I very much welcome this motion and thank Senators Butler and Brady for their support and endeavours in tabling it. I acknowledge the contributions from the other side and Senator O'Reilly's support. He is a little critical of the timing but in general he is very supportive of what is proposed.
The national insulation programme for economic recovery, launched by the Minister for Communications, Energy and Natural Resources, Deputy Ryan and the Minister for the Environment, Heritage and Local Government, Deputy Gormley, on 8 February is a progressive and economically prudent programme aimed at substantially addressing the legacy of older housing with poor standards of energy efficiency. It is fitting and right that we discuss the matter in this House. While the programme offers many advantages to various sectors, and I will go on to highlight these, it is important to note that this programme has been crafted following much considered input over time from different Departments, State agencies, local authorities, local energy agencies, community-based organisations and, not least, following well-founded, well-researched input from many Members across all parties in these Houses.
Energy policy, above any other, should be a model for cross-party consensus. Ireland's relatively remote geographical position means it is incumbent upon us all to develop visionary yet simple, collaborative rather than compromised, energy policies that will allow us to safeguard our security of energy supply in the face of uncertain and volatile world markets. It is our collective duty to protect the vulnerable members of our society for whom the cost of heating their homes is a significant burden. This programme is a major step forward in tackling this issue. Even for those on average means, the cost of installing measures to improve the energy efficiency of their homes can be a significant barrier to wider take-up. This financial barrier to a wider uptake in measures has been a prohibitive factor for too long. Again, this programme tackles this issue head-on.
The national insulation programme for economic recovery is essentially a three-pronged approach to addressing the legacy of older housing with poor energy efficiency standards. The home energy saving scheme is the largest element of the programme. The pilot programme, which Sustainable Energy Ireland undertook last year and which tested the business case for State support to householders upgrading their homes' energy efficiency, found that there was a sound business case and a considerable appetite for such a scheme. The Government has responded by allocating a budget of €50 million in 2009.
This scheme has the potential to support the up-grade of in excess of 27,500 homes in 2009. Sustainable Energy Ireland estimates that demand for this scheme could ultimately exceed 100,000 homes. Home owners can expect to save up to €700 per year on their energy bills if they install the full suite of measures available under the scheme. The scheme offers grants of up to 40% of the typical cost of energy efficiency upgrade measures. The full range of measures and the associated grant level is as follows: roof insulation — €250; cavity wall insulation — €400; internal wall insulation — €2,500; external wall insulation — €4,000; high efficiency boiler with heating controls upgrade — €700; heating controls upgrade only — €500; and building energy rating assessment — €200.
Obviously, home owners will have to part-finance the work carried out. I call upon the country's lending institutions and energy service companies to associate themselves with the scheme and offer innovative, competitive solutions to what will be a very significant market. A question was asked about the banks coming on board and providing the necessary funds. That is one of the issues that was discussed with the banks in the recent negotiations and I understand that significant funds will be provided specifically for this purpose.
The scheme has been launched now to allow installers who wish to participate in the scheme to register with SEI. Registered contractors are required to sign up to a code of conduct and comply with a range of terms and conditions to ensure the quality of work carried out under the scheme. They will also have to carry a specified level of insurance and be fully tax compliant. Sustainable Energy Ireland will implement a quality assurance and inspection programme to ensure compliance with these requirements. This scheme is a wonderful opportunity for contractors, electricians, plumbers and labourers to maintain and create employment. Sustainable Energy Ireland is now inviting calls from anyone wishing to register as contractors on the scheme to contact it on 1850 927000 or at hescontractor@sei.ie.
The scheme itself will be open to anybody owning a house that was built prior to 2006, and home owners and landlords will be able to apply under the scheme from next month. In the meantime, home owners can now register their interest with SEI on 1850 927000 or at hes@sei.ie. Home owners may also arrange to have a building energy rating carried out immediately if they wish, but this is not a requirement for participation in the scheme. However, it is important to note that home owners should not take action on the other measures until they have received grant approval from Sustainable Energy Ireland.
The second element of the national insulation programme for economic recovery — the warmer homes scheme — is designed to assist private households on low incomes, such as those in receipt of fuel allowance and invalidity or disability benefit. The Government is committed to protecting vulnerable consumers from the impact of high energy costs through a combination of institutional supports and investment in improving the energy efficiency of the housing stock. In recent years 20,000 homes have been substantially upgraded by the warmer homes scheme. In 2009, €20 million has been made available to the scheme. This greatly increased level of funding is expected to support energy efficiency interventions in up to 15,000 low income homes in this year alone.
