Thursday, 16 Jul 2015

Written Answers Nos. 805-822

Appointments to State Boards

Questions (805)

Lucinda Creighton

Question:

805. Deputy Lucinda Creighton asked the Minister for Communications, Energy and Natural Resources if he is responsible for all board appointments where such power to appoint persons to State boards is vested in him by statute; if any politically appointed State employee outside of his Department is involved in decision-making concerning such appointments, in particular, if, during the lifetime of the Government, a named person (details supplied) has had any influence over any appointments made by him; if he or officials from his Department have corresponded with that person regarding the composition of and appointments to State boards to which he has statutory power to make appointments; and if he will make a statement on the matter. [30106/15]

Written answers

Minister for Communications, Energy and Natural Resources

As Minister I am responsible for board appointments where the power to appoint persons to State bodies is vested in me by statute. In November 2014, the Government approved new Guidelines on Appointments to State Boards with the objective of opening up the process to the largest possible pool of suitable candidates. The Guidelines establish a new and transparent process operated by the Public Appointments Service (PAS). While it is ultimately the responsibility of the relevant accountable Minister or the Government, where appropriate, to make appointments, PAS will support the process by seeking to ensure that a sufficient list of suitable candidates is available for consideration.

No record exists of any correspondence between the person referred to and my Department in relation to the matters outlined in the Question.

Departmental Funding

Questions (806)

Denis Naughten

Question:

806. Deputy Denis Naughten asked the Minister for Communications, Energy and Natural Resources the current and capital funding allocated to his Department; the underspend or overspend in 2015 to date under each category based on his Department's spending profile; the funding made available within and external to his Department's functions to support innovation; and if he will make a statement on the matter. [30121/15]

Written answers

Minister for Communications, Energy and Natural Resources

The total current and capital funding allocated to my Department in 2015 is €419.15m. The following table details expenditure by my Department against profile to end June 2015:

Subhead	Profile to end June	Expenditure to end June	Variance from Profile
	0	0	0
Communications
A1 - Administration - Pay	2,164	1,950	-214
A2 - Administration – Non Pay	663	562	-101
A3 - Information and Communications Technology Programme	6,929	4,085	-2,844
A4 - Multimedia Developments	2,196	1,058	-1,138
A5 - Information Society	2,298	1,244	-1,054
A6 - Other Capital including Capital contingency	0	0	0
Broadcasting
B1 - Administration – Pay	459	414	-45
B2 - Administration – Non Pay	227	192	-35
B3 - Grant to RTÉ for Broadcasting Licence Fees (Grant – in – Aid)	89,000	85,500	-3,500
B4 - Payment to an Post for Collection of TV Licence Fees	5,509	4,980	-529
B5 - Deontas i Leith Theilifís na Gaelige	21,771	21,772	1
B6 - Broadcasting Fund	7,051	6,784	-267
Energy
C1 - Administration - Pay	2,116	1,908	-208
C2 - Administration – Non Pay	802	681	-121
C3 - SEAI Administration & General Expenses	3,534	3,301	-233
C4 - Sustainable Energy Programmes	16,223	12,111	-4,112
C5 - Energy Research Programmes	2,234	1,049	-1,185
C7 - Gas Services	10	12	2
C8 - Subscriptions to International Organisations	65	35	-30
Natural Resources
D1 - Administration - Pay	2,995	2,700	-295
D2 - Administration – Non Pay	1,141	1,014	-127
D3 - Petroleum Services	349	180	-169
D4 - Mining Services	1,391	363	-1,028
D5 - GSI Services	4,689	2,786	-1,903
D6 - Ordnance Survey Ireland (Grant – in – Aid)	3,000	3,000	0
D7 - Subscriptions to International Organisations	123	26	-97
Inland Fisheries			0
E1 - Administration - Pay	416	375	-41
E2 - Administration – Non Pay	157	133	-24
E3 - Inland Fisheries	12,938	13,659	721

In relation to funding to support innovation, Subheads A3 (ICT Programmes), A4 (Multimedia Developments), A5 (Information Society), C5 (Energy Research Programmes) and D5 (GSI Services) are aimed at providing support for innovation. This funding amounts to just over €32.5m in 2015.

