Alice-Mary Higgins (Independent) | Oireachtas source

I second Senator Sherlock's recommendation and also have a number of recommendations of my own in this group. When a new scheme is brought in, it is important that it is targeted as effectively as possible. Any new scheme comes with significant cost. Being responsible means that we target it as effectively as possible. I am concerned by those who are included and those who are excluded in respect of this new scheme. When we table these recommendations, it is because this is a new scheme being rolled out right now. The earlier we identify concerns and the earlier the Government responds to them the better.

In recommendation No. 7, I point out my concerns regarding the eligibility of data centres for support under the energy support scheme. The energy consumption of data centres is one of the key concerns we have to address in this State. It is estimated that data centres are using 14% of all energy today. There are projections of them using up to one third of electricity in the years ahead. The energy consumption of data centres and the pressure they are putting on the grid are significant. There is a danger that as well as putting pressure on the grid, they themselves are expressing lack of confidence because they know the grid will be under pressure, largely due to the fact that there has been a 285% increase in the energy demand from data centres. That is in respect of electricity. In Europe, the average for electricity has been a 0% increase. Ireland has had a 9% increase overall in electricity demand. Data centres have contributed to a 285% leap. The idea of us subsidising them under the energy support scheme just seems anomalous and poorly targeted. When they are not putting pressure on the grid, they are talking about stand-alone energy systems such as gas-fired or diesel generators which will affect us meeting our sectoral targets in our carbon budget. When the State is having a discussion with data centres on energy usage, the idea that we are also supplementing such demand with public moneys through an energy support scheme seems anomalous.

If the concern is around targeting a particular kind of business, my second recommendation addresses that. It will capture many of the same actors. It simply provides that the TBESS should not be targeted at companies that have an annual turnover of more than €20 million. This would address many of the same issues. Massive international companies have data centres. If the Government does not want to screen by type, it could screen for those who do not need this State support. Large companies with turnovers of €20 million per annum do not need this targeted State support to the same degree. I am sure there is a case they can make but they do not need it in the same was as our small and medium-sized businesses do. Rather than focus resources on those who are extraordinarily profitable, the Government should redirect towards the kinds of businesses that have been mentioned such as the credit unions.I strongly support the points made by Senator Sherlock in respect of both our credit unions and the community and voluntary sector, which is the subject of my amendment No. 9. The sector is a safety net for society and it engages with real people who are in danger of health consequences, for example, from energy poverty. It is a concern if the community services and the very often vulnerable persons who use them are unable to access adequate heating. The energy subsidy is very much needed in those areas. One example is the drugs and alcohol task forces, which are only now seeing their funding restored to the level it was at back in 2006 but face considerable additional costs that never existed at that time. Widening access to the scheme is needed at the bottom of society for the organisations that do considerable work in reaching individuals and provide places for the community at a time when households are under pressure. A re-examination is also needed of money being wasted by the State at the very top level for those very large companies that, frankly, do not need it.