Wednesday, 15 Jan 2014

Written Answers Nos. 438-53

Sale of State Assets

Questions (438)

Maureen O'Sullivan

Question:

438. Deputy Maureen O'Sullivan asked the Minister for Communications, Energy and Natural Resources if half of the proceeds from the €1.2 billion sale of Bord Gáis will be invested in capital infrastructures such as Irish Water which was set up under Bord Gáis, if this means he is discounting the price and offsetting the costs for infrastructure that they have to pay to the contractor (details supplied); the way he will prevent gas price increases in Ireland where competition is significantly less than in Britain; and if he will make a statement on the matter. [55205/13]

Written answers

Minister for Communications, Energy and Natural Resources

I announced in December last that a preferred bidder has been selected in the sale process for Bord Gáis Energy. The proceeds from this sale, when they become available, will be available to Government to support stimulus measures in the short term, with 50% intended to be used, in the longer term, to retire debt. The Infrastructure Stimulus Plan includes an Exchequer element to be funded by part of the proceeds of the State asset disposal programme. A list of infrastructure projects to be funded under the Infrastructure Stimulus Plan is available on the website of the Department of Public Expenditure and Reform. There is no current proposal for water infrastructure investments to be funded by the proceeds of the State asset disposal programme.

I understand that Irish Water’s costs in the coming years will be funded through a mix of revenue from the domestic and non-domestic sector, third party finance and State support which may be in the form of both equity and subvention. Irish Water will pay contractors in line with the terms of contracts entered into.

In respect of gas prices, I have no statutory function in the setting of gas prices, whether in the regulated or non-regulated parts of the market. Responsibility for the regulation of the gas market is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body. The position is that the CER regulates the Bord Gáis Energy tariff for its domestic customers. Prices in all other segments of the gas market are deregulated.

The CER continues to keep deregulation of the domestic consumer segment of the gas market under review. In its most recent review of the market the CER has concluded that the criteria for deregulation had not all been met to allow for the immediate deregulation of the domestic gas market. Until all deregulation criteria have been met the CER will continue to regulate the Bord Gáis Energy retail tariff.

Gas Exploration Licences

Questions (439)

Michael Colreavy

Question:

439. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources the consultation there has been between authorities in Northern Ireland and the Republic of Ireland regarding plans for test drilling by a company (details supplied) in County Fermanagh, which is reportedly due to begin in the next few weeks; and if he will make a statement on the matter. [55210/13]

Written answers

Minister of State at the Department of Communications, Energy and Natural Resources

With regard to the broader issue of unconventional gas exploration, officials in my Department have had regular contacts with their counterparts in Northern Ireland in relation to onshore exploration authorisations in the two jurisdictions. These contacts have facilitated an exchange of information in relation to the nature of the activities that have been licensed and their associated timelines. There has also been a sharing of information in relation to the regulatory processes that apply in each jurisdiction.

The focus of these engagements has been on information sharing and not on seeking to agree a joint north south policy. In the case that a project in either jurisdiction were to advance to the exploration drilling stage then it would be subject to the regulatory processes that pertain in that jurisdiction.

It is the case, however, that the environmental consideration of any proposed project in either jurisdiction will be subject to EU environmental legislation, including the provisions relating to consultation across borders where there could be a potential negative environmental impact in a neighbouring jurisdiction.

It should be noted that both the Northern Ireland Environment Agency (NIEA) and the Geological Survey of Northern Ireland (GSNI) are members of the Steering Group overseeing the Environmental Protection Agency's comprehensive study on the environmental impacts of Unconventional Gas Exploration and Extraction in Ireland.

With regard to the specific issue of proposed drilling by Tamboran Resources in County Fermanagh, my officials have been informed by their counterparts in Northern Ireland that no application to drill has been received from Tamboran Resources to date.

