Róisín Shortall (Dublin North West, Labour)
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Question 266: To ask the Minister for Social and Family Affairs the arrangements in respect of fuel allowance or other measures that are planned to alleviate the extra cost of fuels on poor households as a result of the introduction of the carbon tax. [48186/09]

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Government has announced its intention to introduce a carbon tax and has agreed that before the tax is applied to fuels for home heating, arrangements will be made to assist low income households. Carbon tax on heating products will come into effect from May 2010, while carbon tax on solid fuels will come into effect by commencement order at a later date. The Government is committed to protecting vulnerable households from the impact of energy costs through a combination of supports, investment in improving the energy efficiency of the housing stock and the availability of advice such as "The Keep Well and Warm booklet" and accompanying associated website. Some 132,000 copies of the booklet have been distributed in 2009.

Proper household insulation is absolutely vital in tacking fuel poverty. Initiatives such as the Warmer Homes Scheme, operated by Sustainable Energy Ireland, under the aegis of the Department of Communications, Energy and Natural Resources have a very valuable role to play in that regard, as does funding from the Department of the Environment, Heritage and Local Government to improve the quality of existing local authority housing. In addition, revenue from the carbon tax will be used to alleviate fuel poverty in the home. In his Budget speech, the Minister for Environment , Heritage and Local Government outlined details of €130 million in funding for insulation, €76 million of which will be ring-fenced for low income families.

The Department of Communications, Energy and Natural Resources has overarching responsibility for r the energy portfolio and has convened an inter- Departmental/Agency Group on Affordable Energy to coordinate and drive Government policy in this area. The objective is to ensure shared understanding of the challenges and actions underway and to ensure a fully cohesive strategic approach to delivery of affordable energy initiatives and programmes.

The Inter Departmental/Agency Group has been asked to draw up an Energy Affordability Strategy for consultation early in 2010. This strategy will set out existing and future approaches to addressing energy affordability and will have regard both to the impact of the carbon tax on low income households and the range of supports outlined above in making its recommendations.