Pat Rabbitte (Dublin South West, Labour)
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Question 91: To ask the Minister for Finance in view of the underspend of approximately €35 million on energy efficiency schemes in the Department of Communications, Energy and Natural Resources, his views on the allocation in February 2009 of €75 million for this purpose; if he is satisfied that the system of allocation of grants was sufficiently efficient to ensure the money was spent; the measures he is taking now to address the serious underspend; the discussions he has had with Department of Communications, Energy and Natural Resources regarding an outturn which shows an underspend of over 50% of capital funding in that Department on energy efficiency measures; and if he will make a statement on the matter. [48205/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Government decided, in February of this year, as part of a reallocation of funds across Departments to make an additional €75 million available for labour intensive investment in home insulation and energy efficiency measures. €36.5 million of this additional funding was allocated to the two insulation schemes operated under the Department of Communications, Energy and Natural Resources, by Sustainable Energy Ireland, the Warmer Homes Scheme and the Home Energy Savings Scheme.

My Department monitors expenditure trends by all Departments and was aware that expenditure on energy efficiency schemes by the Department of Communications, Energy and Natural Resources was running behind profile during 2009. This was a matter in the first instance for the Department of Communications Energy and Natural Resources. I understand that due to the need to set up the appropriate systems and resources in advance of its opening the Home Energy Saving Scheme opened to applications on 25 March 2009 and applicants had six months from the date of acceptance of their application by SEI to complete works and draw down the grant. This inevitably meant that it was the Autumn before any significant level of drawdown commenced. I am informed that significant commitments have now been incurred on foot of applications under the Home Energy Saving Scheme and that Minister Ryan is confident that allocations for 2010 for energy efficiency will be spent.

The Government attaches high importance to energy efficiency schemes which is why, in my recent Budget, I allocated €90 million for the Department of Communications, Energy and Natural Resources in 2010 for a National Energy Efficiency Retrofit Programme.