to be examined seriously.

The Minister will have to extend this vitally important scheme to cover solar, wind and thermal power, which would reduce significantly the bills of householders. Now is the time to take this enormous initiative. An investment of €9 billion will be made in 1 million houses and if we do not make it, the State will face charges for not meeting its carbon emissions targets under EU agreements and the Kyoto protocol. We have an opportunity in this regard.