Departmental Expenditure

Questions (807)

Denis Naughten

Question:

807. Deputy Denis Naughten asked the Minister for Communications, Energy and Natural Resources if his Department or agencies under the authority of his Department have performed an assessment of the potential savings to be accrued if current paper-based application processes by members of the public were replaced with a fully online application system; and if he will make a statement on the matter. [30136/15]

Written answers

Minister for Communications, Energy and Natural Resources

My Department is primarily focused on setting policy in the Communications, Energy and Natural Resources areas and does not currently operate schemes which involve high volume paper based applications by members of the general public. Where business needs and customer service requirements support it, the Department has developed a number of online systems which are mainly geared to business users. Application processes in respect of schemes run by Agencies under the aegis of my Department is a day to day matter for those organisations. I will request the relevant Agencies to respond directly to the Deputy in the matter.

Public Service Obligation Levy Payments

Questions (808)

Michelle Mulherin

Question:

808. Deputy Michelle Mulherin asked the Minister for Communications, Energy and Natural Resources the current position on the future of public service obligation payments to Tynagh and Aughinish power plants; and if he will make a statement on the matter. [30148/15]

Written answers

Minister for Communications, Energy and Natural Resources

Tynagh Energy and Aughinish Alumina were awarded 10 year contracts subsequent to a competition run by the Commission for Energy Regulation (CER) in 2005 to provide urgently required capacity to the electricity system. The purpose of the scheme was to ensure security of supply in the framework of continuous electricity demand growth at that time. These plants will transition out of subsidy consequent to the expiration of their contracts during 2016. A correction amount, known as the R-factor, will continue to be payable for the following years, based on the difference between a supplier’s ex-ante estimate of entitlements under the relevant PSO scheme and the actual entitlements determined two PSO periods later through the submission of audited, verifiable figures to the CER. The PSO levy has been in place since 2001 and is the overall support mechanism for generation constructed for security of supply purposes, including peat generation, and for the development of renewable electricity. It is designed to compensate electricity suppliers for the additional costs they incur by purchasing electricity generated by these producers. The PSO levy is vital to enable Ireland to meet its 40% target for electricity generated from renewable sources by 2020, which in turn is important for the achievement of Ireland's 16% EU 2020 target for renewable energy.

The CER determines the PSO levy which is a charge on all electricity customers without exception. The legal basis for the PSO levy and its method of calculation are set out in Regulations made under the Electricity Regulation Act 1999 (S.I. No. 217 of 2002). The annual PSO levy amount for 2014/2015 is €335.4 million. This equates to €64.37 per annum for residential customers, €221.66 per annum for small to medium sized business customers and €34.20/kVA for medium and large customers.

The CER published, for consultation, its proposed decision paper on the 2015/16 annual PSO levy on 12 June which CER computed, in accordance with the legislation, to be €304.8m million. This equates to €56.52 per annum for residential customers, €200.98 per annum for small to medium sized business customers and €30.96/kVA for medium and large customers. A final decision will issue by the CER by 1 August 2015.

Renewable Energy Feed in Tariff Scheme Implementation

Questions (809)

Michelle Mulherin

Question:

809. Deputy Michelle Mulherin asked the Minister for Communications, Energy and Natural Resources his views on the recent energy bulletin from the National Competitiveness Council that recommended ending the renewable energy feed in tariff programme 2 when it expires in 2017, and for the divesting of additional Electricity Supply Board price setting power generation; and if he will make a statement on the matter. [30158/15]

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 overall energy requirements from renewable sources by 2020. To meet this target, Ireland is committed to achieving 40% renewables in electricity, 12% in heat and 10% in transport. While the cost of any shortfall has yet to be established, the SEAI has estimated that it could be in the range of €100 million to €150 million per percentage point shortfall. To date onshore wind energy has been the most cost effective renewable technology in the Irish electricity market, contributing most towards the achievement of the 2020 target. There is also potential to diversify our renewable electricity generation portfolio through our indigenous resources such as ocean, bioenergy and solar energy.

