It is my great pleasure to open the Second Stage on this important Bill in the Seanad. I am looking forward to a lively and informed debate. The Bill's enactment will impact on the vital issue of sustainable use of energy. It will also impact on the need to supply energy to a rapidly growing economy without continuing adverse effects on the environment.
The principal objective of the proposed Sustainable Energy Ireland Bill, 2001, is to establish the necessary legislative framework to allow the Irish Energy Centre to operate independently of Enterprise Ireland as a statutory body and to effect a change of title for the centre to the Sustainable Energy Authority of Ireland, which will be commonly known as Sustainable Energy Ireland.
The Irish Energy Centre was established in 1995 as a joint initiative of the Department of Public Enterprise and the agency formerly known as Forbairt, now Enterprise Ireland. The centre was established as a unit within Enterprise Ireland and underpinned by a memorandum of understanding between the Department of Public Enterprise and Forbairt. The original memorandum of understanding was intended to be an interim measure only. Establishing the centre under statute is an important element in its evolution into an independent operationally autonomous agency. This legislation will serve to clarify and improve the strategic direction of the centre and allow it the flexibility to develop its full potential as the significant implementing agency in the Government's strategy on climate change and promotion of energy efficiency measures and renewables. The enactment of this legislation will be an important step in the context of giving real intent to the Government's energy efficiency policies in a liberalised energy market.
There are other factors in the Government's desire to establish the centre as a separate entity. Following the amalgamation of a range of different agencies under its umbrella in 1998, emphasis is now being placed by Enterprise Ireland on its core industrial development functions. While technically a joint venture between Enterprise Ireland and my Department, the Irish Energy Centre is independent in the exercise of its functions. Neither Enterprise Ireland nor its parent Department, the Department of Enterprise, Trade and Employment, has any substantive input into its operations. Enterprise Ireland provides some support functions, such as human resource management.
Another factor is that we are learning from experience abroad. The practice across the EU has been to establish similar agencies on a stand-alone basis with a clear identity and mandate, with their policy direction coming from energy ministers. Such agencies have operated successfully and I am confident that the new Energy Authority will also be a success.
The publication of the Green Paper on Sustainable Energy by the Department of Public Enterprise in September 1999 proposes a framework for energy efficiency in Ireland. The Green Paper sets out policy for both limiting energy related COf8>2 emissions and promoting the use of renewable energy sources to help ensure Ireland's compliance with the UN Kyoto Protocol on reducing greenhouse gas emissions. Many will be aware of recent developments in the negotiations on the Kyoto Protocol. Difficulties with ratification of the protocol have been widely reported in the news this year, principally because of the opposition of President Bush. The new US administration considers the protocol an unfair and ineffective means of tackling climate change, potentially damaging to the US and global economies.
The Government here, through the Minister for the Environment and Local Government, has expressed its deep regret at this US stance and has reaffirmed Ireland's and the EU's commitment to making sure Kyoto remains the firm basis for future negotiations and actions to reduce emissions. The EU member states are committed to maintaining a firm common position on the protocol and are looking forward to engaging in meaningful dialogue at the resumed conference of the parties in Bonn in July.
Under the terms of the Kyoto Protocol, Ireland has agreed to limit greenhouse gas emissions to 13% above 1990 levels. Ireland's greenhouse gas emissions are currently over 20% above 1990 levels. The latest ESRI forecast suggests a rise of 27% above 1990 by 2010 if we continue on a business as usual basis. Energy related C0f8>2 emissions accounted for 55% of greenhouse gas emissions and are forecast to increase to 63% in 2010 if we do not devise policies and measures to abate such emissions. These are stark statistics, which we cannot ignore. There is too much at stake for us and for future generations. The Government's recently published national climate change strategy establishes the framework within which we will seek to achieve the necessary cuts in emissions. The strategy foresees, as does the Green Paper on Sustainable Energy, a major implementing role for the centre.
