Larry Butler (Fianna Fail)

I move:

That Seanad Éireann commends the Government on its introduction of a national insulation programme aimed at tackling the legacy of poorly insulated homes, improving energy efficiency, reducing electricity costs, protecting vulnerable members of society and securing additional green employment opportunities.

The Government has announced a national insulation programme for economic recovery, which is part of our smart economy document. I welcome this announcement. I have done much work on the insulation programme which went through the Fianna Fáil parliamentary party, and I am glad that the Minister has now put some money behind it. This is a most important step.

Insulation deals with how we conserve energy in our houses and how we expend energy in our country. It costs us around €6 billion every year to import gas, oil and alternative energy. Anything we can do to make our houses more energy efficient is very important. The Government has now recognised that. This proposal can create between 7,000 and 20,000 jobs, and people will then start to realise what a programme it is. We have a commitment with the EU and under the Kyoto Protocol that we would reduce our CO2 emissions by 2013. If we did not take this action now, we would possibly end up paying about €250 million per year in carbon taxes after 2013. Therefore, this the right action to take.

We are also offering householders a generous contribution if they ensure that their houses are properly insulated. Not only are we providing them with an incentive, they will also save a substantial amount of money every year. Depending on the investment of between €10,000 and €20,000, they could save up to €1,000 every year, which is very substantial. This is also very important to the construction industry at a time of a big downturn. As we know, the construction industry played a major role in the Celtic tiger years, when the turnover in that industry was about €30 billion. In 2008, the renovation section of the construction industry had a turnover of €8.2 billion, even though the downturn had begun at that stage. We believe the new proposals will lead to another increase, from €8.2 billion to almost €10 billion. That will be welcomed by people in the construction industry. Direction and radical thinking are needed in the current economic climate. The insulation programme will save energy and money and create jobs. It will be confirmed that the Government's assistance is to extend to those in private homes, those on low incomes and those in social housing. It is important to bear in mind that this scheme will not just be of benefit to middle-class people. Some €160 million will be spent across the economy. Some €60 million will be given to local authorities for the upgrading of schools' insulation systems.

When the insulation and renovation programme has been completed, we will find that it is a small part of what needs to be done in the renewable energy sector as a whole. This proposal has been sanctioned by the Government because it realises that a substantial development needs to be completed. This is just the start of a programme of upgrading almost 1 million houses throughout the country. The programme will involve investment of €9 billion over many years. We should get it up and running as soon as possible. I ask the Minister of State to ensure that takes place. Many people are waiting until March. It is important for the Minister of State to ensure the programme is in operation as soon as possible. No work is being done in the renovation sector because people are waiting until March.

I draw the Minister of State's attention to the fact that no allowance for double or treble glazing has been made in the programme. That is terribly important because there are many jobs in this area. It should be a key part of everything we do. When an inspector comes to make a building energy rating report, the first thing he does is check whether the house is draught-excluded and airtight. To do that, one must have very efficient windows. No provision has been made for this area in the scheme. It would be worthwhile to make such a provision. It would give this country's window manufacturers a boost, thereby facilitating job creation, which is what we need. God knows that many jobs have been lost over recent months. When a scheme of this nature is being put in place, it is important to ensure we can get the maximum out of it.

I would like to speak about eligibility for this scheme. The scheme is aimed at older houses, which do not tend to be energy efficient. Such houses featured in the recent new homes scheme. In 2005-06, we increased the insulation requirements for the new housing stock that was being built at that time. The houses in question are very efficient at holding in heat. The best way to describe what we are trying to do is to compare it to putting a thermoflask over one's house. We are trying to ensure no energy escapes. People need to get the very most out of their energy. Everybody knows that householders are currently spending up to 10% of their money on energy. This is one of the things we are trying to do to help them.

I will run through the various elements of the scheme. An allowance of €250 is available for roof insulation and €400 is available for cavity wall insulation. Some €2,500 is available for internal wall insulation and €4,000 is available for external wall insulation. An allowance of €700 is available in respect of high-efficiency boilers. The heating control and upgrade allowance is worth €500. If one wants to get an inspector to conduct an energy rating on one's home, one can apply for an allowance of €200. That is a very good scheme. All that is missing is for provision to be made for double glazing. I ask the Minister of State, Deputy Seán Power, to bring that to the attention of the Minister, Deputy Gormley.

First-time applicants who wish to participate in this scheme and avail of building energy rating inspections will be required to make a minimum investment. Such householders will get a minimum grant payment of €500. This means householders cannot qualify for the roof insulation grant, or the cavity wall insulation grant, without also getting other things done. I wish to comment on the figures issued by the Government. In the first year, €100 million will be spent on the——