Dan Boyle (Green Party)
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I move:

That Seanad Eireann recognises the importance of the development of green technology for economic growth in Ireland.

The most recent edition of the respected publication Newsweek has a cover story entitled "The Green Rescue — Why Obama, Brown, Sarkozy and other world leaders are pushing towards a green solution to the economic crisis". The magazine is not known as the most radical of publications, yet it has obviously come to this conclusion of the basis of discussions that are happening in countries, governments and political parties across the world. The story is based on the idea that the international economic crisis exists because we have put too much faith in economic instruments that are no longer available to us as cheaply as they once were or in the quantities that once were there. The reality is that we now need to move towards a post-oil economy.

The price of oil has fallen significantly in recent months. This has been brought about owing to the inability of countries to pay for the resource. Because of that, there might be an expectation that we can go back to business as usual. It is also accepted that this dramatic fall from a world record price of €150 per barrel is very much a short-term phenomenon. The reality remains that there is only so much oil left in the world and demand for it will increase. This has resulted in increased research and development on what we should be doing to achieve alternatives that do not rely so much on fossil fuels. Renewable energy is the most obvious recipient of that research and development.

We in Ireland are still playing catch-up when it comes to making use of our own natural advantages in this area. Wind energy is the area that most appeals to the public imagination and knowledge of renewables. We are catching up fast and there are many wind farms and turbines being erected throughout the country. The Government has set a very ambitious target for renewables to reach 40% of total energy output in a short timeframe. The advantage of renewables is not just in reducing our energy bill but also in developing the potential of an industry through using its technology. As we are catching up in the area of wind energy, we are doing so with technology and equipment that has been developed and sold by countries that have made these decisions before us. The turbines we use are from Denmark and Germany. Had we started using this technology earlier than we did, there would have been great opportunities to develop the technology, produce the equipment and create jobs in Ireland.

There is another area of renewable energy in which work has already begun and in which Ireland has a competitive advantage. I am referring to wave energy, and the waves off the west coast of Ireland are most advantageous to this kind of development. There are several prototypes in place that began as models in laboratories and became quarter-size and then half-size turbines. They are generating a significant amount of electricity that would see the development of full-sized turbines on farms that will harvest wave energy in the future. The hope is that we would make these turbines in Ireland and sell the technology to other countries as well as creating more than enough energy to meet our own needs and sell it to other countries.

The German Government, in which the Green Party there participated for six years, developed its renewable sector to the extent that now there are 250,000 jobs in the German economy based on green technologies. A population equivalent suggests as many as 20,000 jobs could be produced in Ireland. It is a template we can and should follow. The United Nations Environment Programme produced a green report in September which predicted that a great number of jobs can be created worldwide from the green technology sector with an economic value of €284 billion. This is the crest of the wave that we in Ireland should be riding. We should be at the forefront in making the most of the potential that exists. How we do so will determine our success as a country in the future.

We can no longer rely on bubbles in our economy that will come and go depending on other economic circumstances, such as the reliance on property. There are some sectors in our economy that are, thankfully, still thriving and will continue to thrive, such as information and communications technology and the knowledge economy. However, we have lost many traditional manufacturing industries and we have learned in recent months that service industries are not as useful as we thought they may have been. Therefore, we need to develop a new sector that will fill that gap and will see us through crises in the future.

The Minister for the Environment, Heritage and Local Government, on foot of the carbon budget contained in the Budget Statement, has announced the establishment of a high level action group to advise on the development of Ireland's green economy. The group is setting out an action plan for developing green enterprise in Ireland in the next four months. The Minister of State said that an overall Government approach is needed to drive the green economy. This is essential in the sense that we have depended on certain Departments, such as the Department of Enterprise, Trade and Employment and the Department of Finance, to be that engine in the past. The whole point of a green technology approach to the economy, however, is that it will involve several other Departments, including not only the Department of the Environment, Heritage and Local Government and the Department of Communications, Energy and Natural Resources, but also the Department of Education and Science. In that way, we can make the most of the potential that exists.

It is hoped the high level action group will identify the potential for enterprise development, as well as how education training might address skills deficits and the necessary research and development for the potential of Irish firms to bid for public procurement opportunities throughout the EU. The Government is currently examining how the public service can give greater consideration to environmental impacts when Government goods and services are procured. In addition, the Joint Committee on Climate Change and Energy Security is examining how the green economy might best be developed. We can achieve much on our own as a nation through the efforts of Government and the political system, but we also need to make use of international partnership arrangements. The European Commission estimates that the eco-industry in Europe already employs more people than either car manufacturing or chemicals — a statistic that may surprise many people. The EU Commission's monitoring and modelling initiative for renewable energy targets shows that net employment growth in the EU in green technology jobs across all 27 member states is projected to increase to just under 1 million by 2010 and will rise to 1.5 million by 2015.

Countries with similar economies and populations to ours have also been addressing these issues. The Scottish Parliament has produced useful reports, which Members may wish to consult, on how this potential can be developed. The European wind energy association reports that in Spain — not a country that people will identify as being particularly windy — some 35,000 people are employed in the wind energy industry. The UN Food and Agriculture Organisation reports that organic farming requires additional manpower compared to conventional high-input systems. Studies of organic farms in Ireland and the UK show that such farms employ up to 1.5 times the number of workers found on conventional farms.

The report of the UN environmental programme, Green Jobs, contained a number of key findings. The obvious one is that the emerging green economy could create tens of millions of new green jobs. The global market for environmental products and services is projected to double from just over €1.4 billion at present to €2.8 billion by 2020. In Germany, environmental technology will grow fourfold to 16% of industrial output by 2030, with employment in the sector surpassing that of Germany's big machine tool and automotive industries, which are significant players in that economy.

Sectors that will be particularly important, according to the UN's environmental programme, include energy supply, renewable energy, buildings and conservation, transportation, basic industries, agriculture and forestry. In the United States, clean technologies already comprise the third largest sector for venture capital after information and biotechnology. It is very much the platform of president-elect Obama to increase this further.

Green venture capital in China has more than doubled to 19% of total investment in recent years. Some 2.3 million people have found new jobs in the renewables sector alone and the potential for such job growth is huge. Employment in alternative energies may rise to 2.1 million in wind and 6.3 million worldwide in solar power by 2030. Renewable energy generates more jobs and employment in fossil fuels. Projected investments of $630 billion by 2030 would translate into 20 million additional jobs in the renewable energy sector. In agriculture, some 12 million jobs could be created in biomass for energy and related industries. In a country like Venezuela, an ethanol blend of 10% in fuels might provide 1 million jobs in the sugar cane sector by 2012. If we were to translate that to Ireland, the potential of our now extinct sugar industry could do something similar.

A worldwide transition to energy-efficient buildings would create millions of jobs, as well as greening existing employment for many of the estimated 111,000 people working in the construction sector. Investment in energy efficiency in buildings could generate 2 million to 3.5 million green jobs in Europe and the United States alone. Considering the difficulties that have arisen in recycling in China, we should ask why we are exporting recyclable materials there. If such materials were to be retained in the economy under a waste management scheme they would provide significant employment here.

The purpose of this debate is to allow everyone to contribute positively towards recognising the reality of green technology and how it is being adopted throughout the world. Ireland needs to be at the forefront of matching the potential that exists in this area.

Déirdre de Búrca (Green Party)
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As the second speaker for the Green Party, I second the motion before the House. It is timely for us to debate such a motion, which calls on Seanad Éireann to recognise the importance of the development of green technology for economic growth. Given the current economic conditions we are experiencing, our case is all the more compelling. Even before the crisis became as deep and obvious as it now is, important factors had arisen such as rising energy costs, more environmentally conscious consumers, and our obligations under the Kyoto protocol. All of these combined to create real opportunities for green enterprise, thus promoting significant economic growth. We are all aware of the need to reduce our carbon footprint and to create a low-carbon economy. Rather than considering this as something that will depress or inhibit economic growth, these challenges should be seen as opening doors to new business opportunities for companies across the island of Ireland. We are facing difficult economic times, but it is more important than ever that we should focus on areas of potential where Ireland is well placed to compete, thus winning new markets.

