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Wednesday, 16 Jul 2014

Written Answers Nos. 161-171

Energy Prices

Questions (161)

Richard Boyd Barrett

Question:

161. Deputy Richard Boyd Barrett asked the Minister for Communications, Energy and Natural Resources the reason consumer gas and electric bills have not fallen, in view of the fact that the latest wholesale market report from Irish energy supplier Vaya claims there has been a 30% drop in Irish wholesale gas prices year on year and in view of the fact that a new EUROSTAT report shows that Ireland has the fourth most expensive electricity in the EU as prices rose by 5.1% in the second half of 2013 compared with just 2.8% across Europe while nearly 1,000 Irish homes had their electricity cut off in March 2014 because of failure to pay the bills, the latest figures from the energy regulator show; and if he will make a statement on the matter. [31961/14]

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Written answers

I am acutely aware of the financial challenges faced by many families at the current time. However it is important to note that the electricity and gas markets are commercial, liberalised and competitive and that they operate within national and European regulatory regimes. As Minister, I have no statutory function in the monitoring or setting of gas or electricity prices. Responsibility for the regulation of these markets is a matter for the Commission for Energy Regulation (CER), which is an independent statutory body.

The lower wholesale electricity price is currently being driven by the lower international gas prices since spring 2014. This should reduce the wholesale cost of gas and electricity that suppliers pay and, in turn, enable those suppliers to reduce their retail prices. However, falling wholesale gas prices will have to be sustained over a long period to result in lower electricity prices, if at all. This is because of a number of factors, including supplier market strategies in hedging and price setting and the network tariff outlook for 2014/2015.

Electricity and gas costs in Ireland are influenced by various drivers, including global gas and oil prices, the costs of capital, exchange rate fluctuations, the small size of the Irish market, geographical location and low population density, resulting in higher network costs. All things being equal, electricity and gas prices in Ireland will be higher than in other European countries due to the circumstances mentioned above. While electricity prices for the EU rose by only 2.8% for the category cited by the Deputy, the price increase in the Euro area was 4.2%. This is closer to the average increase in Ireland.

At a national level, the competitive energy market in place helps put downward pressure on prices. In addition, we must focus on all possible additional actions to mitigate costs for business and domestic customers, including rigorous regulatory scrutiny of the network costs component of retail prices, energy efficiency and customer switching. The position has improved on Pay As You Go Meter deployment and disconnection numbers are falling.

Sale of State Assets

Questions (162)

Noel Harrington

Question:

162. Deputy Noel Harrington asked the Minister for Communications, Energy and Natural Resources if he will provide an update on the possible sale of the strategic energy assets of the crude oil and refined products storage terminal based on Whiddy Island, Bantry Bay, and the oil refinery based at Whitegate; and if he will make a statement on the matter. [31963/14]

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Written answers

Commercial transactions involving privately owned assets are matters for the parties to such transactions and are not matters in which I, as Minister, have any role or function. However, I am aware that Phillips 66, the current owners of the refinery, confirmed in mid-2013 that they had commenced a process to market their Irish business with the process expected to last for several months, during which time the company would operate on a business as usual basis.

Phillips 66 updates my Department from time to time on significant developments regarding the sale process. The company confirmed earlier in 2014 that they are no longer marketing the Whitegate refinery but are continuing to market the Whiddy Island oil storage facilities.

Phillips 66 have further indicated that they are continuing to run the refinery on a business as usual basis. They are currently undertaking a planned maintenance regime known as a refinery turnaround. Turnarounds are significant events usually undertaken approximately once every 5 years.

Neither I nor my officials are aware of any other significant developments concerning the sale process at the present time.

Commencement of Legislation

Questions (163)

Seán Ó Fearghaíl

Question:

163. Deputy Seán Ó Fearghaíl asked the Minister for Communications, Energy and Natural Resources if he will provide in tabular form those Acts currently in force for which he has lead responsibility that have parts or sections yet to be formally commenced; the details or purpose of same; and if he will make a statement on the matter. [31999/14]

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Written answers

There are two Acts for which parts or sections have yet to be formally commenced by my Department and details of these are set out in tabular form.

Title of Act

Parts/Sections not yet commenced

Purpose of sections

Energy (Miscellaneous Provisions) Act 2012

section 17(2)(f)

To amend section 9 of the Electricity Regulation Act 1999 to provide for the appointment of gas safety officers by a gas transmission or distribution system operator or the holder of a LPG safety licence.

Gas Regulation Act 2013

Part 2 (sections 13-20, Schedule 1 and 2),

part 4 (sections 32 to 40 with the exception of section 38D)

part 5 (sections 41 – 47)

To provide for preparation by BGÉ and Gaslink of a network transfer plan, its approval by the Minister, and the transfer to the gas network company of certain functions, assets, licences, liabilities and staff from BGÉ and Gaslink.