Renewable Energy Exports

Questions (440)

Willie Penrose

Question:

440. Deputy Willie Penrose asked the Minister for Communications, Energy and Natural Resources if his attention has been drawn to a statement made in October 2013 by United Kingdom Minister of State at the Department of Energy and Climate Change, Mr. Greg Barker MP, that there are enough wind projects in the system, there is no requirement for anymore onshore expansion and the big expansion for same should be offshore where there is scope for larger projects and whereby, with the projects in the system and under consideration in the planning process, they had enough to achieve their 2020 targets; in this context, if he will clarify the impact of this statement on the intergovernmental agreement, IGA, on export of wind-derived electricity to the United Kingdom; given that the IGA is still in the process of being evaluated, if he will also clarify the scope of the associated cost basis analysis in terms of cost and revenue elements; and if he will make a statement on the matter. [55242/13]

Written answers

Minister for Communications, Energy and Natural Resources

In January 2013 the United Kingdom Secretary of State for Energy and Climate Change, Mr. Edward Davey MP, and I signed a Memorandum of Understanding on energy cooperation. That Memorandum sent a strong signal of our shared interest in developing the opportunity to export green electricity from Ireland to Britain. A programme of work is underway to establish if it is mutually beneficial for Ireland and the UK to enter an Intergovernmental Agreement in 2014 to facilitate such renewable energy trading. Ultimately this is likely to be decided based on the economic advantage accruing to both countries. The discussions are handled by the Secretary of State for Energy and Climate Change. I understand that Mr Barker M.P. is no longer minister for Energy.

Renewable Energy Generation

Questions (441)

Jerry Buttimer

Question:

441. Deputy Jerry Buttimer asked the Minister for Communications, Energy and Natural Resources the supports in place for companies that install their own renewable electricity generating facilities on their manufacturing facilities; his views on these initiatives which are taking place in the harbour region of Cork; and if he will make a statement on the matter. [55329/13]

Written answers

Minister for Communications, Energy and Natural Resources

I am aware that there are a number of renewable energy projects which are proposed for the Cork Harbour area and I understand that four wind energy developments have received planning permission. I also understand that a pre-planning application has been made to An Bord Pleanála in relation to the development of a waste-to-energy facility in the area.

Under the Renewable Energy Directive Ireland must ensure that 16% of its energy comes from renewable sources by 2020 and there are a number of Government supports for renewable energy generation.

The Renewable Electricity Feed-in Tariff (REFIT) schemes are the principal means of supporting renewable electricity generators for renewable energy exported to the grid. The schemes operate by guaranteeing a minimum price for renewable energy generation over a 15 year period. The technologies supported include onshore wind energy, hydroelectricity, landfill gas, waste-to-energy and biomass technologies, including anaerobic digestion. Further information is available on my Department's website, www.dcenr.ie.

There is also tax relief available, under Section 486B of the 1998 Finance Act, on capital directly invested in renewable energy generation assets. All renewable electricity generating technologies can avail of Section 486B of the Tax Consolidation Act (TCA) 1997 which allows an investor to claim the lesser of 50% of all capital expenditure (excluding lands) or €9.525 million for a single project. Investment by a company or group under this scheme is capped at €12.7 million per annum.

Other tax-based support measures include the Employment and Investment Incentive (EII) Scheme which allows individual investors to obtain income tax relief on investments in renewable energy in each tax year. This scheme supersedes the previous Business Expansion Scheme. It provides a minimum tax relief of 30% with an additional 11% accruing at the end of the third and final year if the business has expanded to employ a designated number of people (or if the investment was used for R&D). The scheme has an investment cap of €750,000 and may thus be suited to small industrial renewable energy projects. A number of financial services companies offer EII Funds or portfolios to investors.

An Accelerated Capital Allowance scheme also allows companies to offset the cost of investment in qualifying renewable energy generation technologies, against their tax liabilities in year 1 rather than over a more prolonged period, thus aiding their cash flow.

Renewable energy may also qualify for EU rural development funding identified in the European Agriculture Fund for Rural Development and rural enterprises may thus apply for funding, under the regional Leader Partnerships, to develop renewable energy projects.