Green enterprise clearly will be a valuable part of the long-term economic development of this country. Towards this end, the Government has established a high level group to develop an action plan for the development of green enterprise. That is a welcome development because we need a concerted approach to optimise the opportunities in this area.

Co-operation between Irish companies and research institutes across the island will be important in order to deliver technology and process advances that will be key in this sector. A number of studies have indicated that the value of the environmental services sector was in excess of $600 billion worldwide in 2005. It is likely to exceed $700 billion by 2010 and $800 billion by 2015. In Ireland's case, research and development will be an important part of stimulating economic growth in this area. Unfortunately this island has displayed low levels of research and development investment in the environmental services sector and this needs to be addressed. While some companies that become involved in the environmental services-green enterprise-green technology sector will continue to trade locally, there are also opportunities for Irish companies in emerging international markets and this should be encouraged. Our strong information and communications technology base, our green credentials and our past experience in attracting foreign direct investment should be to our advantage in attracting the same investment for this sector. However, it will require a targeted approach focusing on niche areas with the highest potential. The sub-sectors which we regard as having the greatest potential include renewable energy, efficient energy use and management, and eco-construction. The area of waste management recovery and recycling is also very promising, as is water and waste water treatment. Towards this end, public procurement policies will have a very important role to play in stimulating and fostering the development and adoption of new environmental goods and services. The education sector will also be central to developing skills to address the future growth of this sector.

Research will be very important and also the continued implementation of environmental legislation which will provide the regulatory certainty needed for enterprises to invest in this sector. The process of what is known in Europe as environmental fiscal reform will be very important and the carbon levy which the Green Party secured as part of the programme for Government is only one element of a wider programme of environmental fiscal reform which would be very useful in terms of promoting growth opportunities in this area.

There is a need for companies interested in becoming involved in the area of green technology and green enterprise to be able to access start-up and growth finance and this is especially true of small firms. Measures to improve seedcorn financing and remove market failures in the access of finance for these firms will continue to be important and will require attention from Government.

Given the financial crisis, many private venture capitalists who up to now may have been very enthusiastic about investing in huge green technology projects are now becoming more cautious and are scaling back that willingness to become involved. We must regard this sector as having the potential to provide the impetus to pull the global economy out of the slump. The UN Secretary General, Ban Ki-moon, recently referred to what he described as the green New Deal which he believed could rebuild and reshape the global economy in ways reminiscent of President Roosevelt's New Deal to revitalise the economy of the United States during the Great Depression. There could be a green response to this global economic crisis. The world economy needs a new economic driver. In the 1990s, the Internet and the network economy was the economic driver and this was before the dotcom bubble burst. The economic driver for this decade was the financial sector so we now need a new economic driver. The area of green technology and green enterprise provides a potential driver but the role of government will be central and public investment and fiscal incentives will be necessary to lay the groundwork to try to entice the private sector. There is a role for State intervention to redirect the market. Initiatives such as tax credits, direct Government spending and loan guarantees will be very important.

The Green Party has been stressing the challenge presented by the threat of climate change but it is often difficult to get governments to respond to this challenge. This motion points out the economic growth potential of the green technology sector but also the jobs potential. In 2008 the promise of jobs will be a stronger incentive to governments to go green than the threat of ice caps melting and coastal cities drowning. Unemployment in the eurozone is expected to rise from 11.3 million to 14.5 million by the end of next year, pushing the rate up from 7.5% to 9%. In the US the rate of unemployment is 6.1% but it is expected to push towards 8% by the end of 2009, the highest in 25 years.

In light of the US presidential elections, it is interesting that both presidential candidates strongly stressed green initiatives in their campaigns. The President-elect, Senator Barack Obama, was among the more ambitious of the candidates. He said he will strategically invest $150 billion over the next ten years in a clean energy economy that will help the private sector to create 5 million new good, green jobs that cannot be outsourced. He also spoke of accelerating the commercialisation of plug-in hybrid cars, promoting renewable energy projects, encouraging energy efficiency, investing in low emission coal plants and advancing the next generation of bio-fuels. He wants to create a programme to train American war veterans to work in green industries and to modernise factories to make green products.

Our motion is very timely and I second the motion and encourage other Senators to support it.

Maurice Cummins (Fine Gael)
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I welcome the Minister of State, Deputy Kelleher, to the House. It is customary that amendments are tabled to a Private Members' motion but we saw no reason in tabling an amendment to this motion which we fully support. I welcome the debate and I look forward to the contributions of many Members. I also welcome the Minister of State, Deputy McGuinness, who has just arrived in the House.

I was clearing out some old files last week and I came across the clár for the Fine Gael Ard-Fheis of 1977. Among all the laudable motions I came across one from the Trinity College branch calling for the establishment of a Department of the Environment to deal with the increasing importance of environmental matters in Ireland and proposing that we could learn from our European colleagues in this area. This was certainly a radical proposal at the time and long before the Green Party was founded. Unfortunately, it was also long before we as a nation seriously embraced the importance of the protection of our environment, the challenges of climate change and other environmental issues or green issues as they are now called. The same clár also contained another motion calling for an immediate improvement in the pupil-teacher ratio. Some things are as relevant in 2008 as they were in 1977.

I welcome the debate on the importance of the development of green technology for economic growth in Ireland and I also welcome the recent excellent report produced by Forfás on the environmental goods and services sector on the island of Ireland and the enterprise opportunities and policy implications arising from this report. Ireland is facing an unemployment crisis and recent figures highlight this. We need an aggressive approach from Government to tackle this problem. The development of green technology will not solve our problem but certainly can go some of the way towards increasing employment significantly in many areas which require urgent attention. The collapse of the construction industry has forced tens of thousands onto the dole queue with bleak prospects of employment in the immediate future and fear and despair for many couples who question what the future holds for them and their children. There is a requirement on the State to retrain and upskill these people and give them hope and confidence to plan for their future and the future of their families.

The building energy rating, which requires energy performance certificate standards for all houses, offers promising future opportunities for the domestic construction sector. There are approximately 1.4 million houses in this country and even assessing these houses should create employment but the training for this assessment should be fast-tracked. There is a need for greater insulation, the replacing of old and draughty windows and doors, and general energy conservation measures. These can create great opportunities but it is imperative that the Government would drive this sector and come up with imaginative ideas and grants, if necessary, to stimulate it into becoming a vibrant driver of economic growth, which is so necessary at this time.

I must compliment the Irish Farmers Association on its pre-budget submission on achieving a viable farming structure and supporting renewable energy generation on farms, which I read with interest. On-farm renewable electricity production should be encouraged and underpinned by the introduction of smart metering technologies.

To assist with the education and research of micro-energy development in Ireland, the IFA is seeking 100% grant aid, from funding already allocated for this purpose by Sustainable Energy Ireland, to establish eight wind-micro-energy units, four micro-solar units and two small anaerobic units on farms across the country. As part of this initiative, the IFA has undertaken to locate suitable on-farm sites and discuss terms with owners to ensure that farmers and other interested parties will have free access to the data and information generated. In addition, the IFA will organise an extensive education campaign for farmer groups through its training wing, IFA Skillnets. This proposed initiative by the IFA should be embraced and supported and I would urge the Minister to support and encourage such initiatives which will highlight the need to embrace green technologies which can benefit communities throughout the country.

While the priority to address global warming has taken a back seat after the shock of the recent financial turmoil we have witnessed, it is essential that Ireland and all nations should honour their commitments in this regard — hopefully the broom of change in the US will extend to environmental matters also. I welcome the fact the Government is establishing a high-level group to develop an action plan for the development of green enterprise, which is not before time. We must strive to optimise the opportunities that present in this area.