Sustainable Energy Ireland, in consultation with the ESB, Bord Gáis and other interested parties, is reviewing the operation of the scheme with the aim of ensuring that maximum impact is delivered from the enhanced funding. The scheme provides for the installation of a range of energy efficiency measures, including cavity wall insulation, attic insulation, boiler lagging jackets, draught proofing measures and energy efficient lighting. Advice is also provided to householders on minimising energy use. The warmer homes scheme provides these measures free or at a nominal cost to the householder.
There are 20 community-based organisations currently delivering the warmer homes scheme, which represents just over two thirds of the country. Under an initiative to extend the scheme nationwide in 2009, Sustainable Energy Ireland plans to commence the introduction of new community-based organisations to the scheme from the end of March 2009. A number of improvements to the warmer homes scheme are gradually being introduced in this quarter, including a new freefone service designed to assist eligible home owners in identifying their nearest provider. If outside of current coverage, their details will be recorded and notified as soon as the service becomes available in their area. In addition, a new website will be launched to allow home owners, neighbours and relatives to find out more information about the warmer homes scheme and other grant schemes available in their area. Further information on the warmer homes scheme is available by calling 1800 250204 or by e-mailing warmerhomes@sei.ie or by visiting www.sei.ie.
In terms of institutional supports for vulnerable energy users, last year the Minister, Deputy Eamon Ryan, established an interdepartmental group led by his Department and the Department for Social and Family Affairs, which also includes the Departments of Finance, the Taoiseach, the Environment, Heritage and Local Government, and Health and Children, the Commission for Energy Regulation, SEI, the ESB, Bord Gáis and the Institute of Public Health. This intensive co-operation and co-ordinated working by all the relevant Departments, agencies and the utilities ensures the effective delivery of a comprehensive approach to addressing energy affordability.
The interdepartmental group has been conducting a series of meetings with representative groups and agencies, including Age Action Ireland and Energy Action, in addition to relevant groups and agencies in Northern Ireland. The group has finalised an advisory booklet to inform and assist those seeking advice about supports relating to energy affordability. The booklet will be published this month alongside a new complementary website and will be widely disseminated.
The third element of the national insulation programme for economic recovery will involve providing similar energy efficiency upgrade measures in social housing. The Minister for the Environment, Heritage and Local Government will make further announcements on this element of the programme in due course.
The national insulation programme for economic recovery has the potential to contribute to the creation of 4,000 direct and indirect jobs, thus contributing to the Government's priority objective of maintaining and creating employment. The programme affords us the opportunity to substantially address the energy efficiency shortcomings in our homes. By availing of the many measures on offer, we can save energy, significantly reduce our energy costs, maintain and increase comfort levels in our homes and play a part in reducing Ireland's CO2 emissions. By being more energy efficient, we can use less energy and ensure a greater security of supply in the future. Under this national insulation programme we will use less energy but, importantly, in the current difficult economic circumstances, we will help foster the growth of a new green energy sector that can ultimately employ many thousands of people.
The benefits of the scheme are obvious. Most people will use less energy and, as a result, spend less money. Home owners will be warmer and will have reduced electricity bills. I have also mentioned the employment aspect. We expect up to 4,000 jobs to be created as a result of the scheme. Apart from those obvious benefits, I must mention the awareness this will create among people. For a long time people have been unaware of the energy they use in their homes and the habits they have developed over the years, many of them bad. The introduction of smart metering will be a great education. Its roll-out has not happened as quickly as we would wish but the indications are that as a result of providing people with smart meters they almost immediately change their habits. The times they consume electricity change and they become more conscious of their use of energy. The roll-out of smart meters to homes throughout the country will create a significant change and a major reduction in the use of electricity.
Mention was made of renewables. We all are much wiser now. It is not that long ago when we saw the price of oil increase to $147 a barrel and it has certainly changed the focus of people. Our future is very much in renewable energy and much of our attention in recent times has gone into developing the technologies and assisting people in the creation of new renewables. We have set ourselves ambitious targets for the use of renewable energy and much progress has been made.
As an island nation, we are dependent on foreign countries for the importation of our energy needs. We import over 90% of our energy. Apart from being dependent on other countries, we do not have much control over the cost of energy. As a result, energy, whether it be for use in homes or in business, is a big factor and we are certainly at a disadvantage in comparison to many other countries. For that reason we have placed enormous focus on the area of developing renewables and assisting people in developing alternatives to gas and oil.
The national energy efficiency action plan, which the Minister, Deputy Ryan, will publish shortly, will map out how Ireland will achieve energy savings of 20% across our economy by 2020. These savings will be achieved by a combination of policy interventions across all sectors. The national insulation programme is indicative of the robust economically sound policies included in the plan. It is by the implementation of the national energy efficiency plan that Ireland's energy future will be shaped and safeguarded.
I am confident that all Members of this House will back this process now by actively promoting and supporting the national insulation programme.