Finally, the Sustainable Energy Authority of Ireland (SEAI) continues to provide grant support for companies investing in renewable energy installations as a component of coordinated programmes of energy efficiency measures under the Better Energy Workplaces and Better Energy Communities schemes. The SEAI Renewable Energy Information Office also provides support and information to companies requiring advice on adopting renewable energy technologies.

Electricity Transmission Network

Questions (442)

Tom Barry

Question:

442. Deputy Tom Barry asked the Minister for Communications, Energy and Natural Resources if he will encourage EirGrid to constructively engage with local communities regarding the pylon issue; the person who sets the projected requirements for electricity based upon which EirGrid plans its infrastructure, the energy requirements, sector by sector, for the Irish economy up to 2020; and if he will introduce a renewable heat incentive scheme, similar to the UK, where incentives are given to commercial users who substitute biomass for fossil fuels. [55354/13]

Written answers

Minister for Communications, Energy and Natural Resources

In the Government Policy Statement on the Strategic Importance of Transmission and Other Energy Infrastructure of July 2012, the imperative for the State Companies, and all developers of energy projects, of early, transparent engagement and consultation with local communities and stakeholder was emphasised. I am aware that EirGrid is committed to public consultation and that they have been engaging in a comprehensive process in regard to Grid25 projects. Following conclusion of the first public consultations on the €500m Grid Link project, I have had a productive meeting with the Board and senior management of EirGrid. The company advises me that there has been some 35,000 submissions from the public during the public consultation. These are now being sifted through in detail and I have asked EirGrid to prepare an initial report of the main issues raised. I am satisfied that the value of the public consultation will be determined by the character of the response to the issues raised. I am committed to making a response to the public consultation in Dáil Éireann as soon as an initial report is available. I expect to be able to respond before the end of the month.

The setting of requirements for electricity infrastructure is an operational matter for EirGrid which is based on detailed analyses which appear annually in the company’s major publications including the Network Development Plan, Forecast Statement, and Generation Capacity Statement.

Energy requirements for Ireland to 2020 are assessed by the Sustainable Energy Authority of Ireland (SEAI) and the following table shows the latest available projections. These projections are expressed in kilotonnes of oil equivalent (ktoe) and are based on the details published in both the National Energy Efficiency Action Plan (NEEAP) and the National Renewable Energy Action Plan (NREAP) which were submitted by my Department to the European Commission.

By Sector	2012	2013	2014	2015	2016	2017	2018	2019	2020
Household	2771	2793	2725	2665	2612	2565	2519	2475	2433
Industry	2332	2404	2360	2356	2369	2383	2390	2401	2412
Services	1212	1136	1113	1083	1063	1051	1045	1040	1041
Agriculture	324	352	358	364	371	378	386	394	402
Transport	4599	4798	4853	4877	4944	5041	5166	5267	5400
Total	11238	11483	11410	11345	11358	11419	11506	11577	11688

The National Renewable Energy Action Plan projects that heat from renewable sources will amount to 12% in the context of achieving our 2020 targets. The uptake of the CHP capacity under REFIT 3, launched in early 2012, will make a contribution to achieving this along with migration to renewable heat in response to market forces. The requirements of Part L of the Building regulations are also expected to make a contribution to increasing the uptake of renewable heat. These measures and developments will build on the increases in renewable heat which were achieved by schemes such as the Greener Homes Scheme, the Renewable Heat Deployment Programme (ReHeat) and the CHP Deployment Programme.

My Department is also currently finalising a Bioenergy Strategy which will set out the actions required to optimise the contribution that energy from biomass can make to achieving Ireland's 2020 renewable energy targets. Analysis underpinning the strategy suggests that additional bioenergy measures can have a significant impact in the heat sector and recommendations will shortly be brought forward in this regard.

Departmental Staff Data

Questions (443)

Bernard Durkan

Question:

443. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the extent to which agency staff have been used in his Department in each of the past five years for the purpose of answering and transferring calls on their switchdesk; and if he will make a statement on the matter. [55430/13]

Written answers

Minister for Communications, Energy and Natural Resources

My Department does not use agency staff for the purposes outlined in the Question.