One of the findings of the Forfás report was that Ireland needed far greater investment in research and development. However, the Government in the budget reduced by 34% spending on energy research programmes. It is great to have reports like the recent Forfás report but they are useless unless the Government takes action to implement them. As I have stated, Ireland faces severe unemployment and economic difficulties in the coming years. The new opportunities in green technology and the green economy are there to be snapped up. However, the Government took the short-sighted view and reduced overall funding in this area at a time when our competitors are sure to be increasing investment.

I commend the motion. My colleague, Senator Coffey, will deal with a number of items, particularly those he raised on the Order of Business only last week in regard to recycling, to which Senator Boyle also referred in his contribution. I look forward to the further contributions. This is an area where we must take the bull by the horns. The Government must be prepared to put its money where its mouth is. Without that, we will lag behind the other European countries in particular and not realise the potential that exists as a result of the development of green technologies.

John Carty (Fianna Fail)
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I commend the Green Party on putting down this motion. I welcome the Minister of State, Deputy McGuinness, to the House. It is nice to see the Waterford alliance of Senators Cummins and Coffey so strong on the other side of the House. I am sure the Minister of State, coming from the sunny south east, is delighted to see them also, although that would not be the case in Croke Park.

Maurice Cummins (Fine Gael)
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We are the ones who do not like to see them in Croke Park.

John Carty (Fianna Fail)
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With the increased cost of natural resources such as gas from Russia and the ever-fluctuating price of oil, there has never been a more pressing time to reduce Ireland's reliance on foreign fossil fuels. We must develop our own natural resources such as wind and wave energy and produce the infrastructure we need.

I welcome the Government's target that Ireland will get 40% of its energy from renewable sources by 2020. It is an EU commitment to make a 20% cut in greenhouse gas emissions by 2020 and we are bound to that commitment. We have an opportunity to play a leading role in developing a green economy.

More than $140 billion was invested worldwide in clean renewable energy sources in 2007. This demand for environmentally friendly and cheap energy sources has created a multi-billion dollar industry worldwide and this is set to increase every year. Ireland, with more than 3,000 km of coastline, is strategically placed to become a world leader in the emerging industries of wind and wave power. At present, we have 35 onshore wind farms and one offshore wind energy farm. This figure will need to increase if Ireland is to become a leader in green technology. I appeal to the planning authorities, particularly in western counties, to put in place a policy in order that planning permission for wind farms can be achieved in a reasonably fast manner. At present, more obstacles than help seem to be put in front of anybody seeking such permission.

The Department of Community, Rural and Gaeltacht Affairs, with Sustainable Energy Ireland, is to fund a pilot study for a 12-month period on the Aran Islands to ascertain if it is possible that electricity, heat and transport needs can be supplied by renewable energy, which is welcome news for the west coast. This will hopefully provide a template to reduce the country's dependence on fossil fuels but, more importantly, it provides valuable technological know-how which Ireland can export throughout the world.

In June of this year, the Minister for Finance, Deputy Brian Lenihan, announced that he, with the IDA, welcomed IBM's — a US multinational — global centre of excellence for water management at its facility in Mulhuddart, County Dublin. To have such a household name known for its computer business moving into the area of green technology shows how important and relevant the area is becoming.

These are just a few examples of how Ireland has begun to move towards green technology and creating a sustainable green section of our economy. An example of an Irish company making serious inroads into international green technology markets is Airtricity. It was sold to Scottish and Southern Energy in a deal worth approximately €1.8 billion to shareholders. That is a good example of how green technologies can be profitable on a large scale for Irish companies.

An area where every citizen has the potential to gain monetarily from green technology relates to the facility to sell electricity back to the grid. This is where those with the capacity to create their own electricity with wind turbines, solar panels or wave power could sell surplus electricity back to the ESB, recouping their investment in green technology and making a profit.

The ESB is only now partaking in trials for smart-metering. It does not expect this to be available to the general public for several years. I call on the ESB to speed up the process and to make it available sooner. If such a scheme were fast-tracked by the ESB it would no doubt encourage people to reduce their reliance on fossil fuels.

In the coming weeks several Ministers who have responsibility in the relevant areas will collectively announce the establishment of a high-level action group to advise on the development of Ireland's green economy. The group will report to the Government in four months, setting out an action plan for developing green enterprise in Ireland with a view to contributing to economic growth and providing new and quality employment opportunities in this growing sector. I agree with Senator Cummins's call for on-farm alternative energy development.

Paudie Coffey (Fine Gael)
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I welcome the Minister of State, Deputy John McGuinness, to the House for this important debate. I compliment the Green Party on tabling this motion.

If it is utilised properly, many benefits can accrue from green technology for the economy, business and individuals. It should remain high on all, including the political, agendas. Senators have referred to the current economic climate, oil prices and the current large employment — and unemployment — rates. Where there are dark clouds, there also should be opportunities. Green technology is one economic area in which the Fine Gael Party believes there are opportunities for Ireland. If we manage the research and development aspect to it in an appropriate and well-resourced manner, we could take full advantage of this growing sector.

To the general populace, renewables technology is vague and relatively new. I acknowledge the work done by Sustainable Energy Ireland in raising awareness of renewables technology. There has to be, however, local, regional, national and international demand for the technology for this sector to develop.

Other countries have already taken advantage of certain areas in renewables. Energy generation from wind turbines is already a mature and cost effective technology. There are already several global leaders in the development of wind turbine technology. Ireland, unfortunately, missed that boat and does not have a foothold in the development of wind turbines. There could be opportunities in the micro-turbine area. The Government introduced new planning guidelines to make it easier for people to install micro-turbines and I am sure many will be rolled out. The IFA should be consulted on this as it is proactive in trying to develop this area and could encourage increased demand for micro-turbines.

The ability for those with renewable energy generation to export unused energy into the grid needs to be developed. Smart-metering is being rolled out in pilot projects. We need to go one step further and show some vision. We must find ways where unused electricity generated by farms, small businesses and homes can be allowed to be exported to the grid. Currently, there are administrative and technological barriers in place preventing this. These need to be removed. If this is done it will provide an incentive for people to get involved in small-scale renewable energy generation. Once that occurs, demand will increase. Much of it is common sense if the proper policies and resources are put into developing them.

I was fortunate enough to inspect the Marine Institute's pilot projects on wave energy on the Atlantic Ocean. It is an exciting development but very much at an early stage. The two prototypes were capable of producing approximately 30 kw. The Atlantic has much potential as a wave energy source. I accept there are limitations such as ability to connect to the grid and the long-term maintenance and sustainability of the turbines but with proper investment, direction and resources, this area could develop into a large-scale commercial opportunity. Wave energy could be Ireland's niche market allowing it to be at the cutting edge. We must engage with the Marine Institute and assist the entrepreneurs involved to achieve full commercial viability. If this happens, Ireland certainly will be on the renewables technology playing pitch.

Offshore wind farms present another potential source of renewable energy but, again, barriers such as planning issues and relevant licences are hindering its development. The planning and licensing process should be streamlined.

There is an increasing number of solar panels being installed on houses. Unfortunately, we again missed the boat in developing a domestic technology in this area. We certainly can feed into it but other countries have stolen ahead in developing solar technology. The US, Japan and Germany have well-developed products and manufacturing systems. It is still an area that could be developed by Irish entrepreneurs and research and development.

I want to see more development in tidal energy technology. ESB International must be commended on the strides it has made in developing tidal turbine technology with its project on Strangford Lough. There is much potential for development of this technology when one considers the number of tidal estuaries on the island, such as Waterford and Youghal, where the tide constantly ebbs and flows. We need to develop the technology early when other countries may think it is not commercially viable. Using the universities and institutes of technology, we must invest in developing these new technologies to capture a niche market and become a world leader.

