Written Answers Nos. 176-187
176. Deputy Catherine Murphy asked the Minister for Communications, Energy and Natural Resources if he will provide information on the exact formula used by the CER to calculate the Public Service Obligation levy; if he will outline the exact formula used to regulate energy prices; and if he will make a statement on the matter. [45393/12]
View answerI have no statutory function in the setting of electricity and gas prices, whether in the regulated or non-regulated parts of these markets. Responsibility for the regulation of the electricity and gas markets is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body. Since 4 April 2011 prices in the electricity retail market have been fully deregulated. Price setting by electricity suppliers is a commercial and operational matter for the companies concerned. Business and domestic customers can now avail of the competitive offerings from a number of electricity supply companies.
With regard to gas, up until 1 October 2011 the CER has regulated the Bord Gáis Energy tariffs for its residential and smaller business customers but price regulation for the latter group ended at that point. The CER still regulates the Bord Gáis Energy tariffs for its residential customers. I have no function in the matter.
For Bord Gáis Energy’s residential tariffs, the allowed revenue is examined twice yearly. These examinations set the BG Energy tariffs for the following six months of the gas year. To set the prices that BG Energy may charge customers, the CER first determines the revenue that BG Energy needs to earn to meet costs efficiently. These costs include the cost of buying wholesale gas, transportation, BG Energy's own supply cost, profit margin and capital expenditure. The most recent Gas Tariff Review (CER/12/146) was published on 4 September 2012.
The timing for complete deregulation of the residential segment of the gas market, as has taken place in the electricity market, is an issue under active review by the CER. Full deregulation leading to further competition will keep downward pressure on prices for consumers. Ireland is however a price taker for gas.
The Public Service Obligation (PSO) levy is charged to all electricity customers. It is designed to support the national policy objectives of security of energy supply, the use of indigenous fuels (i.e. peat) and the use of renewable energy sources in electricity generation, as set out in legislation. The proceeds of the levy are used to recoup, inter alia, the additional costs incurred by electricity suppliers in sourcing, and ESB Power Generation producing, a proportion of their electricity from such generators.
Section 39 of the Electricity Regulation Act 1999 sets out the legal basis for the PSO levy in Ireland. Statutory Instrument No. 217 of 2002 made under Section 39 of the Electricity Regulation Act requires that the CER calculates and certifies the costs associated with the PSO and sets the associated levy for the required period. The PSO levy takes into account the estimated and actual costs incurred in undertaking generation activities which are covered in the relevant PSO legislation. Articles 8 and 9 of Statutory Instrument 217 of 2002 set out the methodology of the calculation of the components of the PSO levy and the estimation of the amount of the PSO levy by the CER.
177. Deputy Eoghan Murphy asked the Minister for the Environment, Community and Local Government if the Memorandum for Understanding agreed with the Troika includes provision for the establishment of certain larger retailers here. [45491/12]
View answerThe Guidelines for Planning Authorities on Retail Planning and accompanying Retail Design Manual which I published on 1 May 2012 are aimed at:
- ensuring that the planning system plays a key role in supporting competitiveness in the retail sector;
- advancing choice for the consumer while promoting and supporting the vitality and viability of city and town centres; and,
- contributing to a high standard of urban design and encouraging a greater use of sustainable transport.
The Guidelines take into account the recommendations of the Forfás study : Review of the Economic Impact of the Retail Cap which is an evidence-based and focused study to analyse the potential economic impacts of eliminating the cap on the size of retail premises and is published on my Department’s website at www.environ.ie.
This study was prepared in response to the requirement in the EU/IMF Programme of Financial Support for Ireland for an economic analysis of the potential impact on competition and consumer prices of eliminating or relaxing the floorspace cap on retail premises .
On foot of the Forfás study , and the public consultation process on the draft Guidelines, the convenience retail floorspace caps were amended rather than eliminated and proposed exceptions to the 6,000 square metres retail warehouse cap may be considered on the merits of individual development applications in the five National Spatial Strategy Gateway cities of Dublin, Cork, Waterford, Limerick/Shannon and Galway subject to the locational criteria set out in the Guidelines.
178. Deputy Kevin Humphreys asked the Minister for the Environment, Community and Local Government when the installation of water meters is going to begin for the initial trial and nationwide; the installers of the meters; the way in which one may apply for a job regarding the installation of the meters; and if he will make a statement on the matter. [45395/12]
View answerThe Government has decided that Irish Water, a new State-owned water company to be established as an independent subsidiary within the Bord Gáis Éireann Group, will be responsible for the metering programme. In addition, the Government has recently approved the preparation of legislation to assign the necessary powers to allow Irish Water to undertake the metering programme. The objective is to have the Bill enacted by the end of this year. Pending enactment, my Department will be working with the local authorities to progress aspects of the metering programme including the carrying out of surveys of domestic connections and will also be progressing the tender documentation for elements of the meter infrastructure. The installation of water meters is due to commence in 2013. Installation contracts will be awarded by Irish Water to private contractors, who will be responsible for recruiting personnel to carry out the installations.
