Dáil Éireann Debate, Thursday - 19 July 2012
1Deputy Niall Collins asked the Minister for Communications; Energy and Natural Resources the number of jobs supported by better energy homes now; the equivalent number in July 2011; and if he will make a statement on the matter. [36214/12]
View answerThe Sustainable Energy Authority of Ireland, SEAI, administers the better energy programme, which includes the better energy homes and warmer homes and workplaces schemes. Exchequer funding of €76.146 million has been allocated to the better energy programme in 2012, which is projected to deliver 597 GWh in energy savings this year and is the equivalent of €34.2 million in the value of energy saved. The original budget allocation for the better energy programme for 2011 was €60 million. This was supplemented by the Government on taking office with an additional €30 million under the jobs stimulus package, with the total outturn for 2011 amounting to €94 million. Based upon the SEAI's analysis, the funding supported the retention of more than 5,700 jobs for 2011 as a whole. While the measurement of jobs created and retained is complex, the SEAI continues to monitor the relative labour intensity of the better energy programme.
Since the start of 2012, there has been a notable decrease in applications across all measures in the better energy homes programme. Analysis by the SEAI suggests a number of factors have impacted upon the level of new applications, including milder weather, reduced disposable income and some misconceptions about the continued availability of grants. The SEAI continues to analyse the trends and underlying causes to inform decisions about the programme in the context of budget 2013. In light of that, and to optimise the use of remaining funding for the rest of the year, I recently approved a reallocation within the better energy budget to enhance the funding allocated for better energy warmer homes and better energy workplaces. This reallocation will support the retention of jobs in the retrofitting sector by redirecting funding towards areas of continued strong demand and related levels of economic activity in the sector. It is the case that the notable decrease in better homes applications will have an impact, as yet unquantified, on the retrofitting industry.
The Minister indicated that falling demand was one reason for his recent decision to divert some of the budget. What level of demand is apparent currently in terms of the quantum of applications on hand? Is the Minister minded to continue the scheme for the foreseeable future? Everyone is aware of the benefits of the scheme but the circumstances of some people will change and they might find themselves in a position where they will be able to avail of the scheme even though for various reasons they have not been able to do so to date. Will the scheme continue to exist in 2013 and 2014?
Is the Minister minded to continue the parallel scheme that is running for recipients of the fuel allowance? I do not recall the names of the agencies involved but in Limerick a body in Southill provides warmer homes funding for people who do not go through the SEAI scheme. They go through the social welfare route with the minimum criterion that they are in receipt of the fuel allowance.
The position is that the SEAI is still doing research to establish why there are fewer applications. It is undoubtedly the case from previous studies that if the winter is very bad, the spike in applications is evident for anyone to see. Therefore, the mild winter is plausible as a part explanation but it is not the full explanation. It would appear that people are reluctant to put their hand in their pockets to match the grant aid. The grant aid on offer is based on the presumption that people will come up with their own investment in insulation and retrofitting.
On whether it is the intention to continue the scheme, the programme for Government commits to making the transition from a grants-based system to a pay-as-you-save model, a financial model that envisages repayment over a number of years. It could be three or four years but it has not been fixed yet. The payment will be made essentially from the savings that will accrue. The intention is to continue the scheme for 2013, which is what interests Deputy Collins.
My initial view was that minor adjustment to the grant levels for some functions might explain why there were fewer applications, but that does not explain it because where the grant did not change at all, the number of applications have declined by exactly the same amount. The matter still bears some research.
Is the remaining budget for the rest of this year sufficient to meet the applications to the Department or the SEAI? Has the Minister left people hanging? I hope the answer is "No".
The answer is "No". In fact, we will direct any extra money to the workplace scheme in particular, where there is increasing awareness and uptake on the part of SMEs. It is not the case that there are not many householders in the queue. It is just that the numbers have fallen. There are many in the queue and they will not be left hanging.