When the Siemens hydroelectric project at Ardnacrusha was first proposed, many leading politicians opposed it. One can only guess how much that has paid back in spades to the economy. Turlough Hill in Wicklow is another example. However, there are other smaller places with hydroelectric potential around the country. I come from a place in Waterford called Portlaw, where a Quaker family was generating 300 kW of power from the River Clodiagh in the mid-1800s. Not one kilowatt is being generated from that river now. We are supposed to be leading experts on high technology and renewables. Why not go back to these places where significant generation took place? There were big water mills there at the time. Incentives should be put in place for communities or districts to re-establish previously existing hydroelectric schemes. The Government should consider this.

I will mention a few other items, although I do not have much time. Geothermal energy is a technology used in Nordic countries. They are the people who took that technology and developed it, and are now selling geothermal units into our economy. They are quite expensive in terms of installation but Sustainable Energy Ireland provides grants towards them and they are to be encouraged. Many one-off houses use them for heating. They are not very viable in urban settings because a collection area is required for the heat pump. Certainly, however, it is an area that should be considered. We need to discuss the recycling and reuse of our waste, especially in view of the crisis that has occurred within the last week in the recycling market and the resultant stockpiling of waste. Senator Boyle mentioned earlier that this is an area for development. Rather than exporting our waste we should be examining ways of turning waste to energy.

I mentioned barriers earlier. Research and development, and support for institutes, universities and colleges, are key. We also need to support entrepreneurs, who have already shown vision and used money from their own pockets to try to develop projects in this area. The Government is putting this on the agenda tonight, and we can come up with all the rhetoric we want, but it is about coming up with the money to support research and development. We must give Ireland the opportunity to be a leading country in a niche area of renewable energy.

I welcome this debate and look forward to revisiting the matter in the future.

David Norris (Independent)
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I record the Minister of State's courtesy in yielding to me. I understand he had intended to come in at this point and I am very grateful to him. He may be in a position to respond to one or two of the points I will make, although I may not be here as I have a group of guests coming in. I will read the record.

I welcome this debate. In the last session I handed to the Minister for the Environment, Heritage and Local Government, Deputy Gormley, and his assistant information about a new development of which I was made aware which concerns ignition systems in, for example, car engines. It makes the whole system much more efficient, reduces significantly the consumption of fuel and reduces gaseous emissions. This system has been investigated by a number of firms and governments in Europe. I ask the Minister to find out its status here. Apart from anything else, we could start manufacturing it if other firms are not interested. This is well worth considering as it would have a world-wide market.

I commend the Green Party on putting down this important motion. One of the things that strikes me is that not only might we save resources, energy and money but, because of the ingenuity of some of the bodies in this area — including Airtricity — which have a wonderful dynamic intellectual energy, we might well be able to export some of these inventions. Senator Coffey, who is now, I see, in the Chair, made a most interesting speech. One point I will take up is the problem regarding the recycling plants. It is not that there is an accumulation of rubbish; it is more serious and sinister than that. The plants have done their job in recycling and extracting the materials, and the processed waste is now accumulating as there is no market for it. That is interesting. I ask the Minister of State whether we have a policy or plan to deal with this situation, in which we have a positive innovation which, because of world economic conditions, is reduced in terms of practicability.

I mentioned Airtricity, which brings to mind the question of renewable energy systems, particularly wave power and wind power out in the Atlantic, around the Aran Islands and so on. The Minister with responsibility for the Gaeltacht, Deputy Ó Cuív, was in Inis Meáin for the launch of the new environmentally sustainable harbour but also to consider the development of an integrated wind and ocean powered energy system which, he said, could make the island self-sufficient in terms of energy supply, would create jobs and boost tourism and could even provide models for improved use of natural resources for the whole island of Ireland. Having visited Inis Meáin and Inis Oírr and known their beauty and their cultural relevance, I think it would be a marvellous symbol if we invested in projects of this kind. I know that money is short at the moment, but we need to invest in projects on which we will get a good return.

I look again to another meeting, this time just last month, at which we were told we could in fact help to trigger a new economic boom by investing in this area. This came from leaders of the Irish Venture Capital Association. These are people who have an entrepreneurial spirit and are interested in reality. They are not mad inventors; they are people who are interested not just in assisting the environment, the Government and so on but also in making money. They point out that if they were to install 6,000 MW of wind energy on land and at sea, that would lead to the investment of considerable sums of money, but it would also go a significant way towards making us energy independent and would create 18,000 jobs. We are now hearing that the number of unemployed people has reached a quarter of a million for the first time in about ten years. Would not 18,000 jobs, even over a phased period, be a very remarkable achievement? It would also prevent the emission of 10.8 million tons of carbon dioxide. Thus, not only would it be environmentally friendly but it would also enable us to avoid fines of €324 million per year. There are many reasons we should consider seriously, even in this difficult period, investing in this area. It would also save us from having to import the equivalent of 6 million tonnes of coal at a cost of €671 million. The financial benefits keep stacking up. It is no longer a question of open-toed sandals and tree-hugging — all those phrases that used to be flung by the Progressive Democrats at our friends in the Green Party. It is now a matter of practicality.

Now we have the Green Party in Government and, whatever their difficulties — it cannot be easy — they are beginning to have an impact. For example, the Minister for Communications, Energy and Natural Resources is the Green Party Deputy, Eamon Ryan, who, at the launch of a series of initiatives by Sustainable Energy Ireland, stated:

There is significant potential for the development of a strong sustainable energy industry in Ireland. We need to create a climate where innovative ventures receive the necessary support and assistance required to help them get off the ground. This expansion of SEI's Incubator Programme provides valuable support to start-ups in the sustainable energy sector and I look forward to following the progress of the companies involved.

Then we come back to the things that are so often guyed and mocked by public commentators. In the old days it used to be people running their cars on hen dirt, cows farting in Argentina and all that kind of thing. These were actually supposed to generate methane gas and other materials, which meant they would have been a real hazard for the environment. On the subject of methane gas, housed animals excrete 43 million tonnes of manure every year. I am referring to cattle and sheep.

Paudie Coffey (Fine Gael)
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The Senator has one minute.

David Norris (Independent)
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I will just deal with the sheep and cows then. The methane gas, which can be produced through aerobic digestion technology with a dry fermentation process, has the capacity to provide enough energy every year to more than a million homes in Ireland. A Cork-based company, Kedco, is investigating this. These are the kind of things that need to be done.

The universities are also playing a role in innovation, design and technological exploration. There was a conference in Trinity College about a week ago with a green competition. Five green technology businesses among 70 Irish companies were looking at venture capital. There were representatives from Silicon Valley and leading Irish industries. The founders of Irish wave energy, Wavebob, who have already begun to export their technology to Canada, were present. There were also turbine developments from Queen's University, making gas turbine engines targeted at the renewable energy market, and Phive from Dublin City University who are exploiting the invention of Dr. Bert Ellingboe that uses a plasma technology that considerably reduces the cost of manufacturing solar panels. Incidentally, solar panels are abuzz now. I do not have them in Ireland but I have them in Cyprus. They are remarkable, efficient, clean, noiseless and cheap. There are a series of ideas.

I commend this motion and the Government. Can the Minister of State find out if anything has happened regarding the remarkable ignition system? I can get further information for him.

Paul Bradford (Fine Gael)
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I welcome the opportunity to say a few words on this important area of economic development. It is a sign of the times that whereas we would not have had to deal with such a motion five or ten years ago, there is a growing awareness of the necessity for greener technology and that it can play a role, not just from an environmental perspective but also from an economic and developmental one.

Coming from a rural constituency, I see prospects and possibilities every day for advances in energy from an environmental perspective. There is a question of research, development and cost-benefit analysis. We have discussed the forestry sector in Ireland. It is a win-win from farming, energy and carbon emissions perspectives. It is disappointing, therefore, that the national targets for forestry over recent years have not been met. There are difficulties with grant aid, land price and long-term investment returns. While it may not be relevant to our debate, from an energy and environmental perspective, forestry is an area in which we should be a world leader. We are not making best use of our natural advantage. The Minister of State's colleagues in the relevant Departments should tweak the schemes, rules and regulations to bring our forestry plantation programme back on track and reach the minimal planting standards.