The telephony/switchboard service in my Department is currently under contract with the National Council for the Blind of Ireland (NCBI). I understand that NCBI provides services to other public bodies in this regard.

The contract provides valuable employment for two people with a registered disability as well as an excellent training platform for relief vision-impaired telephonists who cover from time to time as part of the contractual terms.

Salmon Management Report

Questions (444)

Pádraig MacLochlainn

Question:

444. Deputy Pádraig Mac Lochlainn asked the Minister for Communications, Energy and Natural Resources further to Parliamentary Question No.191 if there have been any reports or surveys on salmon numbers around our coast in recent times; if he will provide the findings of same. [55472/13]

Written answers

Minister of State at the Department of Communications, Energy and Natural Resources

Ireland manages salmon stocks on an individual river basis. This management is carried out by Inland Fisheries Ireland (IFI), the State Agency with statutory responsibility for inland fisheries. This is based on the fact that each of Ireland’s 142 salmon rivers has its own genetically unique stock of salmon which migrates to sea as juveniles and returns to the same river in adulthood to spawn and create the next generation of fish exclusive to that river.

The Atlantic salmon is a protected species under the EU Habitats Directive and Ireland’s current salmon management regime complies with the requirements of this legislation. The conservation imperative means that exploitation of salmon from each river is only permitted where the independent Standing Scientific Committee for Salmon (SSCS) determines that the stock in that river is above its conservation limit. The advice of the SCC is available on the website of IFI – www.inlandfisheries.ie.

During migration from rivers to marine feeding grounds, salmon from both rivers in Ireland and rivers in other countries travel through Ireland’s coastal waters. These "mixed stocks", either in coastal waters or distant waters, pose particular difficulties for management as they contain individual fish often from a wide range of rivers some of which are below sustainable reproductive capacity. The difficulty is that it is not possible to disaggregate the individuals or stock groups at sea.

Research in coastal areas and in the marine environment concentrates on increasing knowledge of migratory patterns, marine based mortality and return rates to home rivers as stock assessments can only be carried out on the individual stock in each river.

The conservation/exploitation balance is best achieved where fisheries target individual river-based stocks that have been shown to be at full reproductive capacity and capable of sustaining the genetically unique population of that individual river.

In order to align fully with the EU Habitats Directive and the North Atlantic Salmon Conservation Organisation (NASCO) advice, the Irish Government closed mixed stock fisheries in 2007 including coastal and offshore fishing for salmon. Harvest fisheries are now only allowed on individual river stocks which are shown to have a surplus of fish over the conservation limit. Fisheries in estuaries may also be permitted where the stocks from individual rivers entering the estuaries are each meeting their individual conservation limits.

Any deviation from this policy would be contrary to the international independent scientific advice as the "home river" of off-shore salmon cannot be identified and such a move could potentially lead to conflict with EU and international obligations on grounds of not protecting vulnerable Irish and international salmon stocks.

Petroleum and Gas Exploration

Questions (445)

Luke 'Ming' Flanagan

Question:

445. Deputy Luke 'Ming' Flanagan asked the Minister for Communications, Energy and Natural Resources in view of the fact that no petroleum prospecting licences were granted to companies (details supplied), if he will confirm that he was indemnified by these companies for all actions they undertook while they held the options licence when prospecting in the Leitrim area; and if he will make a statement on the matter. [55488/13]

Written answers

Minister of State at the Department of Communications, Energy and Natural Resources

The grant of these three Onshore Licensing Options was made subject to compliance with the Licensing Terms for Offshore Oil and Gas Exploration, Development and Production 2007 and in particular with Section 44(2) of the Licensing Terms which requires the holder of an authorisation, in this instance an Onshore Licensing Option, to "at all times keep the Minister effectually indemnified against any claim, demand or damage whatsoever in respect of its operations under the authorisation or for injury or damage to any person or property (including the person or property of any other person in receipt of an authorisation from the Minister) or for nuisance or in any way arising out of or attributed to the exercise or purported exercise of any of the rights and privileges conferred by the authorisation or attributed to any act or omission of the authorisation holder or its officers, servants, employees, or workmen or contractors or persons in privity with the authorisation holder whether such claims shall be made against the Minister or the authorisation holder and the Minister jointly or with others".