The cost-effectiveness of support for renewables is a key consideration in the work now underway in my Department to consider the appropriateness and design of any new support scheme for renewable electricity. The initial public consultation on the scheme will be published shortly, a key component of which will be consideration of the available technologies, their cost effectiveness and the level of any support required.

In relation to the issue of ESB divestment of additional generation plant, market power in the generation market has been the subject of robust and stringent regulation via market power mitigation measures by the regulators North and South since 2007, when the Single Electricity Market (SEM) was set up. The SEM is currently the subject of redesign to ensure compliance with the EU target model for the internal energy market. The market will be called the Integrated Single Electricity Market (I-SEM). The SEM Committee, consisting of both Regulators and an Independent Member, which is redesigning the market, has recently sought comments to identify to what extent there could be market power in the I-SEM and to decide on an associated regulatory market power mitigation strategy and measures, as part of the market power mitigation workstream of the redesign project. This workstream will evaluate the potential for the exercise of market power within the I-SEM wholesale market, due to go live in 2017, and consider the implications of this for the range of regulatory market power mitigation measures that may be employed.

Bord na Móna

Questions (810, 816, 817, 818, 819)

Robert Troy

Question:

810. Deputy Robert Troy asked the Minister for Communications, Energy and Natural Resources the measures he has taken to resolve all human resource issues in Bord na Móna; and if he will make a statement on the matter. [30190/15]

Robert Troy

Question:

816. Deputy Robert Troy asked the Minister for Communications, Energy and Natural Resources his views that employees of Bord na Móna have been asked to take pay cuts but senior management has not. [30311/15]

Robert Troy

Question:

817. Deputy Robert Troy asked the Minister for Communications, Energy and Natural Resources if he is aware that millions of euro has been spent on consultants at Bord na Móna for the past six years with no benefit to the company and at a high cost to the workforce; his views that the high turnover of management that was introduced to the company by the former chief executive officer is a reflection on working conditions. [30312/15]

Robert Troy

Question:

818. Deputy Robert Troy asked the Minister for Communications, Energy and Natural Resources if he is aware that the Bord na Móna company chairman will not allow worker directors of the company meet the workers (details supplied). [30313/15]

Robert Troy

Question:

819. Deputy Robert Troy asked the Minister for Communications, Energy and Natural Resources his plans to investigate issues regarding the management and decisions of Bord na Móna for the past six years, problems with minutes of board meetings, and the treatment of employees. [30314/15]

Written answers

Minister for Communications, Energy and Natural Resources

I propose to take Questions Nos. 810 and 816 to 819, inclusive, together.

Bord na Móna is a commercial State company operating under the Turf Development Acts 1946 to 1998. The matters raised by the Deputy are operational in nature and not ones in which I, as Minister, have any function.

Bord na Móna is facing significant business challenges in the context of the deregulation of the electricity market and increasingly competitive and challenging environments across all its business areas. I understand that in order to ensure its continued success, the company is implementing a programme to transform all areas of its operations and structure, the key objective of which is to improve business effectiveness and efficiency. In that regard, I have been advised that management and union representatives are currently involved in discussions under the auspices of the Labour Relations Commission on a range of issues relating to business transformation in the company. These discussions include areas related to the terms and conditions of employees. It would not be appropriate for me to comment on this matter while these discussions are in progress.