The centre is currently a unit within the Forfás-Enterprise Ireland family of agencies. Conscious of the need to have the necessary institutional arrangements in place immediately on enactment of this legislation I appointed an interim board for the centre last December. Professor Frank Convery of the environmental research unit in University College Dublin is chairman of the interim board. I am delighted at the progress made by this board in carrying out its mandate to oversee the transition of the centre from Enterprise Ireland and examining institutional issues such as structure and staffing arrangements. The interim board has had a number of meetings and is currently meeting on a monthly basis to progress the many issues that arise. Considerable work has been done in developing the work programme for the next three years. The bulk of that programme is based on the funding provisions of the economic and social infrastructure operational programme within the framework of the national development plan.
The interim board was instrumental in ensuring that a professional study was carried out to ensure a structure and staffing level appropriate to the proposed mandate for the new authority. As a result the centre has sanction for a new structure and 30 additional posts which will bring the staff complement to 50. The first phase of the process aimed at recruiting ten of those much needed extra staff is currently in progress.
I want to mention the position of the existing staff of the centre. The legislation provides that all the staff currently working in the Irish Energy Centre will become members of the staff of the new authority. The current staff of the centre are either permanent or contract staff of Forfás. I am satisfied that the provisions of the legislation in relation to tenure of office, terms and conditions, salaries and superannuation ensure that all current staff of the centre transfer to the new authority with conditions no less favourable than those which they enjoyed as members of the staff of Forfás. It is only to be expected that some staff might have concerns regarding these issues and others such as career paths, promotional outlets and opportunities for training and development. These questions must be addressed quickly and with openness and frankness as to the opportunities that transfer to the new authority will present.
In recognition of that need my Department has set up a consultative forum to address these issues. The forum which meets once a week consists of senior officials from my Department, the relevant trade union representatives of the staff and Enterprise Ireland. I believe that with the necessary dialogue and goodwill on all sides, these matters can be resolved to the satisfaction of the existing staff. What we are endeavouring to achieve is to provide the utmost clarity for existing staff of the centre. I assure this House and the staff in question that as an independent body under the aegis of my Department the ethos of the new authority will be one with a strong human resource focus and a commitment to the proper training and development of all the staff. This is a situation where we can truly say that the experience and expertise of the staff is the most valuable resource of the centre. We will ensure that the new authority will manage and develop that resource accordingly.
I wish to state my personal appreciation of the staff of the Irish Energy Centre. Most of us are fully aware of the excellent work they do in the area of energy awareness, through energy awareness week, car free day and their excellent schools programme. Their work over the period of the economic infrastructure operational programme has been very worthwhile. The energy efficiency investment support scheme which the centre designed and implemented disbursed grants of over £7 million to support 217 projects. These grants leveraged £31 million in private sector investment. Indicative energy savings on these projects amounts to £8.5 million per annum with an average payback on the investment of four and a half years.
The centre's self-audit scheme is also an indicator of significant achievement by the staff. Senators will be aware that part of the centre's current mandate is to promote the development of an energy efficient economy with particular regard to improving competitiveness and contributing to the wider awareness of energy efficiency opportunities. The annual self-audit of energy accounts scheme has broken new ground in the Irish industrial sector. A network of high energy consuming companies with individual energy bills of not less than £500,000, or 635,000, per year has been established under the direction of the centre and the scheme is in its third year of reporting the members' management programmes for energy reduction. The total energy usage of the member companies accounts for 33% of total Irish industry energy consumption. Membership in 1999 increased from 65 to 72 companies and members have shown a commitment to active energy management and public reporting of their results.
The overall results for 1998-99 show an energy decrease of 296 gigawatt hours, which resulted in a decrease of 124,341 tonnes in C0f8>2 emissions. I am satisfied that this scheme will continue to develop alongside other programmes that will be designed to reduce energy usage over the period of the current operational programme up to 2006.
I look forward to the new work programmes of the centre getting under way. I have already mentioned the important work being carried out in the area of energy awareness. I believe that many Senators agree that much can be achieved in this area. There is no cheaper solution to the energy emission problem than the conservation of energy and the careful use of energy by us all. I firmly believe that it is possible to change the lifetime habits of a society. I am satisfied that with effective awareness campaigns and proper education the harmful effects of wasteful use of energy can be reduced.