Community Radio Stations Funding

Questions (446, 447, 448, 464)

Ciara Conway

Question:

446. Deputy Ciara Conway asked the Minister for Communications, Energy and Natural Resources his views on a a recent Crowe-Horwath consultancy document for the Broadcasting Authority of Ireland, which commented on the social benefits of community media; his views on whether the community radio sector should be funded by means other than commercial income; if he will look at ways to assist the development of community media across the state; and if he will make a statement on the matter. [55511/13]

Michael McGrath

Question:

447. Deputy Michael McGrath asked the Minister for Communications, Energy and Natural Resources his plans to provide funding to the community radio sector out of the proceeds from the new public service broadcasting charge; and if he will make a statement on the matter. [55537/13]

Éamon Ó Cuív

Question:

448. Deputy Éamon Ó Cuív asked the Minister for Communications, Energy and Natural Resources if he will provide extra funding for community radio from the public service broadcasting charge, once it is introduced, in view of the very important services that community radio provides to local communities; and if he will make a statement on the matter. [1084/14]

Ciara Conway

Question:

464. Deputy Ciara Conway asked the Minister for Communications, Energy and Natural Resources his views on funding the community media sector particularly community radio; his views on whether not-for-profit radio should be funded by means other than commercial income; if he will look at ways to assist the development of community media across the State in view of the social benefits to local communities; and if he will make a statement on the matter. [1336/14]

Written answers

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte)

I propose to take Questions Nos 446 to 448, inclusive and 464 together.

Community radio stations in Ireland are funded from various sources, including funds derived from donations, advertising and sponsorship.

Additionally, the non-profit community radio stations receive a significant amount of publicly funded support from the Broadcasting Funding Scheme, one of the specified aims of which is the development of local and community broadcasting by providing funding for the provision of high quality, diverse and innovative programming by community broadcasters. This Scheme is currently funded by way of a set proportion of net television licence fee; I expect that a similar funding structure will apply following the introduction of the Public Service Broadcasting Charge.

The Broadcasting Authority of Ireland (BAI) is assigned responsibility under Part 10 of the Broadcasting Act 2009 for the administration of the Scheme.

Section 158 of the Broadcasting Act 2009 provides that the BAI shall every three years review the operation, effectiveness and impact of the Broadcasting Funding Scheme, and make a written report to my Department. In April 2012, following a tender process the BAI engaged Crowe Horwath as independent Consultants to carry out the required review. The resultant Report addresses the impact, effectiveness and operation of the Scheme as well as including key findings from a stakeholder consultation and rightly recognised the important contribution of community broadcasting to Irish society. This Report was laid before both Houses of the Oireachtas on 18 November 2013.

EU State Aid approval of the existing Scheme terminates at the end of this year and, in anticipation of this, in November 2013, the BAI issued a consultation paper on a proposed replacement Scheme. The period of consultation on this closed in early January and it is expected that a new draft Scheme will be submitted to my Department for Ministerial approval in March. The draft Scheme will be examined by my Department to ensure that it adequately fulfills the relevant policy objectives as enunciated in the legislation, including those relating to the development of community media. EU State Aid approval will also be required prior to the new Scheme becoming operational on 1 January 2015.

Finally, I should mention that the BAI also operates the Community Broadcasting Support Scheme, which is a separate development fund specifically established to enable community radio stations to evaluate their activities. The scheme provides funding for stations to carry out key review work to assist with their overall performance to build capacity. The BAI works closely with the community sector in this regard.

