James Carroll (Fianna Fail)

I welcome the Minister of State, Deputy Cuffe. Two weeks ago I had the pleasure of attending the Spirit of Ireland presentation in the AV room in Leinster House which highlighted the potential of our west coast. The presentation stressed that Ireland's west coast was like the Saudi Arabia of renewable energy with reference to the oil resources Saudi Arabia has. In his reply the Minister of State might outline what he believes will happen with the Spirit of Ireland project. That group has a great idea and energy, and has enthusiasm for Ireland inc. as a whole. I would be concern that its plan is so broad that it would involve many local authorities as well as national planning bodies. While I know the Minister, Deputy Ryan, is a great supporter of the project, how will we tackle that issue? For example, if Clare County Council and Limerick County Council decide to take opposing views on an area, would that sound the death knell for the project? I hope it does not because I was struck by the group's enthusiasm and positivity, from which many in this House and the media could learn a lesson.

I will touch on nine specific areas and I would appreciate if the Minister of State could reply on as many as he can. When I was in college many people spoke to me - and since then have lobbied me - about the issue of nuclear energy. People have strong views one way or the other. Some are so in favour of it that they see it as a foregone conclusion and that within 15 or 20 years the debate will not be if but when we will incorporate nuclear energy into Ireland, whether that is importing it or seriously considering having a nuclear power station. The other camp, into which I fall, argue that nuclear waste is such a problem and will be such a toxic problem into the future that we cannot even go there and we need to examine fully all the alternatives where the waste is not as damaging to the country. Just as the national recovery plan has done, many party election manifestos will need to lay out a one, five, ten or even 20 year plan for the country and I would be interested to get the Minister of State's comments on that.

Two weeks ago I submitted a pre-budget submission to the Minister for Finance and members of the Cabinet, and I also sent it to all Deputies and Senators. It proposed reducing the VAT rate to 5% on labour intensive and energy saving materials. I have seen the success of the home energy saving scheme and many people have contacted me about it in my constituency offices in Ardee and Drogheda. I have been encouraging as many people as possible to get this work done for two reasons. First, it reduces people's energy bills and while it might require an initial outlay, the grant is so generous that within a short period of time people start to save money. Second, it provides local jobs to one and two-person firms which have spent money getting themselves registered and should be rewarded for that work. My budget proposal is allowable under the EU Sixth VAT Directive and is being considered and operated in other countries, including Italy, Belgium and even Britain in respect of the Isle of Man. It has been extended to December 2016 regarding the use of a reduced VAT rate. The benefits are to reduce energy bills and to sustain and possibly create employment.

Regardless of people's objectives or their own selfish reasons, the SEAI report indicates the State has serious obligations coming down the track regarding our carbon credits. In addition I know the Department of Finance is concerned about tackling the black economy. The problem at the moment is that we have people on social welfare who are doing jobs for one or two days on people's houses. We need to get these people into the formal economy. The Italian Government has taken a number of measures working through the Sixth VAT Directive and others, resulting in 35,000 companies coming from the black economy into the formal economy. We should consider developing a serious plan in that regard.

The Minister of State stated that we could export our energy to the UK or to mainland Europe and the Spirit of Ireland is an integral part of that, coupled with other elements. I am very heartened that the export side of our economy is booming. Last weekend I met various groups representing the pharmaceutical industry. Those are two elements of our economy that seem to be sailing recession free through these turbulent and choppy waters.

That said, the Minister of State must focus on the public angst about pylons and where they are placed. It is a similar argument to the one put forward by Shell to Sea. People want pylons and energy but not near their houses or local primary schools. Perhaps the Minister of State could give the House an update on EirGrid's plans because that will be a major factor. The Fine Gael and Labour Party representatives, who hope to form the next Government, have been able to beat the drum in opposition to these but if they get into government in the next five or ten years-----