Speaking of education, this is where I believe that real progress can be achieved. I would like to see a comprehensive campaign for schools developed for teachers and students starting with the junior schools and working up to secondary and beyond. I know and am pleased that the centre is working hard on developing its website and making effective use of the Internet to promulgate the message. We are all aware of how adept present day children are in the use of modern technology so I applaud the efforts of the centre in this regard. I look forward with great anticipation to future developments in the centre's schools programme.
I want to address some aspects of the Bill, other than those relating to staffing and terms and conditions of employment. The functions of the new authority are set out in a comprehensive way in section 6 of the Bill. The functions of the authority are essentially to promote and assist energy efficiency measures in the supply, demand and use of energy across the whole economy, to assist and promote the development of electricity generation from renewable sources and, importantly, to advise Ministers in all matters relating to its functions. In this respect I would foresee that the authority would provide crucial input to future policy development in the area of sustainable energy.
In furtherance of its remit, the new authority is being given a range of powers. These are set out in subsection (2) of section 6. I am confident that the powers proposed under this section are comprehensive. However, I am proposing in section 7 of the Bill that the Minister of the day may, by order, assign to the authority new functions within the energy family. I am making it a requirement, however, that the relevant Minister bring a motion before both Houses of the Oireachtas and that the order devolving new functions will not be made until passed by both Houses.
The accommodation needs of the new authority are dealt with in section 20. For clarity, I propose to set out the background to its current accommodation. The centre is located in a purpose-built energy efficient building in the Enterprise Ireland complex in Glasnevin. The site is wholly owned by Enterprise Ireland. Under the original memorandum of understanding, which established the centre, Enterprise Ireland under took to provide the necessary accommodation. A site was provided and a specially designed building was constructed on the site with European Union funding.
A number of issues now arise in relation to the Glasnevin site. First, Enterprise Ireland intends to relocate its own entire staff currently located in a number of offices throughout the city to the Glasnevin site. As one would expect, this will result in an evaluation of the buildings, structures and accommodation already on the site. Second, the current Irish Energy Centre building will need to be extended to house the proposed increase in staff. Third, there is the consideration that the new board may wish to ensure its independence from Enterprise Ireland physically as well as statutorily.
In response to the many considerations affecting the Glasnevin site, it was necessary to find a solution which, on the one hand, would ensure that the authority would have accommodation for its staff on vesting day and, on the other hand, would enable Enterprise Ireland to retain ownership of the entire site. I decided, with the approval of the Government, that the new authority should be given a licence to remain in its existing building, at least until there is greater clarity in relation to the intentions of all the main parties towards development of the site.
Needless to say, the accommodation issue is exercising the minds of Professor Convery and the other members of the interim board and I understand from the chairman that the issue is high on the interim board's agenda. It is more likely, however, that the new authority will move quickly to find suitable accommodation outside the Glasnevin site. Section 20 provides that the authority is to be given a licence to remain as tenant with effect from vesting day.
I now turn to the financing of the new authority. The Bill, in section 21, provides that the Minister shall from time to time, with the consent of the Minister for Finance, advance to the centre out of moneys provided by the Oireachtas such sums as the Minister may determine for the purposes of expenditure by the centre in the performance of its functions. Provision is made in the National Development Plan 2000-06 for an allocation of £146 million over the duration of the plan for the purpose of increasing energy efficiency and promoting renewable energy related initiatives. This funding is intended to support the measures outlined in the Green Paper on sustainable energy. Particular emphasis is placed on the promotion of energy efficiency measures, research and development, renewable energy and combined heat and power as well as energy efficient houses and public sector buildings. An element of that funding relates to the day-to-day activities of the new enlarged centre. Funding arrangements for the new authority are, therefore, largely in place.
I look forward with enthusiasm to the establishment of the new authority. The interim board has already given us a feeling for how energetic the new agency will be. I am encouraged by the enthusiasm being shown by existing staff and the boost that will be given by the infusion of new staff over the coming months. I am more satisfied than ever that we are going in the right direction. I commend the Bill to the House.