Written Answers Nos. 246-256
246. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine if he is considering applying for an amendment to Ireland's rural development programme at European Union level to create financial instruments to draw down on European Investment Bank funding sources and to provide affordable credit to farmers; and if he will make a statement on the matter. [16573/16]
View answerThe European Commission and the European Investment Bank (EIB) have outlined a model guarantee instrument for agriculture, developed within the framework of their Memorandum of Understanding on co-operation in agriculture and rural development within the EU. The model instrument aims to help ease access to finance for farmers and other rural businesses. Member States and regions can adapt and use this model to set up financial instruments funded by their rural development programmes (RDPs) under the European Agricultural Fund for Rural Development (EAFRD). No such funding has been allocated by the EIB or under Ireland’s RDP to date.
I am considering including Financial Instruments (FIs) in Ireland’s Rural Development Programme. Financial instruments can take the form of loans, guarantee funds or equity investments and the funding for any such FIs would have to draw on Ireland’s existing RDP allocation of European funding as well as National Exchequer funding. It is also possible to incorporate funding from other sources for such instruments.
In order to include a FI as a measure in the RDP an Ex-Ante Evaluation is required by EU regulation and therefore my Department will, in the near future, invite tenders for the carrying out of such an assessment. This tender will also look at the provision of a FI under the European Maritime Fisheries Fund Operational Programme.
The Ex-Ante Assessment can take between 3 months to a year to complete. It includes a range of steps and must assess:
1. Market analysis – need to prove that FIs are required due to investment gap. This gap must be quantified.
2. Estimation of value added of FIs
3. Estimation of public and private resources to be raised
4. Reflection on lessons from other instruments
5. Development of a proposed investment strategy (i.e. choice of instrument) and description of the advantages and disadvantages of different types of financial products
6. Discussion about how results will contribute to RDP objectives
7. Revision and updating of the ex-ante assessment in the case of changing market conditions.
Once the Ex-Ante Assessment is done, an agreement must be reached between my Department and any other potential stakeholders/financial institutions on a clear investment strategy that is developed from the gaps, if any, identified in the Ex-Ante Assessment. Following this, a new measure description would have to be drafted and inserted into the RDP by way of an amendment.
247. Deputy Charlie McConalogue asked the Minister for Agriculture, Food and the Marine the number of participants and the amount of funding remaining under the superlevy instalment scheme; if he will consider postponing the collection of the remaining instalment payments for up to two years, given the severe market volatility in the sector and associated cash flow difficulties; if these fines will be imposed at European Union level should he pursue a postponement; and if he will make a statement on the matter. [16574/16]
View answerA breakdown of the sums outstanding under the super Levy Instalment Scheme is outlined in the following table. The rules governing the EU milk quota regime, including the super levy system for production above quota, were set at EU level and it is not within the gift of individual Member States to amend the rules.
However at the request of Ireland and some other member states the EU Commission introduced a provision last year permitting payment of the levy in three annual instalments, without interest, on the understanding that the full amount of the levy was paid to the Commission by the Member State in 2015. The Scheme required applicants to pay at least one third of their levy by October 2015 with the balance to be paid in 2016 and 2017. Ireland was one of the few Member States to implement this scheme and make it available to its farmers. The scheme design was agreed in advance with the co-ops and farm organisations here.
As part of the discussions in the run-up to the March Council of Agriculture Ministers, Ireland proposed a further deferral of the payment to 2017 and 2018, to ease the financial burden on liable farmers in 2016. I also raised the matter with Commissioner Phil Hogan, in our recent bilateral meeting, as well as at the recent Council of Ministers meeting and encouraged him to reflect again on whether a legal basis could be found to facilitate a further deferral in super levy repayments for farmers. However the European Commission advised that the legal basis for the Regulations under-pinning the scheme are no longer in existence and therefore further amendments were not possible. While Ireland has again raised the matter with the Commission, we understand that the view of its legal services remains that there is no legal basis for any adjustment to the timelines provided for in the relevant regulations.
