Vincent P Martin (Green Party) | Oireachtas source

The Minister of State is very welcome to the Chamber, as always. In his opening remarks he said the Russian invasion of Ukraine in early 2022 led to exceptionally high energy prices, that the Government is aware of this, and that the Government is recognising and responding in an appropriate way. Russia has used energy as a weapon of war in its illegal and unprovoked brutal war in Ukraine. Communities across Europe have had to pay extremely high gas prices. For a time, the price of gas was ten times higher than the pre-war price. We have seen massive profits recorded across the fossil fuel industry over the past two years, while at the same time energy prices for consumers were going in one direction only. They increased and then they increased further. Many companies faced no additional costs but still benefited from this huge increase in the cost of energy as a result of the international market. This war profiteering is simply wrong.

This Bill, which the Green Party group welcomes, will allow the State to take a contribution from excess profits that were experienced by companies in the fossil fuel sector in 2022 and 2023. The temporary solidarity contribution is 75% of taxable profits that are above a 20% threshold of average taxable profits in 2018 to 2021. This is applicable for 2022 and 2023. Regulation to allow Ireland to do this comes from the EU. However, Ireland has decided to collect 75% rather than 33%, which is the minimum contribution required by the European Union regulation. This is significantly higher than many of the European countries that have already implemented the EU regulations. Most have levied the suggested 33%. Only Romania comes close to Ireland at 60%. This Bill will result in a gain to the State of between €240 million and €250 million. The Government will consult the energy poverty steering group on how the collected revenue will be distributed. This is welcome. It is essential we protect those who are unable to pay for energy in this crisis, just like it is essential our response to tackling climate change is underpinned by a just transition. As we transition away from fossil fuels it must be just.

In response to the public being hit very hard with rising costs, I welcome this year's €600 electricity credit. Last year's €200 electricity credit was also welcomed. There is also the €400 fuel allowance lump sum and the extension of the fuel allowance qualifying threshold. The expansion of that scheme meant that up to 81,000 new households were supported with their fuel costs for the first time. I also welcome across-the-board increases of €12 per week in welfare, which took effect from this January. I welcome the €200 lump sum payments for those in receipt of the living alone allowance. I welcome the extension of the VAT cut on gas and electricity. I welcome the 20% cut in excise on petrol and the 15% cut in excise on diesel. At the time it was an essential response for people who are hurting so hard and so deep. I also welcome the €500 lump sum on the working family payment for those on low incomes. There were also other important initiatives delivered by the Government, including a double payment of child benefit last November, an extra €100 per child in child benefit this May, free school books coming this September for primary schools and special schools, a €500 payment for those in receipt of the carer support grant, and a €500 payment for those in receipt of the disability allowance.

It is clear that fossil fuels are not the future for our energy system, which I am aware the Minister of State knows only too well. Fossil fuels have been used as a weapon of war in the Russian war on Ukraine and it has forced hardship on consumers here in Ireland and all over Europe as gas prices increased tenfold. Thankfully, prices have dropped but still remain nearly double the pre-war price. If we have any chance of meeting our global climate objectives, we must keep fossil fuels in the ground. We must power our lives and our economies with renewable energy. The energy transformation is under way in Ireland with a significant investment in solar and wind energy. Solar is taking off. The Green Party can take huge credit for an even and just transition. There is a solar revolution taking place.

The Green Party also has a proud tradition in adherence to proper planning and sustainable development, and the principles of planning law. I would like to see certain ground rules as we roll out solar and other very important initiatives. Certainly, lithium storage for batteries has a role to play in the short to medium term. Right now there is no need for an environmental impact assessment for such developments or for large-scale solar projects, yet for a piggery we need an environmental impact assessment. Right now in this jurisdiction we do not grade the quality of land. I believe we must take every one with us, and the last thing I want to see is to take two steps forward and then being forced to take five steps back by the superior courts overturning and throwing out initiatives because we did not do the groundwork for planning in a proper and coherent way that would pass the test that would be placed in the courts. It is so important these projects are not reversed or we will lose years. Good land should be graded, and for solar, for example, we should prioritise car parks and poor quality land first before going for other land, if at all possible. That is the way it should be done and I believe it can be done that way.

There are almost 700 MW of solar installed in Ireland now. This is connected to the national energy grid and is generating around 600,000 MW of clean and renewable energy per year. This includes 6,000 domestic rooftop installations. ESB Networks is processing 500 applications for grid connections every day. Support measures under the Green Party include removing planning permission red tape for solar panels, which I welcome, and the reduction of VAT on solar panels to 0% for supply and installation. There is also a microgeneration support scheme. For the first time consumers can now get paid for any excess renewable energy they generate through solar panels on their private dwelling roofs. Plans at the Department of Education are being finalised for free solar panels for schools. Money has already been assigned under the climate action fund.

Our addiction to fossil fuels must end. I have been told by several people that there is a new happier addiction, if I may call it that, to an app on a mobile phone that measures how much solar energy people are generating in their own homes. This has caused people to look at the app happily on many occasions when they are away and they can see that money is going back to the grid, they see that their car is being charged at certain hours of the day, and still some energy is going back to the grid. This is the way we want to move. This is a step in the right direction. It is in solidarity with the EU. I welcome it and I commend the Minister of State on his continued efforts.