Senator Boyle was involved a number of years ago in the debate on the future of the Irish sugar industry. The Minister of State was also involved. There was a belief that the Irish sugar beet industry, rather than being shut down and jobs and farmers' incomes lost, could have been redirected towards the development of bio-fuels. At the time the broad political spectrum bought into the notion of bio-fuels. A different picture of the bio-fuels industry has emerged since and there is a debate on food versus fuel. We can grow urgently required agricultural crops such as sugar beet and we should look at the bio-fuels industry given that oil prices, although falling, are of long-term concern and oil supplies, being a finite resource, will not be available forever. The food versus fuel argument must be considered but there are major advances in food such as genetic modification technology, although that is another debate. The food versus fuel argument, from a bio-fuel perspective, has not been concluded and we should try to invest significant research and development money to try to progress a bio-fuel industry in this country.

Another environmental technology which springs to mind where this country is concerned is wave power. Progress has been made and research is ongoing. From my limited knowledge, I would have to join the body of opinion that no country in the world is better placed geographically to take advantage of wave power than this country. Strong leadership must be shown from Government. Private sector involvement and money is required, but the Government must put it at the top of its alternative energy agenda.

A certain degree of progress has been made in the area of wind power. There are difficulties at local level, especially with individual farming units and small enterprises. They would be willing to invest a certain amount of money in the provision of micro turbines but the rules governing the return of excess electricity to the grid are not working as well as they should, nor is a proper, flexible financial arrangement in place. There is a legislative obligation on the ESB to take excess electricity when it is available but there is a difficulty with the pricing. We need to examine this.

I know one or two farmers who have erected their own micro turbines and generating systems and they seem to work well. These projects should be the norm and commonplace across rural Ireland, generating energy at no environmental and little economic cost for use on the farm, in the local community and in villages. I hope progress can be made in this regard.

Senator Norris concluded his remarks by referring to solar panels. Ten years ago these were seen as futuristic whereas now they are commonplace. The greener homes scheme worked well to get people to think about alternative heat and energy generation systems. It became a victim of its own success and the funding was reduced. If we look at it from a broader environmental perspective, it is a scheme which needs to remain on the departmental books to encourage the maximum number of people to use some of the technologies. The heat pumps, geothermal systems, solar panels and newer insulation systems are not rocket science, are now commonplace and are understood by a majority of householders. We must try to encourage their use through grant aid and other mechanisms.

There is a clear understanding that green technology can work to everybody's advantage from the point of view of protecting our environment and providing us with urgently needed energy resources at limited economic cost and almost no environmental cost. It is one of the few aspects of Government policy and political debate where there is a win-win solution available but it requires further drive and energy, excuse the pun, from all Departments. The mini-oil crisis of two or three months ago has made people realise we must have these systems in place. The future of our economy, our environment and our planet is dependent on progress in what are reasonable technologies, and they are not rocket science. They are technologies already in force and the more support that can be given by the Government for that form of technology, the better. It is something I support and I thank the Green Party for putting it on the agenda for discussion this afternoon.

Paddy Burke (Fine Gael)
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I welcome the Minister of State to the House. I congratulate the Green Party on putting down this motion and allowing us contribute to the debate on it.

I listened with intent to the various issues raised by Senator Coffey, one of which I raised some years ago concerning hydro generation at local authority level. Local authorities, along with the Office of Public Works, own and control the majority of rivers and lakes throughout the country and that presents them with a golden opportunity. There is no doubt that in some cases they would need assistance but many local authorities could use hydro generation, if only to cover the cost of public lighting in the various local authority areas. Some local authorities have access to major waterfalls and rivers in mountainous areas and elsewhere that would allow them do that. This is an area the Minister should examine.

All of the other aspects have been mentioned by various Senators, whether it is geothermal energy, solar panels or whatever. In that regard, we have not grasped the nettle. There is much scope for improvement in the technology and moving forward with pace. We have fallen behind the rest of Europe in many of those areas and while I commend the Green Party on pushing this agenda, its partners in Government said here on a number of occasions it would take a different route, but the Green Party has pulled it back to the middle of the road, so to speak, in regard to this type of technology.

Planning permission exemptions were granted some years ago for windmills for domestic houses but nothing has happened since. I do not see many, if any, windmills erected around the countryside. There is scope for progress in that regard.

I am delighted the Minister of State is present because he is a practical, hands-on Minister. I want to raise an issue concerning a planning application for the erection of a 100 MW electricity power generation station and all associated site works and services at the former Asahi site near Killala, outside Ballina. The planning permission was appealed to An Bord Pleanála and was refused mainly because of the interpretation of Government policy. This is an area of Government policy the Minister should examine because the reasons for the refusal were as expressed in the White Paper, Delivering a Sustainable Energy Future for Ireland — The Energy Policy Framework 2007 — 2020, which envisages that electricity generation from peat in existing peat burning power stations will reduce over time and, as expressed in the National Climate Change Strategy 2007-2012, supports the co-firing of biomass with peat in existing power generation stations in order to reduce greenhouse gas emissions from existing peat stations. I attended a public meeting recently and none of the parties represented is against this application. There were one or two objections but none of the major parties in Mayo is against this move.

One of the main issues concerns bogs. The bogs in north Mayo where this is based are owned by Bord na Mona or Coillte and were drained 40 or 50 years ago. If virgin bogs were to be drained it would create a carbon sink, which would release CO2 emissions into the atmosphere, but all of the bogs to which I refer have been drained and there is peat in them that will last for the next 100 years. This development, which would cost approximately €200 million, is based on that. The plant would be a mixture of 35% peat and 55% wood. In the long term, most of the wood would come from Coillte as well as being grown locally. Two hundred jobs would be created in the construction of the development and 80 jobs would be retained at the power station. It would use approximately €15 million worth of peat and wood and would entail cheap processing of steam which would be used for local industries. The development has many advantages. They are talking only about the bogs that have been drained already, and not virgin bogs. I beg the Cathaoirleach's indulgence to further the point. These bogs have been drained. Could the peat be extracted from them and burned in the midlands? I believe it could and if that is the case, why can it not be used and processed locally? This is where the conflict arises in the Government policy.

It would be a shame if a project like this were turned down at a time when Mayo or north Mayo is not getting any projects. This is a massive project costing €180 million. Permission has been refused because of conflicts with Government policy but there is no conflict among the political parties within the county. The permission was appealed to An Bord Pleanála by one or two local groups. I hope the Minister will examine the issue.

Joe O'Toole (Independent)
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I welcome the Minister to the House. In his opening statement the proposer of the motion made reference to the lack of representation of some of the groups. He might look at the Government benches, which are not exactly full in terms of its Members taking an interest in this issue. There is a convention that we do not make references to absent Members but, in the interest of balance, I am making reference to absent Members on the Government side. It tends to happen a good deal.

This is an issue on which I have spoken many times in the past ten years in this House. I spent eight years arguing about the lack of Government commitment to the building regulations which were anticipated by Brussels in 1997. We continued to build houses that did not meet the regulations, knowing we should not have done so. Some 250,000 houses in the Dublin city area were built using cavity blocks and these will never meet the standard required, which is a disgrace. Of all the things the building industry did over the years, that was the worst. I do not blame those involved in the industry because they built in accordance with the regulations.

People claim the building industry is concerned with regard to regulations. That is not the case. If developers are required to do something, then they will do it. If, however, there is no requirement, it will not be done. It is impossible to retrofit insulation to houses built using cavity blocks. The Cathaoirleach, who has a background in the industry to which I refer, will understand what I am saying.

I compliment the Green Party on insisting, when it entered Government, that the building regulations be brought into play almost immediately. The advent of those regulations is a welcome development. However, as stated on several occasions, I am of the view that, as happens in certain parts of Spain, it should be a requirement that a method of producing renewable energy be attached to the structure of every house built from this day forward. In that context, I refer in particular to developments involving single houses. The method I would recommend is that which involves photovoltaic solar panels. Such panels are quite sophisticated and are now more efficient than water-heating solar panels. Given that it is hoped to put in place smart meters in people's houses, putting in place photovoltaic panels would be an easy and attractive option.