179. Deputy Brendan Griffin asked the Minister for the Environment, Community and Local Government if he is satisfied that all building standards and warranties in the construction of a sports and leisure centre (details supplied) have been provided to Killarney Town Council; and if he will make a statement on the matter. [45402/12]
View answerThe matters raised in the Question might be more appropriately raised with Killarney Town Council. I have no direct function in relation to these matters.
180. Deputy Thomas P. Broughan asked the Minister for the Environment, Community and Local Government if he will provide funding to Dublin City Council to purchase a foam tender for Dublin Fire Brigade in view of the fact that currently DFB is without a foam tender; and if he will make a statement on the matter. [45417/12]
View answerThe provision of a fire service in its functional area, including the establishment and maintenance of a fire brigade, the assessment of fire cover needs, the provision of a premises and the making of such other provisions as it considers necessary or desirable, is a statutory function of individual fire authorities under the provisions of the Fire Services Act 1981 and 2003.
My Department supports fire authorities through the setting of general policy and guidance, and the provision of capital funding, including the recoupment (within the overall funding available) of costs incurred by fire authorities in relation to the approved purchase of fire appliances and emergency equipment as well as construction and upgrading of fire stations.
My Department paid a total of €328,938 grant-aid to Dublin City Council, the final instalment in 2008, in relation to provision of a new Foam Tender. No other proposal in relation to funding for a new Foam Tender for Dublin Fire Brigade has been received.
The current priority for capital funding is supporting the national fire appliance fleet. Dublin Fire Brigade was allocated 2 new appliances under the 2011 Capital Programme. Following agreement of the specification for these Class B fire tender appliances, Dublin City Council are currently undergoing the tender process in relation to their acquisition.
Further investment in the fire service in Dublin will be considered within the current constraints on the fire service capital programme and having regard to the fire authority’s priorities, the spread of existing facilities and the totality of demands from fire authorities nationwide.
181. Deputy Ciarán Lynch asked the Minister for the Environment, Community and Local Government the number of houses in each of the 34 local authority areas; and if he will make a statement on the matter. [45432/12]
View answerWhile my Department collates and publishes a wide range of housing statistics, the full range of which can be viewed on www.environ.ie, it does not collect the data sought in the question. The most recent information relating to the total number of houses per local authority area can be found in the 2011 census data which are available on the Central Statistics Office’s website www.cso.ie.
182. Deputy Billy Kelleher asked the Minister for the Environment, Community and Local Government when stage two of the Castleisland sewerage scheme, County Kerry, will be undertaken to accommodate the 116 houses waiting to be connected to the public sewerage system; and if he will make a statement on the matter. [45439/12]
View answerThe Water Services Investment Programme 2010 – 2013, provides for the development of a comprehensive range of new water services infrastructure in County Kerry. The Programme includes contracts under construction and to commence to the value of over €92 million in Kerry during the period of the Programme. However, the Castleisland Sewerage Scheme was not amongst the priority contracts and schemes selected for inclusion in the current Programme.
The Programme aims to prioritise projects that target environmental compliance issues and support economic and employment growth. A key input to the development of the Programme was the assessment of needs prepared by local authorities, including Kerry County Council, in response to my Department’s request to the authorities in 2009 to review and prioritise their proposals for new capital works in their areas. These were subsequently appraised in the Department in the context of the funds available and key criteria that complemented those used by the authorities. Inevitably, through this process, certain projects that had been proposed had to give way to others that were more strategically important at that time.
Progress under the Water Services Investment Programme 2010 – 2013 was reviewed in mid-2011 and through this process consideration was given to any newly emerging priority contracts and schemes submitted by local authorities for addition to the Programme. No proposal for the Castleisland Sewerage Scheme was received from Kerry County Council in response to the review process.
183. Deputy Joan Collins asked the Minister for the Environment, Community and Local Government if his attention has been drawn to the fact that the Sligo County Manager has informed the members of Sligo County Council that the county council is incapable for providing the 15% matching funds required for the Sligo city water mains rehabilitation scheme and that he has requested 100% funding for the scheme from his Department; if he is prepared to provide 100% funding for such schemes; and if he will make a statement on the matter. [45502/12]
View answerThe primary objective of my Department’s National Water Conservation Programme, which was established in 2003, is to reduce water loss and leakage in the distribution networks to an economic level and to address high levels of unaccounted for water. My Department’s Water Services Investment Programme 2010 – 2013 (WSIP) places a high priority on water conservation. Since 2005 the level of recoupment of approved costs by my Department to water services authorities (local authorities) in respect of water mains rehabilitation or mains replacement projects was increased from 75% to 90% which reflects this high priority.
In February 2012, I gave my approval to Sligo County Council’s proposal to carry out watermains replacement works under the Sligo Water Conservation Stage 3 proposals under my Department’s WSIP. However, in March the Council wrote to my Department setting out the difficulties for the Council in funding its 10% contribution of approximately €467,000 for this scheme.
There is no scope under the current arrangements for my Department to provide 100% funding to Sligo County Council for this scheme.
