Thursday, 30 Jan 2014

Written Answers Nos. 1-20

Broadcasting Sector Regulation

Questions (8)

Michael Moynihan

Question:

8. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the actions his Department has taken to cover the reduction in funding to RTE of €5 million due from the Department of Social Protection; if he will provide an update on the proposed introduction of the broadcasting charge; the expense his Department has incurred thus far in introducing the broadcasting charge; and if he will make a statement on the matter. [4248/14]

Written answers

Minister for Communications, Energy and Natural Resources

The 2014 Budget provided for a €2.5 billion adjustment in the Government's fiscal position. Expenditure cuts of €1.6 billion were central to this adjustment and difficult decisions were required across all Departmental budgets. As the Deputy is aware, a decision was taken by Government as part of this process, on the proposal of the Department of Social Protection, to reduce by €5m the amount required to be paid to my Department by the Department of Social Protection, for free television licences. This measure resulted in RTÉ's licence fee income being cut by over €4.6m from the start of 2014, as well as a reduction of around €350,000 in the amount available to the independent production sector through the BAI's Sound & Vision Fund.

The BAI's Five Year Review of the Funding of the Public Service Broadcasters was published in July 2013 and made a number of recommendations in relation to the future funding of the Public Service Broadcasters. It is my intention that the recommendations made in this Review will serve as the basis for future decisions on the funding of the Public Service Broadcasters.

RTÉ continues to make considerable efforts to achieve its targets. While the prevailing challenging financial circumstances and this reduction in its licence fee revenue will have an impact on the provision of some RTÉ services this year, I am hopeful that RTÉ can continue to protect and promote its core public service output in 2014.

I launched a consultation on the proposed Public Service Broadcasting Charge on 27 August last, which ran until the 8 October. Almost 400 responses were received from members of the public, industry and stakeholder groups. The consultation paper was based on the key findings of a Value for Money Policy Review completed by my Department earlier last year. Views were sought on a series of questions based on each of the Value for Money recommendations, which can be generally categorised as pertaining to the Basis for the Charge; Eligible Households; Applicable Businesses; Payments; Collection; and Compliance and Enforcement.

I am considering the responses received during the Consultation and will use them to inform proposals on the Charge, which I will bring to Government in due course.

The only costs to date generated by work on the proposed charge, other than staff costs in my Department, relate to the expenses of the Value for Money Review on the proposal to introduce such a charge. The independently chaired Review Group considered a range of issues in relation to the proposal, including the efficiency and effectiveness of the current licensing system. The total cost of this process was €1,880.

Job Creation

Questions (9)

Michelle Mulherin

Question:

9. Deputy Michelle Mulherin asked the Minister for Communications, Energy and Natural Resources the steps being taken to ensure that the Government objective of ensuring local employment where possible on land-based energy projects is being pursued by project developers; and if he will make a statement on the matter. [4115/14]

Written answers

Minister for Communications, Energy and Natural Resources

It is estimated that the energy sector overall employs in the region of 30,000 people in Ireland.

Renewable energy, in particular, and the use of our indigenous resources is widely seen as having the potential to support the Green Economy and sustainable employment opportunities.

In terms of achieving our 2020 targets, to date wind energy has been the largest driver of growth in renewable electricity in Ireland. In 2012, 19.6% Ireland’s electricity demand was met by renewables, of which 15.3% of was met by wind generation.

Deployment of wind generation to meet our domestic targets has already begun to realise economic benefits and a recent Irish Wind Energy Association member survey indicated that 3,400 people are currently employed in the sector. Employment creation will be further strengthened in the sector as we continue to deploy renewable energy and related technologies for the domestic and, potentially, the export market.

Additionally, biomass can replace imports of fossil fuels and can therefore contribute to job creation in Ireland. The availability of competitively priced locally-sourced biomass has the potential to further enhance the opportunities for local employment in the sector. A report commissioned by the Irish Bioenergy Association in 2012 indicated that, in the context of achieving our 2020 targets, 3,600 permanent jobs could be created in the bioenergy sector with 8,300 work years available during construction and installation of biomass facilities. The report also indicated that energy imports could be reduced by 7.5%. The Government recognises the enterprise potential of the sector and additional policies brought forward in the context of the bioenergy strategy will have the capacity to further enhance the employment potential of the sector.

All relevant State agencies, particularly in the enterprise area, are co-ordinating their activities to ensure they maximise the employment potential of renewable energy projects. This opportunity has already been identified by IDA Ireland and Enterprise Ireland in their clean technology growth strategies.