Photovoltaic panels convert solar energy into electricity in small amounts and this passes straight into the metering system. The introduction of smart meters would mean that people's bills would be automatically reduced. The amounts of energy involved are very small but people would receive credit for producing them. This electricity is used directly in one's home and, as a result, one is obliged to use less of that provided by the ESB.

I recently drove through the Minister of State's constituency and had occasion to use the Carlow bypass. On each occasion on which I drive on a new bypass, I am struck by the same thought, namely, when will the Government recognise that it would be extremely cheap to make provision for rail lines to run alongside motorways? It would not be very difficult to ensure that enough space was provided adjacent to a motorway to allow a rail line to be laid, perhaps retrospectively. Developments of this nature are the way of the future and they are certainly achievable.

Senator Boyle formerly served as his party's spokesperson on finance in the Lower House. I wish to bring to his attention a point I have raised with various Ministers. There is an ongoing row in respect of energy and waste. If someone erects a couple of wind turbines, people are queuing up to have them knocked down. The position is similar when anyone mentions the creation of incineration facilities to deal with waste. We should consider this matter from the point of view of economics. Any community that is prepared to take full responsibility for dealing independently with its own energy and waste requirements should receive a tax break. The provision of such tax breaks would not be difficult. When considering this matter, I examined the energy requirements of the peninsula on which I was born and raised in west Kerry. It is easy to estimate the amount of electricity the ESB provides to a peninsula in any given year. There are a number of ways the energy requirements of the peninsula in question could be met. For example, it could be done by means of the putting in place of wind generation facilities off the west coast. This might upset some people from the east coast who travel to the west in order to gaze upon the Atlantic and who might see a few wind turbines in the distance. That is their tough luck.

We should also engage in a closer examination of incineration. I am not sure where the Green Party stands in respect of incineration but I sense its members hate discussing it. I am not sure, however, that incineration is the answer. I do not believe it is either as bad or as good as certain individuals state. I am certain, however, that it is a great deal better than landfill, particularly in the context of the difficulties that can arise as a result of leakage into the soil, atmospheric emissions, etc. Consideration certainly should be given to the introduction of incineration.

The previous speaker will be well aware that a new bridge was built to span Achill Sound. I do not know if the Minister of State is familiar with Achill Sound but if one sails a boat into it when the tide is changing, one's craft takes off like a bullet. Why was it not possible to put in place a facility to harness tidal energy at Achill Sound? It is almost as if nature designed Achill Sound in such a way that the water whips through at great speed at a particular time and then comes rushing back in the opposite direction 12 hours later.

When proposing the motion, Senator Boyle inquired as to how we might develop technology. We can develop technology only by literally doing so. There is some involvement from the South in what is being attempted in County Down at present. Those working on the project to harness tidal energy near Carlingford are working in the dark to some extent. It is significant and impressive that they are not sure of all the answers. I am extremely excited by the fact that they have achieved so much, that they will monitor what happens from now on and that they will learn as they go. Why are we not doing something similar at Achill Sound? Who in the Government is responsible for examining proposals of this nature? If I spent a month in one of the relevant Departments, the staff there would be working non-stop for six years afterwards and I could go on holiday. There are so many simple steps which could be taken but which we are failing to take.

There is an urgent need to deal with the matter of wind generation. Why is it not possible to include the provision and construction of wind generators under the urgent infrastructure legislation? It is worthwhile and in the national interest that we should become energy independent. It certainly would be attractive to do so at a time when we are at the mercy of oil companies. I cannot understand why sensible people cannot be appointed to indicate areas where it is suitable to construct wind turbines. There always will be some level of interference involved. When one cuts one's lawn, however, one is interfering with nature. We must make compromises as we proceed. I am of the view that we should include wind generators under the relevant legislation.

Senator Boyle also inquired as to what we should do to get ahead. There are two major issues relating to energy in respect of which final development is required. The first involves nuclear fusion as opposed to nuclear fission. I am not in favour of nuclear power but I would like to examine the arguments in favour and against it. I can see how much safer fusion reactors would be when compared to those at Chernobyl and other locations. Nuclear fusion is certainly attractive. A nuclear fusion reactor is being developed in France — at a location adjacent to its nuclear fission reactors — because that country was successful in its bid to host the project. Nuclear fusion will be extremely important for the future.

The second and more important issue — in respect of which, perhaps, greater scientific and intellectual input is required — involves the use of hydrogen. The latter is one of the most useful and easy to use fuels. Hydrogen fuel cells can be transported anywhere and BMW and many of the main car manufacturers have produced prototype hydrogen cars. Hydrogen is one of the most common elements in the world. One need only remove it from water — H2O — in order to obtain access to a great source of energy. Can it be removed from water? The answer is yes. This is being done by means of a process which means that one can almost get as much out of it as one puts in. The cost and energy required to remove the hydrogen from water almost equates to the amount of hydrogen produced by the process.

There are certain aspects which make the use of hydrogen attractive. If the process relating to its production can be further developed, hydrogen will become a source of energy for the future. In addition, when one burns hydrogen, the only waste product is pure distilled water. There is no dirt. There is also a storage facility aspect to this matter. At present in Ireland all the electricity produced at peak level is used. At the lower level, we use the electricity to do other things. The best example would be what happens at Turlough Hill in County Wicklow, where water is pumped up into an elevated reservoir during the night and then allowed to run down during the day in order to produce electricity. The cost of this is 20%; in other words, we get only an 80% return in respect of the energy we use to pump the water up to the reservoir. It is possible to achieve a better return from hydrogen. It would be a better way of saving fuel, energy and electricity at non-peak times. That is something the Government should support in our universities.

That is three options — nuclear fusion, hydrogen extraction from water and energy generated from waste, which has already been discussed by Government. There is much to be done and I welcome this debate. I hope decisions will be taken by the Government.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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I thank the Green Party Senators for putting forward this motion and for giving me an opportunity to contribute to this debate. I can assure Senator O'Toole that in his absence I heard many fine contributions to the debate from both the Government and Opposition benches.

Joe O'Toole (Independent)
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I have a list of the Government speakers, Minister.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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It was very worthwhile——

Joe O'Toole (Independent)
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There is no point. It is like Croke Park — there is nowhere to hide.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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——to be here and to join in the debate. I can only presume that what the Senator said about adding his dynamism to the different Departments will be his contribution to public sector reform.

Joe O'Toole (Independent)
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The Minister can be sure of that, he and I together.

John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Senator Burke raised a particular matter relating to Government policy and the interpretation of that policy. I will bring his remark to the attention of the appropriate Minister. Likewise, Senator Norris raised the issue of ignition systems and his discussion with the Minister, Deputy John Gormley. I will bring his remarks to the Minister's attention and ask him to respond directly to Senator Norris.

I will deal with the other issues raised in the context of what is happening in my Department. The world faces many environmental challenges as we seek to reduce our carbon footprint and to adopt more sustainable ways of developing our economies. These challenges can open doors to new business opportunities for companies in Ireland. In facing difficult economic times, as we are at present, it is more important than ever that we focus on areas of potential where Ireland is well placed to compete and can win new markets. I have seen this regularly on trade missions abroad. What can be won is hugely significant to the companies concerned and to Ireland as we develop new technologies, make them deliverable in the marketplace and embark on research and development.

Senator Norris mentioned that money is short. That is true but it is not a reason, and the evidence confirms, that we cannot exploit the green technology business. A number of speakers mentioned smart meters. The ESB in its pricing and its policy on smart meters needs itself to become smart and engage with the marketplace, where there is a need for significant change in this area. There is significant potential in this sector because of the technologies that are now overtaking everybody. We are catching up with those technologies and trying to build business models around them.