I would like to reassure the Deputy that I am fully aware of the pressures on dairy farmers right now and I am committed to working with all players in the sector to address these issues and ensure that we have a sustainable dairy sector going forward. As one of the proposers of the Dairy Forum my goal is to ensure that it continues to work constructively as a vehicle for addressing issues of concern to farmers and others in the sector and I have called a meeting for next Tuesday 21 June. The Forum has come forward with some good initiatives for farmers already, including an initiative on improving cash flow planning at farm level, which will be rolled out shortly.
|
County |
Number of applicants |
Deferred Super Levy € |
|
Carlow |
69 |
497,908 |
|
Cavan |
122 |
1,224,985 |
|
Clare |
30 |
272,251 |
|
Cork |
920 |
8,465,299 |
|
Donegal |
31 |
782,527 |
|
Dublin |
9 |
133,636 |
|
Galway |
78 |
961,368 |
|
Kerry |
146 |
1,933,785 |
|
Kildare |
55 |
506,313 |
|
Kilkenny |
387 |
2,892,722 |
|
Laois |
192 |
1,584,850 |
|
Leitrim |
3 |
20,724 |
|
Limerick |
166 |
1,678,143 |
|
Longford |
23 |
203,038 |
|
Louth |
54 |
697,015 |
|
Mayo |
5 |
59,233 |
|
Meath |
170 |
1,757,945 |
|
Monaghan |
66 |
883,001 |
|
Offaly |
87 |
853,049 |
|
Roscommon |
2 |
17,953 |
|
Sligo |
1 |
54,869 |
|
Tipperary |
436 |
4,273,994 |
|
Waterford |
292 |
2,217,157 |
|
Westmeath |
59 |
830,780 |
|
Wexford |
266 |
2,158,123 |
|
Wicklow |
72 |
627,021 |
|
Totals |
3741 |
35,587,689 |
Being paid in 10 equal amounts - 5 payments in 2016 and 5 payments in 2017.
248. Deputy Éamon Ó Cuív asked the Minister for Agriculture, Food and the Marine if legal issues have been raised with him in relation to the request for tender he issued on 23 May 2016 to award a concession services contract to a sole provider of identification tags for beef and dairy cattle; if he intends to defer this request for tender until the legal implications raised are fully examined; and if he will make a statement on the matter. [16588/16]
View answerMy Department has recently published a Request for Tenders (RFT) for the supply of bovine identification tags by a single supplier. The legal issues raised in relation to the RFT are being examined by my Department in consultation with its legal advisors. In the meantime, my Department has decided to extend the closing date for the receipt of tenders for a short period.
249. Deputy Peadar Tóibín asked the Minister for Agriculture, Food and the Marine the properties his Department and agencies under its remit leased; the number they leased on upward-only rents and the number of the lessors who were involved with the National Asset Management Agency or with any of the State banks; and the details of each lease. [16593/16]
View answerIn general, all issues in relation to leases for Government Departments/Offices, including my Department, are a matter for the Office of Public Works.
There is one building in Athenry which is leased by my Department at an annual cost of €80,000, plus campus charges. The lease agreement which runs for five years with effect from November 2012 is not an upward - only rent lease. Neither is the property leased from NAMA or a state bank.
The leasing of property by State Agencies is an operational matter for the Agencies themselves.
250. Deputy Timmy Dooley asked the Minister for Communications, Energy and Natural Resources his policy on the public service broadcasting charge as was committed to under the previous Government; and if he will make a statement on the matter. [16396/16]
View answerI have no plans to re-introduce the proposals in relation to a Public Service Broadcasting Charge.
I recognise the important part that public service broadcasters play in our democratic society. The provision of stable and adequate funding is essential to ensuring the continued delivery of their role in this regard. I am very much aware, however, of the challenges that face the existing TV Licence system and, in that context, my Department is currently examining a number of options with a view to strengthening the system, including measures aimed at reducing the current, unacceptably high levels of evasion.
251. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources his plans to reduce the importation of fossil fuels, given the need to meet carbon dioxide reduction targets; if he is satisfied with the attainability of existing targets; and if he will make a statement on the matter. [16536/16]
View answer260. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources his continuing discussions with other Departments on reducing dependency on fossil fuels, avoiding carbon penalty points and developing the agrifood sector; and if he will make a statement on the matter. [16641/16]
View answerI propose to take Questions Nos. 251 and 260 together.
Achieving our climate and energy objectives requires a whole of Government approach and I am working closely with relevant colleagues in this regard, including with the Minister for Agriculture, Food and the Marine, who has primary responsibility for the agrifood industry.
The Energy White Paper, Ireland's Transition to a Low Carbon Energy Future 2015-2030, published in December last, sets out a vision and a framework to guide Irish energy policy and the actions that Government intends to take in the energy sector from now up to 2030, aimed at transforming Ireland's fossil-fuel based energy sector into a clean, low carbon system by 2050.