National Renewable Energy Action Plan Publication

Questions (10)

David Stanton

Question:

10. Deputy David Stanton asked the Minister for Communications, Energy and Natural Resources further to Parliamentary Questions Nos. 313 and 314 of 10 December 2013, when he expects the progress report on Ireland's national renewable energy action plan to be completed; and if he will make a statement on the matter. [4305/14]

Written answers

Minister for Communications, Energy and Natural Resources

The 2009 EU Renewable Energy Directive set Ireland a legally binding target of meeting 16% of our energy requirements from renewable sources by 2020.

The Directive requires that Member States set out in a National Renewable Energy Action Plan (NREAP) their trajectories towards meeting these targets and the measures to be taken to achieve these targets. Ireland's NREAP assumes Ireland's 16% target will be met incrementally at around 1% per annum. It also provides that 40% of electricity demand, 12% of heating and 10% of transport power be produced from renewable sources.

The first progress report on Ireland's NREAP was submitted in January 2012 and the second progress report, covering the years 2011 and 2012, is due and its completion is being prioritised to be submitted to the European Commission very shortly. Figures for 2012 compiled by the Sustainable Energy Authority of Ireland, and which will be included in the report, indicate that 7.1% of our overall energy requirements were met from renewable sources which is up from 6.5% in 2011. In 2012, renewable energy sources made up 19.6% in electricity, 5.2% in heat and 3.8% in transport.

It has been found that renewable electricity generation from large scale wind farms is the most cost effective way to reach Ireland’s 2020 renewable electricity target and it is estimated that a total of between 3,500 and 4,000 MW of onshore renewable generation capacity will be required for 2020.

In this regard, there continues to be significant progress in increasing the amount of electricity generated from renewable energy. To date, wind energy has been the largest driver of growth in renewable electricity, contributing most towards the achievement of the 2020 target and, by September 2013, 16.3% of Ireland's electricity demand was met by wind generation. At the end of 2013, the total amount of renewable generation connected to the grid was approximately 2,300 MW and indicative figures from Eirgrid suggest that 240MW of wind electricity connected to the grid in 2013.

Question No. 11 answered with Question No. 7.

Renewable Energy Generation Targets

Questions (12, 26)

Catherine Murphy

Question:

12. Deputy Catherine Murphy asked the Minister for Communications, Energy and Natural Resources if, in view of the European Commission's decision to remove member state-specific renewable energy production targets, and considering the State's overall fossil fuel dependency ratio, he will restate Ireland's commitment to achieving a sizeable transition to renewably sourced energy to 2020 and beyond that date; if he considers it appropriate to state a domestic fossil fuel use reduction target as a statutory obligation on the State in domestic legislation; and if he will make a statement on the matter. [4230/14]

Thomas Pringle

Question:

26. Deputy Thomas Pringle asked the Minister for Communications, Energy and Natural Resources the impact the announcement by the European Commission regarding the new Europe-wide targets for renewable energy will have on Government policy on renewable energy; and if he will make a statement on the matter. [4307/14]

Written answers

Minister for Communications, Energy and Natural Resources

I propose to take Questions Nos. 12 and 26 together.

The Government’s overriding energy policy objective is to ensure competitive, secure and sustainable energy for the economy and for society. Renewable energy has a critical role to play with regard to each element of this objective. Prior to the publication of the Commission's 2030 proposals, I supported, along with seven other European Energy Ministers, a renewable energy target for 2030. Given the long lead in time for energy developments, clear investment signals are critical for the renewable energy sector if it is to be in a position to make a contribution to achieving 2030 goals. Not only is the renewable energy sector of key importance in the context of 2030, it also provides a real, and sustainable, economic opportunity for Ireland, both in terms of providing a secure, indigenous source of energy, and potentially as a clean export.

My Department will, over the coming months, work closely with European partners to establish the scale of the contribution Ireland should make to the acheivement of this proposed EU target. Considerable analysis of the Commission’s proposals will be required to ensure that the framework allows for action that is cost effective and does not place a disproportionate burden on EU energy consumers.

The Government is fully committed to delivery of the existing target of 16% of energy coming from renewable sources by 2020. In 2012, 19.6% of electricity demand was met by renewable generation, with 5.2% of heat and 2.4% of transport energy requirements coming from renewable sources. Overall, at the end of 2012, 7.1% of our energy was provided from renewable sources. It is critical that that every effort is maintained if we are to reach the 16% target for 2020, as it will provide the basis for reaching our 2030 objectives.