The green technology industry comprises a wide and diverse range of companies. They provide modern solutions for large-scale environmental infrastructural and services projects, and for a growing number of niche and specialised markets which have developed within the industry. While green technology was previously a sector which offered a small range of vital yet basic goods and services such as drinking water supply, wastewater treatment and waste management, the sector has experienced massive growth in recent years. It now encompasses newer industries at the leading edge of technological innovation, such as renewable energy and environmental monitoring.

Today in my constituency the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, and Deputy Mary White opened a new factory which represented a €6 million investment. It will receive a further €15 million from a local firm, which is an indication that despite the economic challenges there are companies that are willing and able to invest in these new technologies. They see its benefits for the future. Perhaps that is the greatest expression of confidence one can have with regard to job creation in this sector. The sector has also seen the evolution, re-invention and innovation of its traditional services. This is exemplified by the development of the recycling industry which has evolved from the traditional waste industry model of collection and disposal.

The development of green technology goes hand-in-hand with a transition from an energy-supply system based on fossil fuels, to a more sustainable energy delivery system. This transition is necessary on economic as well as on environmental grounds. As traditional sources of fuel, such as oil, steadily diminish in quantity and increase in price, the economic need to develop alternative and sustainable energy sources becomes ever more pressing.

Climate change, our reliance on fossil fuels and a decline in the abundance of natural resources are just some of the major issues facing the global community. Demand for solutions to these problems has driven the rapid development of the global environmental goods and services industry. In the coming years, fuelled by stricter environmental regulations and a growing demand in developing regions for essential services, the sector is anticipated to continue its strong rate of growth.

The programme for Government includes a commitment to support the development of environmental technologies in Ireland in order to achieve a win-win situation of improved competitiveness and environmental performance. In the programmes funded through my Department, the development and production of environmental goods and services is supported by the mainstream industrial development programmes of the State agencies, notably Enterprise Ireland, IDA Ireland and Science Foundation Ireland.

In their mainstream programmes, which focus on research and development and training as well as on production, Enterprise Ireland and IDA work closely with individual companies and sectoral groups, offering a range of financial and non-financial supports. They aim to assist companies to increase employment, profitability, competitiveness and export growth. These supports are available to companies in the environmental goods and services sector.

In addition, Enterprise Ireland administers direct financial support schemes that help Irish SMEs to increase awareness of and promote eco-efficiency in their operations. As well as financial support schemes, Enterprise Ireland provides a range of "soft" supports to those companies it is mandated to assist, including the Envirocentre website which provides up-to-date information on a range of environmental issues relevant to industry, regional industrial environmental fora aimed at the SME sector and technical advice to client companies from a range of in-house experts in various environmental fields.

The IDA is working closely with Sustainable Energy Ireland, SEI, on a number of fronts to help FDI clients identify ways to improve their energy efficiency and explore the possibilities of adopting a growing range of renewable energy technologies. The IDA also recently launched a study to examine the options to increase the energy efficiency and sustainability of industrial estates and business parks. While these supports have been available, our industrial performance in the environmental goods and services sector has not matched our success in sectors such as biotechnology and information and communications technology. It is felt that more can be achieved with renewed effort.

Both the IDA and Enterprise Ireland have recently established an internal team to identify enterprise opportunities for Ireland in the newly emerging clean-green sectors. Enterprise Ireland has established its environmental goods and services department to support an expanding portfolio of companies covering the waste, water, energy and services sub-sectors. This dedicated team is being resourced to address the needs and challenges of the sector and includes key sectoral, international market and technical experience. Enterprise Ireland currently has more than 130 clients in the sector. It is encouraging strong start-up activity, with one or two new clients being registered on a weekly basis. Between 2005 and 2007, indigenous exports grew by approximately 250%. Enterprise Ireland believes that by 2020 its clients in the sector have the potential to deliver exports in the region of €650 million and employment of approximately 10,000 people.

The IDA's analysis shows that in 2007 global investment in the green energy industry reached US$148 billion, an increase of 60% from 2006. By 2012 investment levels are expected to reach US$450 billion a year and US$600 billion a year in 2020. Wind and solar have shown the strongest growth, but other technologies such as ocean and second generation bio-fuels are significant sectors. So far, IDA's work on securing additional foreign direct investment in this rapidly expanding sector has primarily focused on the renewable energy, energy efficiency and the enabling technologies sub-sectors. The IDA's vision is for Ireland to become a leading global location for the design, development and delivery of green energy industry technology, products and services. It is focusing on winning investments from multinational companies, growing an innovative industry cluster with a supporting ecosystem, and developing world class research groups and educational institutes.

Since May of this year, Science Foundation Ireland, another agency under the aegis of my Department, has had its remit extended to sustainable energy and energy-efficient technologies. This change implements a programme for Government commitment. It formally and fittingly recognises the increasing importance of energy in strategic Government policy. The extension effectively adds a third pillar to its existing remit in biotechnology and information and communications technology, ICT. It will ensure that the opportunities and challenges in the energy field are underpinned by the knowledge, understanding and human capital that investment in world-class research can provide.

Energy, in terms of its availability, its uses and the potential it offers, is a vital element of our competitiveness and economic development. A significant increase in the numbers of researchers in the energy sphere, facilitated by the expansion of SFI's remit means that Ireland will be well placed to play a key role in what is both a domestic and international opportunity. Prioritising the field of energy at a research level means we are giving ourselves the best possible chance to strategically plan for the medium and long-term future, tapping into expertise in this field and striving to unearth, as yet, undiscovered possibilities. SFI is already supporting a number of projects in the sustainable energy and energy-efficient technologies sectors. I look forward with confidence to seeing the number and nature of these research activities expand.

To further encourage the development of environmental technologies and services, the Department of Enterprise, Trade and Employment has worked with the relevant agencies to complete an all-island study to identify further enterprise opportunities in the global environmental goods and services sector. The report of the study was published last week by Forfás and InterTradelreland. It concludes that rising energy costs, a more environmentally conscious consumer and increased environmental regulation mean the market for environmental goods and services will experience strong growth in the coming years.

The report found that the value of the environmental goods and services sector to the island of Ireland is growing and is currently estimated at €3.6 billion. It has been estimated that the value of the sector was in excess of $600 billion worldwide in 2005 and is likely to exceed $700 billion by 2010 and $800 billion by 2015. A small number of major players exist in this market on the island of Ireland and the market has a high proportion of small and medium-sized enterprises which have established a substantial business presence in the past ten years. However, the report points out that, with some notable exceptions, the island has so far displayed low levels of research and development investment in the environmental goods and services sector. Nevertheless, a growing number of companies have been successful in developing business models which have commercialised research and development-intensive technologies.

The report also found that while a large proportion of environmental goods and services companies are trading locally, some companies have moved to realise opportunities in emerging international markets. Increased participation by indigenous environmental goods and services companies in international activity is considered a priority. On the issue of foreign direct investment, our strong ICT base, green credentials and past experience in attracting FDI should be to our advantage in attracting investment in this sector. However, a targeted approach will need to be taken, focusing on niche areas with the highest potential.

The report found that while a wide range of enterprise opportunities are expected to arise in the growing environmental goods and services sector, the sub-sectors which the report sees as having the greatest potential are renewable energies; efficient energy use and management, including eco-construction; waste management, recovery and recycling; water and waste water treatment; and environmental consultancy and services.

The report includes a number of policy recommendations, which are particularly relevant to today's debate. It argues that public procurement has an important role to play in fostering and promoting the development and adoption of new environmental goods and services. The development of skills through the education and training systems will be central to assisting the future growth of the environmental goods and services sector. In that context, environmental engineering is a critical skill and programmes promoting engineering as a career should be cognisant of the opportunities offered in the environmental engineering discipline.

Environmental research is central to the growth of the environmental goods and services sector. Given that the island of Ireland is starting from a lower base than a number of competitor countries, environmental goods and services-related and applied research, targeted at specific areas of opportunity, should continue to be prioritised for public investment. The report's authors also argue for the continued implementation of environmental legislation which will provide the regulatory certainty needed for enterprises to invest in the sector. They also maintain there is an ongoing role for incentives in developing the environmental goods and services sector.