184. Deputy Joan Collins asked the Minister for the Environment, Community and Local Government if his attention has been drawn to the fact that the recent financial appraisal of Sligo County Council carried out by consultants Grant Thornton confirms that Sligo County Council is experiencing an increased deficit of substantial amounts year on year and that Sligo Borough Council is balancing its budget; if his further attention has been drawn to the fact that the elected members of Sligo Borough Council have refused to accept recommendations to borrow millions of euro for various projects which the county manager was promoting; if is attention has been drawn to the fact that elected members of Sligo Borough Council are opposed to a merger of the borough council with the county council; if he will ensure that a merger does not take place and that the finances and resources of the borough council remain under the control of the borough council; and if he will make a statement on the matter. [45503/12]
View answerI am aware of the financial positions of both Sligo County and Sligo Borough Councils. The recommendations of the consultants engaged by Sligo County Council are currently being considered in my Department.
A detailed policy statement for the reform of local government, Action Programme for Effective Local Government, was published on 16 October following Government approval. The programme sets out, inter alia, policy decisions for a new model of municipal governance including a comprehensive territorial reconfiguration of each county into municipal districts based generally around principal towns. The areas of municipal districts will be drawn up, on the basis of appropriate criteria, for the purposes of the 2014 local elections and following a review of local electoral areas by an independent statutory boundary committee.
185. Deputy Catherine Murphy asked the Minister for the Environment, Community and Local Government the guidance, if any, he has given to local authorities in relation to calculating repayments on shared ownership loans; the reason it is calculated based on the previous years income with no practical provision for income drops in the current year; his plans to review this practice; and if he will make a statement on the matter. [45536/12]
View answerThe general terms and conditions governing the Shared Ownership Scheme have been notified to local authorities by means of circulars. Circular HMS 05/2003, as updated by Circular HMS 06 and 06A/2003, outlined the operation of the Scheme, including details in respect of repayment calculation on the mortgage and rental elements of such loans.
Under the scheme the rent charged on the local authority’s equity in a shared ownership transaction is to cover the funding costs to the Housing Finance Agency which are based on borrowings at the prevailing interest rates. Any difference between the rent and prevailing interest rate is reflected in the capital outstanding on the property, i.e. if the rent charged in any period is greater than the prevailing mortgage interest due on the local authority’s share the purchase price of the outstanding equity will be reduced accordingly.Local authority mortgage holders – including those who purchased under shared ownership – also benefit from extremely keenly priced interest rates which currently stand at around 1.5% below average variable rates available in the market. This is a very substantial differential.
To take account of the current housing market conditions, the Government's housing policy statement, published in June 2011, announced the standing down of all affordable housing schemes, including the shared ownership scheme, in the context of a full review of Part V of the Planning and Development Act 2000. That review is now underway and it is expected to conclude later in the year. Any future changes to legislation governing affordable housing schemes, including shared ownership, will be informed by that review.
186. Deputy Catherine Murphy asked the Minister for the Environment, Community and Local Government if he is satisfied that the mortgage protection policies insisted on by local authorities have not been mis sold; the reason they make no provision for loss of work; if they are regarded as value for money; and if he will make a statement on the matter. [45539/12]
View answerThe local authority mortgage protection insurance scheme is overseen by the Mortgage Protection Committee which is a sub-committee of the County and City Managers Association (CCMA) and is representative of the CCMA, local authorities, the Housing Finance Agency and my Department.Participation in the mortgage protection insurance scheme is compulsory for local authority house purchase loans for social and affordable housing. One of the conditions of the Plan, which is a group policy, is that it is obligatory for all local authority borrowers who meet the eligibility criteria to join the scheme. Altering this condition would have a negative impact on the scheme and increase the cost for all existing borrowers.
The provision requiring that mortgage protection insurance is held by mortgage holders is contained in the Consumer Credit Act 1995. This legislation is the responsibility of the Minister for Jobs, Enterprise and Innovation.
Compared with other schemes of mortgage protection, the local authority scheme covers disability as well as death, and the disability cover is for the full period of the disability and not just 12 months as is the case in the majority of MPI policies available.
The Mortgage Protection Committee seeks to achieve a balance between the most economic rate to be charged for the scheme and the benefits provided. In negotiating a renewal of the scheme, which came into effect from 1 January 2012, the Committee was able to harness the downward pressure on pricing in the economy and secure an average 19% reduction on the rate which applied to the previous scheme.
187. Deputy Ciarán Lynch asked the Minister for Justice and Equality his plans to improve the residential property price register by the inclusion of readily available information such as whether or not the property is a house or an apartment, the number of bedrooms, the square footage, the site area and the local authority area; and if he will make a statement on the matter. [45438/12]
View answerThe information contained in the Residential Property Price Register is compiled from information supplied to the Revenue Commissioners for Stamp Duty purposes. Information supplied to the Revenue Commissioners does not include the floor area, the number of rooms, the site area or the local authority area in which the property is located. Neither is there a distinction made between houses and apartments.