Further increasing the share of renewable energy in our generation portfolio will reduce our dependency on expensive imported fossil fuels. Given the variability of some renewable energy sources, however, fossil fuels will remain an important part of the fuel mix as we transition to a low carbon economy. Having said that, subsidies are already in place to incentivise the market to deliver the necessary generation capacity to meet our renewable electricity target; market mechanisms for the reduction of fossil fuel generation are, therefore, already in place. That this action is delivering displacement of fossil fuel generation is evidenced by analysis undertaken by the Sustainable Energy Authority of Ireland, which shows renewable electricity has displaced over €1 billion worth of fossil fuel imports - mainly gas - since 2006.

Question No. 13 answered with Question No. 7.

Internet Safety

Questions (14)

Michael Colreavy

Question:

14. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources the outcome of the first meeting of the Internet Content Advisory Group; and if he will make a statement on the matter. [4296/14]

Written answers

Minister for Communications, Energy and Natural Resources

I established the Internet Content Governance Advisory Group late last year with a view to providing expert advice on a number of issues relating to online content and commentary. This Group met for the first time on 18th December 2013, and has met on two subsequent occasions since.

At it's first meeting the Group agreed to an ambitious and detailed Terms of Reference which requires them to make recommendations across three defined areas, namely whether existing national regulatory and legislative frameworks around online governance remain relevant, whether other existing policy responses by the State remain sufficient and finally what the "most appropriate relationship should be between ISPs, online service providers, the State and citizens in relation to internet content that may be age-inappropriate and to bullying and harassment online." In making these recommendations, the Group has been asked to have regard to a range of factors, including the report of the Joint Oireachtas Committee titled ‘Addressing the Growth of Social Media and tackling Cyberbullying’.

The Group launched a public consultation on Friday 24th of January aimed at engaging key stakeholders, including parents and young people on issues of internet content governance. The consulation focuses on regulation, governance and internet safety; bullying and harassment; and accessing age inappropriate content. It is the intention of the Group to use the outcome of this public consultation to inform their report which they will submit to me by the end of May.

I look forward to the receiving the report which I will bring it to the attention of the Joint Oireachtas Committee and would be happy to discuss the outcome with them also.

Broadband Service Provision

Questions (15)

Thomas Pringle

Question:

15. Deputy Thomas Pringle asked the Minister for Communications, Energy and Natural Resources if he will ask the ESB to roll-out fibre broadband to all households here on the passing of the ESB (Electronic Communications Networks) Bill 2013; and if he will make a statement on the matter. [4308/14]

Written answers

Minister for Communications, Energy and Natural Resources

The ESB (Electronic Communications Networks) Bill 2013, if enacted, will provide an explicit legal basis to enable the ESB to engage, now or in the future, in the installation and operation of electronic communications networks and services, either alone or by agreement with one or more other companies, and to provide for consequential matters. Prior to formally entering the telecommunications market, either alone or in partnership with another operator, the ESB would also be required to separately secure shareholder consent and any other required statutory permissions.

The electronic communications networks and services markets, which the ESB is proposing to enter, are fully liberalised markets in accordance with EU legislative requirements. Service providers participating in those markets must act in accordance with the EU market economy investor principles which require, among other things, that capital investment should only occur in circumstances which would be acceptable to a rational private investor operating in normal market economy conditions. It is therefore the case, that the ESB's entry into this market would be on a commercial basis. I understand that ESB is considering a joint venture partnership with a telecommunications partner, with a view to rolling out high speed broadband utilising its extensive distribution network. I await with interest a formal proposal from ESB in this regard.

I have advised the House previously on progress in rolling out customers' access to high speed broadband services. As of September last there were over 1.67 million broadband subscribers in Ireland, an increase of 1% on 2012. In the same period broadband subscriptions equal to or greater than 10 megabits per second increased to 42% from 31% of fixed line subscriptions and broadband subscriptions equal to or greater than 30 megabits per second increased to 33% from 20%.

The National Broadband Plan which I published in August 2012 commits to the delivery of high speed broadband across the country. The Plan acknowledges that its targets will be achieved by a combination of investment by the commercial market and a State intervention to serve areas that commercial criteria alone would not serve. Intensive work is underway to deliver on the various elements of the plan.

Energy Usage

Questions (16)

Michael Colreavy

Question:

16. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources Ireland's position in respect of ranking in a list of energy efficient countries; and if he will make a statement on the matter. [4294/14]

Written answers

Minister for Communications, Energy and Natural Resources

There is currently no international ranking of countries in terms of an energy efficiency league table published by either the European Union or International Energy Agency.