National Postcode System Establishment

Questions (449, 450, 463)

Clare Daly

Question:

449. Deputy Clare Daly asked the Minister for Communications, Energy and Natural Resources the latest developments with regard to the new postcode system; the amount expended on this project to date; and the stage the tender process is at. [1091/14]

Michael Moynihan

Question:

450. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the fees paid to date to a company (details supplied) for advice on the introduction of postcodes; the total agreed fee; and if he will make a statement on the matter. [1162/14]

Michael McGrath

Question:

463. Deputy Michael McGrath asked the Minister for Communications, Energy and Natural Resources the reason a new tender was issued in December 2013 in respect of the planned national postcode system; and if he will make a statement on the matter. [1302/14]

Written answers

Minister for Communications, Energy and Natural Resources

I propose to take Questions Nos. 449, 450 and 463 together.

On 8 October 2013, the Government approved, subject to contract, the appointment of Capita Business Support Services Ireland Limited as the company which will develop, roll-out and operate the National Postcode System following the conclusion of the public procurement process. This company will operate the postcode under licence for an initial ten year period extendable at the discretion of the Minister for Communications by a further five years. The contract for these services was signed in December 2013.

The postcodes contract is expected to cost around €16m as the postcode system is developed and rolled out over the next 2 years and there will be a cost of about €1.2m per year over the remainder of the licence period. There have been no fees paid to Capita to date.

It is intended that householders will be informed of their postcodes in 2015 when the system will come into operation. In the meantime the ground work required to design the code and update private and public sector databases to accommodate the new postcode system has just been commenced by Capita.

The procurement cost of this project from 2010 to date is €909,702 (incl VAT).

The recent request for tender that issued from my Department on 23 December 2013 is for technical advice and support services to the Department during the implementation of the National Postcode System.

European Court of Justice Rulings

Questions (451)

Michael Moynihan

Question:

451. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources if his attention has been drawn to the recent judgment in Case C-262/12 Association Vent De Colere! Federation nationale and Others of the Court of Justice of the European Union; his views on whether this will have any impact on current arrangements relating to wind energy pricing here; and if he will make a statement on the matter. [1163/14]

Written answers

Minister for Communications, Energy and Natural Resources

I understand that the judgment in the case to which the Deputy refers relates to the application of EU State Aid rules to wind power generation projects in France. All renewable electricity support schemes in Ireland have received State Aid clearance from the EU. Consequently, the judgement in the French case has no implications for wind energy pricing in Ireland.

Renewable Energy Generation

Questions (452, 453)

Michael Moynihan

Question:

452. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the percentage of Ireland's energy supply that is produced by solar energy; the megawatts this represents; and if he will make a statement on the matter. [1168/14]

Michael Moynihan

Question:

453. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources his views on whether there is further potential for solar power development here; and if he will make a statement on the matter. [1169/14]

Written answers

Minister for Communications, Energy and Natural Resources

I propose to take Questions Nos. 452 and 453 together.

There are two types of solar energy technologies in use in Ireland, solar thermal and solar photovoltaic. The Sustainable Energy Authority of Ireland (SEAI) produces an annual report detailing Ireland’s Energy Balance.

Solar thermal energy is reported in Ireland’s Energy Balance 2012 as accounting for 10.22 kilo-tonnes of energy (ktoe). This is equivalent to 118,856 Megawatt hours (MWh). The 2012 report shows that the total Primary Energy Requirement was 13,229 ktoe. Therefore the percentage of Ireland's primary energy requirement that is produced by solar thermal energy in 2012 was 0.08%.

The SEAI does not currently report on solar photovoltaic (PV) in the Energy Balance. However, they do collect information from ESB Networks (ESBN), which shows that there were 134 microgeneration grid connected PV installations at the end of 2012, with a total installed capacity of 364 Kilowatts (kW). SEAI estimate an electrical output of 250 MWh from these installations in 2012. These microgeneration connections are domestic installations only. While there are also some existing standalone (i.e. not connected to the grid) commercial and domestic installations, statistics are not available for these installations.

A progress report on Ireland’s National Renewable Energy Action Plan (NREAP) is currently being finalised. The findings of this report will provide a suitable context for reviewing the potential for cost effective support of microgeneration (including solar).