To provide for amendments to the Gas Act 1976 in regard to Ministerial shareholding in BGÉ, the functions of BGÉ and corporate governance arrangements in order to comply with EU unbundling rules for gas transmission system operators.

To provide for the amendment of miscellaneous legislation concerning Ministerial shareholding in BGÉ and to remove references to gas supply from BGÉ’s functions in order to achieve compliance with EU unbundling rules for gas transmission system operators.

Housing Adaptation Grant Applications

Questions (164, 174)

Arthur Spring

Question:

164. Deputy Arthur Spring asked the Minister for the Environment, Community and Local Government if funding will be provided for house improvements in relation to roof repairs in respect of a patient who is recovering from an illness or surgery in order to ensure that the patient recovers in a suitable heated and insulated home. [31795/14]

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Arthur Spring

Question:

174. Deputy Arthur Spring asked the Minister for the Environment, Community and Local Government if the list of works considered eligible for the housing grant for persons with a disability should be amended to include repairs to roofs in view of the storm damage earlier this year and that many persons with disabilities require the home to be maintained to a higher temperature. [31896/14]

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Written answers

I propose to take Questions Nos. 164 and 174 together.

Under the terms of the suite of Housing Adaptation Grants for Older People and People with a Disability, which is administered by the local authorities, grants are available to assist households to have necessary repairs or improvement works carried out in order to facilitate the continued independent occupancy of their homes. Three separate schemes are available as follows:

(i) Housing Adaptation Grant for People with a Disability (HAG) which assists people with a disability to have necessary adaptations, repairs or improvement works carried out in order to make their accommodation more suitable for their needs. Grants for up to €30,000 are available for works including the provision of access ramps, stair lifts, accessible toilet and shower facilities, wheelchair access and extensions,

(ii) the Mobility Aids Grant Scheme (MAG) is available to fast track grants of up to €6,000 to cover a basic suite of works to address the mobility problems of a member of a household. Qualifying works include the provision of stair lifts, level access showers, access ramps, grab rails and some minor adaptation works,

(iii) the Housing Aid for Older People Scheme (HAOP) provides grants of up to €8,000 to assist older people living in poor housing conditions to have necessary repairs or improvements carried out. Grant eligible works include structural repairs or improvements, rewiring, repairs to or replacement of windows and doors, provision of water supply and sanitary facilities, provision of heating, cleaning, painting etc.

The detailed administration of these schemes, including the assessment, approval and payment of grants to applicants under the various grant measures, is the responsibility of the relevant local authority. In the case of an application under the HAOP, it is a matter for the local authority to determine, on a case by case basis, the level of structural repairs that may be necessary to the person’s home, including the nature and extent of any repairs required to remediate damaged or decaying roof structures. Similar discretion applies in the case of an applicant under the HAG where roof structure repairs are deemed necessary to meet the accommodation needs of the applicant.

It should be noted that separate from the grant measures outlined above, grant assistance may be available from the Sustainable Energy Authority of Ireland in respect of energy efficiency retrofitting works to prevent heat loss from a dwelling.

Local Authority Boundaries

Questions (165)

Ciaran Lynch

Question:

165. Deputy Ciarán Lynch asked the Minister for the Environment, Community and Local Government the progress that has been made regarding the proposed extension of Cork city boundary; the communication that has taken place between his Department and Cork city and county councils; if the extension will be completed prior to the next local elections; and if he will make a statement on the matter. [31689/14]

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Written answers

The procedures governing boundary alterations are set out in Part V of the Local Government Act 1991 and in the Local Government (Boundary Alteration) Regulations 1996. Under these provisions, it is open to a local authority to initiate a proposal for the alteration of its boundaries. This involves the preparation of a formal proposal by the authority concerned including the setting out of financial, organisational and other implications; invitation of public submissions; and consultation with the other local authorities affected by the proposal, prior to submitting a formal application to the Minister. There has been no such proposal submitted to my Department in relation to a possible boundary adjustment in the case of Cork City.

The Putting People First - Action Programme for Effective Local Government (October 2012), which sets out Government policy on local government reform, indicated that there appeared to be a good case in principle for considering a boundary alteration with a view to creating a wider Cork Metropolitan area. The Action Programme indicated that, while the initiative in this regard rests primarily with the local authorities, it is envisaged that if suitable arrangements are not finalised within a maximum of 5 years, a power of Ministerial initiative in the matter would be invoked.

Voluntary Sector Funding

Questions (166, 170, 171)

Brian Walsh

Question:

166. Deputy Brian Walsh asked the Minister for the Environment, Community and Local Government if an application for funding for an organisation (details supplied) will be reviewed; and if he will make a statement on the matter. [31779/14]

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Seán Kyne

Question:

170. Deputy Seán Kyne asked the Minister for the Environment, Community and Local Government if he will reconsider the position of funding for Deaforward in view of the important services provided for the deaf community across the country; and if he will make a statement on the matter. [31800/14]

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Derek Nolan

Question:

171. Deputy Derek Nolan asked the Minister for the Environment, Community and Local Government if he will reinstate funding for the Irish Deaf Society; and if he will make a statement on the matter. [31851/14]

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Written answers

I propose to take Questions Nos. 166, 170 and 171 together.