The National Energy Efficiency Action Plan (NEEAP) is the overarching policy framework for energy efficiency in Ireland and contains Ireland’s commitment to a 20% energy savings target across the economy by 2020 in pursuit of our EU obligations. This is equivalent to 31,925 Gigawatt hours (GWh) or a reduction in annual CO2 emissions of around 7.7 Mega tonnes (Mt). Recognising that Government must lead by example, we are committed to achieving a 33% reduction in public sector energy use by 2020. At end 2012 we have already achieved or banked 11,419 GWh which represents 36% of our national target. Nevertheless, the bulk of our target remains to be delivered over the 7 years to 2020.

Earlier this month the European Commission published a progress report on energy efficiency referring to historical data based mainly on what Member States reported in their second NEEAPs. It does acknowledge that Ireland’s existing Action Plan presents a clear and cohesive medium term strategy to improve energy efficiency and in particular contains a strong commitment to improve efficiency in the public sector. However, the Commission’s analysis points out that given the different approaches used by member states to calculate savings under the framework of the 2006 Energy Services Directive, it is difficult to quantify overall savings achieved to this point. It therefore concludes that the savings reported by different Member States are not comparable.

Under the 2012 Energy Efficiency Directive, all Member States are required to submit a revised Energy Efficiency Action Plan by 30 April 2014 and every three years thereafter. The drafting of our next Action Plan is underway and our intention is to submit it to the Commission by the required deadline. Moreover, by 30 June 2014 the Commission will assess progress achieved and whether the Union is likely to achieve its 2020 energy consumption targets.

Retail Sector

Questions (17)

Dara Calleary

Question:

17. Deputy Dara Calleary asked the Minister for Communications, Energy and Natural Resources if he is concerned by the risk to employment in the traditional retail sector from increased online purchasing by consumers; the way domestic retailers can be supported to achieve a greater proportion of online sales; and if he will make a statement on the matter. [2962/14]

Written answers

Minister for Communications, Energy and Natural Resources

According to the most recent CSO statistics available, some 75% of businesses in Ireland have a website. However, only around 1 in 5 Irish small businesses employing between 10 and 49 employees are currently selling online.

A recent international study by McKinsey indicated that businesses that use the internet to operate their business and sell to their customers can grow up to twice as fast, employ twice as many people, and are twice as likely to export as those that don't. They have also found that use of digital technology can displace jobs, but that for every job replaced 1.6 new jobs are created.

In the development of our National Digital Strategy, published in July 2013, my Department engaged Indecon to conduct research on the digital economy and its contribution and value to overall macro-economic activity in the country. That study found that Irish consumers spent almost €4bn online in 2012. However, 70% of this online business is going out of Ireland. The amount of online purchasing continues to increase.

In formulating a policy response to this issue, the Government's National Digital Strategy and 2013 Action Plan for Jobs commits to a trading online voucher scheme targeted at small and micro businesses. This scheme will see Irish businesses apply, through a competitive process, to receive a grant in the form of a voucher of up to €2,500 to support them to transition to trading online. The vouchers are designed to help small Irish business to take advantage of the enormous opportunity the internet can bring. Trading online will enable small Irish companies to access wider markets, to survive, grow and create jobs.

I secured additional funding of €5m in 2014 to enable the national rollout of the voucher scheme. The scheme is being piloted in Dublin at present. Working with Dublin City Enterprise Board, 25 companies have been supported by the scheme to date. A second pilot identifying another 25 businesses in Dublin will start in February followed by a full national roll out of this scheme later this year. I have set a target of distributing up to 1000 vouchers in 2014.

More information on this issue can be found on the Department's website, which has a dedicated section on the Government's National Digital Strategy.

Question No. 18 answered with Question No. 7.

Fisheries Protection

Questions (19)

Michael Colreavy

Question:

19. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources if there will be a restocking of eels in rivers and lakes; and if he will make a statement on the matter. [4297/14]

Written answers

Minister of State at the Department of Communications, Energy and Natural Resources (Deputy Fergus O'Dowd)

Ireland's Eel Management Plan (EMP) was accepted by the EU in 2009 under the 2007 EU Eel regulation (1100/2007). The plan outlined the following main management actions aimed at reducing eel mortality and increasing silver eel escapement to the sea:

- a cessation of the commercial eel fishery and closure of the market;

- mitigation of the impact of hydropower installations;

- ensure upstream migration of juvenile eel at barriers;

- improvement of water quality.

Based on comprehensive scientific assessment of eel stocks nationally and a review of Ireland’s EMP in 2012 it was recommended that the closure of both the commercial and recreational eel fisheries be continued in line with the conservation imperative. Similar reviews were carried out across the EU as the eel stock is endangered throughout Europe.