The environmental goods and services market includes a significant number of specialised start-ups and small companies. These firms face difficulties in accessing start-up and growth finance common to all small firms. Measures to improve seedcorn financing and to remove market failures in access to finance for these firms will continue to be important. Building scale in companies in the environmental goods and services sector has been identified as an issue. Collaborative business networks organised on an all-island basis can play a role in assisting companies to build up scale and capacity. Networks could also prove important in helping indigenous companies to internationalise.

The Government clearly recognises that Ireland has an opportunity to play a leading role in developing a green economy. The Cabinet Sub-Committee on Climate Change and Energy Security is examining how the green economy might best be fostered. Some years ago we harnessed the State's industrial, educational, enterprise and development resources to develop the biotechnology and ICT sectors in Ireland, leading to significant inward investment and highly productive employment. As indicated in the recent carbon budget, the Government intends to take a similar approach to the development of the green technology sector. We have already made significant steps towards embracing this growth area but, to be effective, we must take a whole-of-Government approach. In the coming weeks a number of Ministers who have responsibility in the relevant areas will collectively announce the establishment of a high-level action group to advise on the development of Ireland's green economy. The group will report to Government within four months, setting out an action plan for developing green enterprise in Ireland with a view to contributing to economic growth and providing new, quality employment opportunities in this growing sector. The Government is determined to guide our economic development and well-being onto a sustainable and low-carbon path. The action plan will build on steps which have been already taken and on the report of the study which I have just outlined.

If we are to develop green technology for economic growth in Ireland, we must recognise that the task requires a co-ordinated approach across a number of Departments and agencies. We must ensure synergy, in particular, between energy, environment and enterprise policy in this sector. I am confident that with a strong whole-of-Government approach we can look forward to the development of the sector and its contribution to economic growth in Ireland.

I thank the Cathaoirleach for the opportunity to participate in this debate and all of the Senators for their interesting contributions.

Fiona O'Malley (Progressive Democrats)
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I like the way the Minister of State has linked enterprise, energy and the environment together. That would make for an excellent new Department.

The energy sector is one of the major growth areas. When one looks back at our industrial history, one can see how successful the IDA was in attracting new industries to this country. I saw a very interesting television programme recently on the thoroughbred industry in this country. Ireland is a world leader in this area because it took certain fiscal measures, which is a great credit to us. The programme on the thoroughbred industry was very enlightening and I can only hope we can replicate that success in the green energy and technology areas. I acknowledge that this Government is already well under way, but merging energy, enterprise and environment into one Department is a fantastic idea, particularly given the fact that there is tremendous scope for enterprise in the energy sector.

Previous speakers have already referred to research and development opportunities in the environmental goods and services area. Some of the opportunities are legendary. However, I am a member of the Joint Oireachtas Committee on Climate Change and Energy Security. Frequently people appear before that committee and tell us they face hurdle after hurdle in terms of delivering their enterprises or research and development opportunities. It is deeply frustrating for committee members to hear this. Surely, as politicians, we should be facilitating the path to prosperity and opportunity. We must always remember that research and development is also about failure. Not every single project will be a success. However, if we do not take a risk on some of the opportunities presented, how will we ever learn anything?

The Minister of State referred to Science Foundation Ireland. While I welcome some of the changes that have taken place in that organisation, I would like to see much more of an IDA-type bend to it. Often the scope and scale of the grants from SFI are too small, which is a problem. Green technology is cutting edge and requires larger grants such as those provided by the IDA for major projects. I would be pleased to see such a development, because we are somewhat timid in advancing industry in this area. I have taken an interest in this area for the past seven or eight years and this is the main point I wish to highlight. Undoubtedly we have made significant progress and the Government has responded very well to initiatives during that time. However, there is more we could do.

I refer to foreshore licences. I am certain the Minister of State is aware of the issues, although he comes from an inland constituency so he may not be quite so pestered on the matter. The relevant committee hears from people on the matter all the time. There is a commitment to change the law relating to the granting of foreshore licences, but it has not happened. Significant investment is at risk of being delayed and I have heard a figure of up to €8 billion mentioned in that regard. We cannot afford to lose such investment. We must facilitate investment by streamlining the process of granting foreshore licences. Responsibility for granting licences lies with the Department of Agriculture, Fisheries and Food, although it will soon move elsewhere. A group from the Department visited the committee last week. I was disappointed to sense a lack of urgency in making this change. Some members of the committee made the point that this may be a reaction to decentralisation. When responsibilities change from one Department to another there can be reluctance and resistance. This is precisely why we need a dynamic public service that will facilitate progress, prosperity and development. Nothing should stand in the way of this potential development.

The Government could improve its procurement policies and perhaps the Minister of State has experience of this. When a contract in a Department for computer services is put out to tender, frequently the cost of the project is the principal criterion. Will the Minister of State examine this practice? The least cost submission is not necessarily the cheapest in the long term and energy efficiency is not rated highly enough in procurement process matrix. Could this somehow be revised so that an added weighting could be assigned to energy efficiency? It may well be more efficient to make such a change over the lifetime of the use of the computer system. An energy efficient item may be more expensive on day one, but over the lifetime this may not be the case. We are now more acutely aware of the effects of carbon emissions and our carbon footprint and we must take cognisance of this. These costs must be factored in and I am not certain that is the case at present, but we must examine the possibility. Will the Minister of State ensure the question of energy efficiency is raised at whatever meetings he attends dealing with public procurement contracts?

I commend the motion to the House. This is a very significant growth area for the country and it is where our new opportunities lie. I hope the Government will do everything it can to ensure these new opportunities are delivered and facilitated.

Dan Boyle (Green Party)
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I thank all who contributed to the debate, including the Minister of State at the Department of Communications, Energy and Natural Resources for his lengthy contribution and the many and considered contributions of the Opposition Members, including Senators Cummins, Coffey, Burke, Bradford, Norris and O'Toole. Senator O'Toole is especially keen that I acknowledge as much. I also acknowledge the contribution of my colleagues Senators de Búrca, Carty and O'Malley. I am grateful for the conduct of the debate, which recognised the intent of the motion. The motion recognises the potential that exists and how we can collectively build on it and many contributions reflected this recognition very well.

Senator Norris made the point that we have come some distance from the time when a political debate of this nature would have been derided and largely ignored. That there is such a degree of consensus on the motion gives heart and indicates we are moving in the right direction. Whether we are moving fast enough and devoting sufficient resources is a matter for further legitimate political debates and I believe there will be many such debates in the House.

Senator O'Toole mentioned several possible options. He spoke of nuclear fusion, which he has mentioned previously. I am nowhere near to being a nuclear physicist and I cannot say whether nuclear fusion is likely or possible in the near future. However, current nuclear technology carries a sizable risk of potential disasters and a significant problem in dealing with nuclear waste. Senator O'Toole also asked about the potential of waste-to-energy technology. There is undoubted potential in this area. He concentrated on open funnel incineration. Open stack incineration is the most wasteful technology that exists. Far from representing an alternative to landfill, it merely delays what eventually ends up in it. There are incinerator based technologies such as closed-loop systems and co-firing which offer potential. I am open, and I believe the House would be open, to such debates in the future. Ultimately, the debate is a useful start to what will follow, namely, the promise of the establishment of an action group, to report within four months, dealing with the potential that exists here and now. The impending announcement is especially welcome because it serves as a recognition of what has been lacking in the past, namely, the clichéd notion of joined-up Government. If there is to be progress in this area it must be on the basis of recognising that it is not the special responsibility of any one Department, but of all Departments working collectively to bring about a desired end.

I thank all Senators for their contributions this evening and I look forward to debates of this type in future where we can assess some of the commitments entered in the record of the House tonight and how the country is progressing in meeting the undoubted potential which exists.