The funding scheme to support national organisations in the community and voluntary sector aims to provide multi-annual funding to national organisations towards core costs associated with the provision of services. A new round of funding was advertised for applications earlier this year. Pobal was asked to undertake an assessment of the applications received, given that organisation's significant experience and expertise of both the design of assessment criteria and completion of assessment functions. My predecessor was anxious to make funding available to as many organisations as possible within the prevailing resource constraints and approved 55 applications for funding for the two-year period from 1 July 2014 to 30 June 2016. The Irish Deaf Society is not one of the organisations approved for funding on this occasion.

Pobal has put in place a dedicated team to deal with any inquiries from applicants and to provide detailed feedback. There is also an appeals process and Pobal has provided applicants with detailed information on this process. As this appeals process is now live, it would not be appropriate for me to make any further comment on the funding process or on the application of any particular organisation.

Shared Ownership Scheme

Questions (167, 168)

Catherine Murphy

Question:

167. Deputy Catherine Murphy asked the Minister for the Environment, Community and Local Government if he will amend the shared ownership scheme operated by local authorities whereby the redemption figure carries a credit on the rental side, based on actual rent paid, in a similar way to that of the discount applied in the tenant purchase scheme; and if he will make a statement on the matter. [31790/14]

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Catherine Murphy

Question:

168. Deputy Catherine Murphy asked the Minister for the Environment, Community and Local Government if any consideration is being given to the shared ownership scheme for those who do not quality for other local authority loans, who cannot raise the finance elsewhere and who will then not be in a position to purchase the rental side of the loan; if rental affordability and arrears are part of that consideration; and if he will make a statement on the matter. [31791/14]

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Written answers

I propose to take Questions Nos. 167 and 168 together.

The Government’s 2011 Housing Policy Statement announced the standing down of all affordable housing schemes, including the shared ownership scheme. In 2013, the Housing Agency was asked to conduct a standalone review of the Shared Ownership scheme, including identification of the main difficulties and recommendations for mitigating measures. While an initial draft of the review has been received from the Agency a number of issues have been identified that need further detailed financial analysis. For example, full information on the status of each local authority’s loan book is required in order to accurately determine the implications of any possible solutions to shared ownership issues for local authority debt management generally.  This substantial data collection project involving my Department, the Local Government Management Agency and the local authorities themselves is under way. It will be a number of months before sufficient data have been collected in order to complete the requisite analysis to finalise the review. Pending full conclusion of this review, my Department issued a circular letter to local authorities setting out some of the options and interim actions that might be explored to alleviate the difficulties of those in shared ownership distress such as allowing use of the Mortgage Arrears Resolution Process and room rental for Shared Ownership mortgage holders. It is accepted that these proposals are not a complete solution to the issues that arise for such mortgage holders but are intended as an interim measure pending outcome of the review. I fully recognise that shared ownership home owners, among others, have been affected by issues such as unemployment and possible negative equity. In such cases borrowers should proactively engage with their lenders, whether a commercial financial institution or a local authority, to seek to avail of one of the options available to provide sustainable solutions to distressed mortgages.

The Mortgage Arrears Resolution Process, already in place in respect of commercial mortgages, is now being implemented across all local authorities. In cases of acute mortgage distress, homeowners also have the option of seeking to avail of the legal process now in place to deal with personal insolvency.

On foot of the recommendations of the Keane Report on mortgage arrears, the Government launched a Mortgage to Rent scheme on a pilot basis in February 2012. This scheme was extended nationally in June 2012, targeting those low income families whose mortgage situation is unsustainable and where there is little or no prospect of a significant change in circumstances in the foreseeable future. The scheme ensures that the family remains in their home, while ownership is transferred to an Approved Housing Body and the family becomes a tenant of the body concerned. Eligibility requirements are in line with other forms of social housing support. This Mortgage to Rent scheme for local authority borrowers in arrears, which was piloted in two local authority areas, Westmeath County Council and Dublin City Council, was rolled out nationally in February 2014.

Mortgage to Rent Scheme Applications

Questions (169)

Michael McGrath

Question:

169. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government the position regarding a mortgage to rent case in respect of persons (details supplied) which is currently awaiting approval; and if he will make a statement on the matter. [31796/14]

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Written answers

An application for provisional approval in this case was received by my Department on 9 June 2014 and this provisional approval was granted the following day.

My Department is awaiting a further submission for full funding approval once an appropriate approved housing body has been identified by the Housing Agency and the proposal progresses to that stage.

Questions Nos. 170 and 171 answered with Question No. 166.
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