The International Council for Exploration of the Sea (ICES) advised in 2011, that glass eel recruitment had fallen to 5% of their 1960-1979 level in the Atlantic region and precariously less than 1% in the North Sea area. The very latest ICES advice (2013) indicates that the annual recruitment of glass eel to European waters has increased marginally over the last two years to 1.5% of 1960-79 levels in the North Sea area, and to 10% in the Atlantic area. The overall ICES advice is that the indices remain at very low levels compared with historical catches. In Ireland, scientific studies also show that recruitment has been declining since the mid-1980s, for example in the 2000-2011 period, the glass eel catch in the Shannon was at 2% of the pre-1980 level.

This points to a situation where the recruitment of glass eels and elvers remains perilously low and sustainable availability of juveniles is a significant challenge. To stock home rivers with eels would mean obtaining elvers from some other European source and re-introducing these eels to rivers in Ireland. There are very considerable challenges to this:

- the potential for the transmission of disease and parasites when introducing eels from other catchments;

- any estuaries where elvers are in adequate numbers will be targeted in the first instance by the nation in whose waters the elvers are to ensure that their rivers are adequately populated;

- Elvers are extremely costly and it would be prohibitively expensive to source these elvers competing with both the host nation and any other countries for the opportunity to obtain wild elvers;

- stocking of elvers is a long term conservation measure with no short or even medium term benefit as regards fisheries. In Ireland on average it takes up to two decades for eels to reach maturity.

The current ICES advice for 2013 states ‘The efficacy of restocking for recovering the stock remains uncertain while evidence of net benefit is lacking.’

Stocking is not included as a management action in Ireland’s EMP and surplus elver recruits were not identified for the 2012-2015 period to facilitate a stocking programme. The EMP will be reviewed again in 2015 and all elements, including the potential for stocking, can be considered at that stage based on an additional three years of scientific and management advice.

Broadband Service Provision

Questions (20)

Éamon Ó Cuív

Question:

20. Deputy Éamon Ó Cuív asked the Minister for Communications, Energy and Natural Resources his plans to provide high speed broadband to rural areas; when the roll out of this high speed broadband will commence; the platforms that will be utilised; the intended strength of this broadband; and if he will make a statement on the matter. [4114/14]

Written answers

Minister for Communications, Energy and Natural Resources

The Government’s National Broadband Plan, which I published in August 2012, aims to radically change the broadband landscape in Ireland by ensuring that high speed broadband is available to all citizens and businesses. This will be achieved by providing:

- a policy and regulatory framework that assists in accelerating and incentivising commercial investment, and

- a State-led investment for areas where it is not commercial for the market to invest.

Since the publication of the Plan, investments by the commercial sector are underway and in some instances have been accelerated in both fixed line and wireless high speed broadband services. In the fixed line segment of the market, eircom has announced plans to pass 1.4m premises with its next generation broadband service, with speeds of up to 100Mbps, while UPC has increased its entry level and maximum speeds to 120Mbps and 200Mbps respectively. Mobile operators have also made announcements regarding network upgrades and are rolling out enhanced product offerings. Last week, I introduced legislation in the Dáil, to allow the ESB to utilise its electricity network to install a new high speed broadband communications network.

These developments have been facilitated through the implementation of measures in the National Broadband Plan, including the conclusion of ComReg's multiband spectrum auction, and the new regulatory regime for fixed line Next Generation Access and service bundles. Both of these measures are designed to incentivise the rollout of services by operators.

In tandem with these developments, intensive work is underway in my Department to progress a State-led investment to secure the countrywide introduction of next generation broadband access. In order to progress the State-led investment for areas where it is not commercial for the market to invest, a full procurement process must be designed and EU State Aids approval must be obtained. My Department is engaged in a comprehensive mapping exercise of the current and anticipated investment by the commercial sector over the coming years, the results of which will inform the areas that need to be targeted in the State-led investment as envisaged in the National Broadband Plan.

In designing the procurement process for the intervention, my Department will be required to comply with the EU State aid rules which set out conditionality in relation to, among other things, technology neutrality. As different technological solutions exist to provide broadband services, no particular technology or network platform should be excluded. The State aid guidelines emphasise the role of fibre in assisting the delivery of high speed broadband through various platforms.

Intensive technical, financial and legal preparations, including stakeholder engagement, are ongoing. The procurement process for the approved intervention will be carried out in accordance with EU and Irish procurement rules and it is expected that it will be launched in 2014.

Through the implementation of the National Broadband Plan, I am committed to ensuring that all parts of Ireland have access to high speed broadband, with a view to ensuring that all citizens and businesses can participate fully in, and maximise the benefits of, a digitally enabled economy and society.