Bord na Móna

Questions (811)

Robert Troy

Question:

811. Deputy Robert Troy asked the Minister for Communications, Energy and Natural Resources if he is aware of the recently held Oireachtas communications committee meeting where the chairperson and the chief executive officer of Bord na Móna were present and heard a number of concerns raised across the political spectrum; if he has discussed the concerns with the chairman or the chief executive officer; and his plans to ensure the issues raised are dealt with. [30192/15]

Written answers

Minister for Communications, Energy and Natural Resources

I am aware that the Chair and Chief Executive of Bord na Móna have recently appeared before the Joint Oireachtas Committee on Transport and Communications to discuss the cessation of peat briquette production at two Bord na Móna factories at Littleton, County Tipperary and Derrinlough, County Offaly. I understand that a range of issues were discussed at the meeting most of which were operational in nature and not ones in which I, as Minister, would have a function. As a matter of routine, I regularly meet with the Chair and senior management of the Company on a range of policy issues but the company has not discussed the issues raised in the course of the Joint Oireachtas Committee meeting with me since their meeting with the Committee.

Departmental Reports

Questions (812)

Billy Kelleher

Question:

812. Deputy Billy Kelleher asked the Minister for Communications, Energy and Natural Resources when his Department's annual report for 2014 will be published. [30209/15]

Written answers

Minister for Communications, Energy and Natural Resources

My Department published its 2014 Annual Report on 30 June 2015. The report is available on my Department's website, www.dcenr.ie.

National Postcode System Establishment

Questions (813, 814)

Michael Colreavy

Question:

813. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources his views on apparent discrepancies in a report (details supplied) regarding the postcode procurement process; and if he will make a statement on the matter. [30281/15]

Michael Colreavy

Question:

814. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources his views on a matter (details supplied) regarding the European Commission investigation into the postcode procurement process; and if he will make a statement on the matter. [30282/15]

Written answers

Minister for Communications, Energy and Natural Resources

I propose to take Questions Nos. 813 and 814 together.

As I stated in reply to Questions Nos 258, 259, 266 and 267 of 24 June 2015, my Department received correspondence from the European Commission in August, 2012 regarding certain aspects of the procurement process for the National Postcodes System. The case was fully examined by the Commission which informed the Department in November, 2013 that the matter had been closed on the basis that the Commission could not establish any breach of EU procurement law that would justify the opening of an infringement procedure. The Irish authorities, however, were requested to take measures in relation to the clarity of language to be used in relation to bids by consortia in future procurements.

In reply to a question from the European Parliament on the procurement process for the postcodes project, the then European Commissioner for the Internal Market stated on 14 May 2014 as follows:

"The Commission received a complaint regarding the tendering procedure in question. It conducted an investigation into the matter.

After having received the requested clarifications from the Irish authorities, the Commission closed the file. Based on the available information, the Commission departments could not establish any violation of EU public procurement law that would justify the opening of an infringement procedure."

In April, 2015 in further correspondence, the EU Commission asked for additional information on the measures that have been adopted by the Irish authorities. My Department, having consulted with the Office of Government Procurement, replied to this request by way of a letter to the European Commission on 10 June.

Bord na Móna

Questions (815)

Robert Troy

Question:

815. Deputy Robert Troy asked the Minister for Communications, Energy and Natural Resources his views on the high number of employees who have reported bullying in the workplace with Bord na Móna; and if he thinks there are management concerns. [30310/15]

Written answers

Minister for Communications, Energy and Natural Resources

It is understood from the Board of Bord na Móna that there are appropriate systems in place to deal with any allegations of bullying. Any employee who has concerns in this regard should bring it to the attention of the appropriate authorities in Bord na Móna.

Questions Nos. 816 to 819, inclusive, answered with Question No. 810.

Departmental Funding

Questions (820)

Michael Colreavy

Question:

820. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources the level of funding made available as part of the BenefIT digital skills training grant scheme; and the way this funding is administrated. [30315/15]

Written answers

Minister for Communications, Energy and Natural Resources

My Department’s BenefIT programme is a key mechanism under the National Digital Strategy to ensure that citizens and communities are empowered and motivated to use the internet, and thereby reap the full economic and social benefits of a digital society. The Programme provides funding to community, voluntary and not for profit organisations for the delivery of basic digital literacy training to citizens in over 700 locations nationwide. Since the BenefIT programme launched in 2008, over 129,000 training places have been delivered at an overall cost of some €7.2m. The current round, BenefIT 4, commenced in July 2013 and, in December 2014, I extended its reach and impact with the introduction of a community strand. The total expenditure to date in respect of the 46 organisations funded under BenefIT 4 is some €3.2m.

Full details of the eligibility criteria for projects approved under the programme are set out in the BenefIT 4 Guidelines which are available on my Department's website at www.dcenr.gov.ie, along with a list of all approved organisations.

Funding is dependent on the achievement of targets and delivery of commitments by the organisations which have been approved for grant aid. My officials engage closely with them, monitor performance and the achievement of training targets on an ongoing basis, and carry out unannounced visits to training sessions as well as phone audits. All trainees complete an online survey which is used by my officials to continuously monitor the impact of the training.

This is an effective programme delivering a wide range of positive impacts and value for money.

Gas Networks Ireland

Questions (821)

Brendan Smith

Question:

821. Deputy Brendan Smith asked the Minister for Communications, Energy and Natural Resources the proposals in place to extend the natural gas supply to Cavan town; and if he will make a statement on the matter. [30336/15]

Written answers

Minister for Communications, Energy and Natural Resources

The development and expansion of the natural gas network is a commercial matter for Gaslink, which is mandated under Section 8 of the Gas Act 1976, as amended, to develop and maintain a national system for the supply of natural gas that is both economical and efficient. The Commission for Energy Regulation (CER) is statutorily responsible for all aspects of the assessment and licensing of prospective operators who wish to develop and/or operate a gas distribution system within the State. I have no statutory function in relation to the connection of towns to the gas pipeline network.

In 2006, the CER approved a Gas Connections Policy which enabled assessment of the feasibility of connecting new towns to the gas network. In order for any town to be connected to the gas network, certain economic criteria need to be satisfied.

The policy provides that the construction and operating costs of connecting a town, or group of towns, to the network are recovered through the consumption of gas and the associated network charges. The distance of a town from the gas network is the major factor determining the costs of building a gas pipeline. The anticipated industrial or commercial gas usage in the town largely determines the revenue from gas network charges which must balance the connection costs. Uneconomic gas pipeline projects would unfairly increase energy costs for all gas consumers.

Under the 2006 network connections policy Gaslink has completed three comprehensive studies to assess nearly 80 towns for connections to the gas network with the result that more than twenty new towns have been connected in recent years, including Cootehill in Co. Cavan.

As the successor to Gaslink, Gas Networks Ireland (GNI) will continue to review the towns which did not qualify for connection in 2010 as well as other towns. The key factor which would qualify a town or group of towns in any future review would be a significant increase in demand for natural gas, usually as a result of the addition of a new large industrial or commercial facility.

The CER recently hosted a consultation on a submission received by it from GNI proposing revisions to the existing gas connections policy, as mentioned above. The consultation period has now ended and a decision is expected shortly.

Broadband Service Provision

Questions (822)

Martin Heydon

Question:

822. Deputy Martin Heydon asked the Minister for Communications, Energy and Natural Resources the discussion his Department has had with Eircom on the company's recently announced rural broadband investment plans; the way he envisages that investment will tie in with the national broadband plan in terms of timing and implementation, given that areas now included by Eircom will fall outside the scope of the national plan; and if he will make a statement on the matter. [30360/15]

Written answers

Minister for Communications, Energy and Natural Resources

Yesterday, I published for public consultation the Government's draft Intervention Strategy which sets out how we propose to ensure the provision of high-speed broadband to premises in the intervention area. This consultation runs until 14 September next. The draft Intervention Strategy and associated expert reports are now available on www.broadband.gov.ie. My Department continues to assess all new and existing industry investment commitments, including those recently announced by eircom, to ensure that they will deliver the services they promise. This is critically important as we get closer to the launch of the competitive tender phase of the National Broadband Plan.

Having assessed the latest industry investment plans, my Department will update the proposed intervention area in the autumn.