The overarching objective of the Government's energy policy is to ensure secure and sustainable supplies of competitively priced energy to all consumers. A well balanced fuel mix that provides reliable energy, minimises costs and protects against supply disruptions and price volatility, is essential to Irish consumers as we make the transition to a low carbon system. By 2050, greenhouse gas emissions from the energy sector will be reduced by between 80% and 95%, compared to 1990 levels in line with the EU objective. Fossil fuels will remain a progressively decreasing part of the energy mix as we transition to a largely decarbonised energy system by 2050, and significant progress is already being made in increasing the share of renewables in that mix.
The 2009 EU Renewable Energy Directive sets Ireland a legally binding target of meeting 16% of our energy requirements from renewable sources by 2020. Ireland is committed to achieving this target through meeting 40% of electricity demand, 12% of heat and 10% of transport from renewable sources of energy, with the latter transport target also being legally binding. A range of support measures designed to meet our binding target has been adopted and although good progress has been made to date, meeting the 16% target remains challenging.
Provisional data from the Sustainable Energy Authority of Ireland (SEAI) indicates we had reached 9.2% of the overall 16% target at the end of 2015. In 2014, 8.6% of Ireland’s overall energy requirements were met from renewable sources and SEAI has estimated that this avoided €346 million of fossil fuel imports.
The Renewable Energy Directive sets out arrangements for Member States (MS) to purchase compliance, where necessary, and thereby avoid infringement proceedings being issued by the EU Commission, including a flexibility measure, which is known as a statistical transfer. While the precise cost of purchasing statistical transfers or any potential shortfall in Ireland's target of 16% has yet to be established and will depend on a number of factors, the focus remains firmly on meeting our 2020 targets.
252. Deputy Catherine Murphy asked the Minister for Communications, Energy and Natural Resources to request Eir to outline the status of the upgrading of the Coolcarrigan exchange near Coill Dubh, County Kildare, given its negative impact on small businesses and households in the area; and if he will make a statement on the matter. [16545/16]
View answerThe provision of electronic communications networks and services occurs within a fully liberalised market since 1999. Investment decisions by the telecommunications networks providers in that market, including investment decisions regarding the upgrading of exchanges and the associated cabling infrastructure to make high speed broadband and internet services available are taken purely on commercial grounds by the network owner, having regard to the predicted investment cost and the anticipated revenue returns from any such investment. As Eir is a private company, I have no role or statutory authority to intervene in these matters.
253. Deputy James Browne asked the Minister for Communications, Energy and Natural Resources the status of the roll-out of broadband in County Wexford; and if he will make a statement on the matter. [16559/16]
View answerThe National Broadband Plan (NBP) aims to deliver high speed services to every city, town, village and individual premises in Ireland. The Programme for a Partnership Government commits to the delivery of the NBP as a matter of priority. This is being achieved through private investment by commercial telecommunications companies and through a State intervention in areas where commercial investment is not forthcoming. The formal procurement process for the State Intervention commenced in December 2015. The High Speed Broadband Map, which is available at www.broadband.gov.ie shows the extent of the State Intervention area, which is the subject of procurement. The areas marked BLUE represent those areas where commercial providers are either currently delivering or have previously indicated plans to deliver high speed broadband services. The Department continues to monitor the commercial deployment plans in the BLUE area to ensure that those services are delivered. The areas marked AMBER on the High Speed Broadband Map represent the target areas for the State Intervention. The map provides information on a county by county basis with a breakdown of coverage across the townlands in every county including County Wexford.
Over 750,000 premises are the focus for the procurement process, which formally commenced in December 2015 with the publication of the Pre-Qualification Questionnaire ( 'PQQ') and Project Information Memorandum. Five responses were received from prospective bidders to this stage of the competitive procurement process by the deadline of 31 March 2016. The second stage in the procurement process will be a formal invitation to Participate in Dialogue (ITPD) to qualifying bidders. I expect that my Department will move to this stage in the next month. The third stage of the procurement process involves the issue of final tender documentation which follows the dialogue process. Following the submission of final tenders by bidders, a winning bidder(s) will be selected for the contract which will comprise one or two lots as set out in the NBP Intervention Strategy. The Department will then enter into formal contract negotiations with the winning bidder(s). It is expected that contract(s) will be awarded by June 2017.
As part of the competitive process, the Department will engage with winning bidder(s) on the best roll-out strategy, in order to target areas of particularly poor service, business needs and/or high demand. This will need to be balanced with the most efficient network roll-out plan. A prioritisation programme will be put in place in this regard, in consultation with the Minister for Regional Development, Rural Affairs, Arts and the Gaeltacht. A detailed roll-out plan for the network will be published once contract(s) are in place.
The Programme for a Partnership Government commits also to measures to assist in the roll-out of the network once a contract is awarded. In this regard, Minister Humphreys will lead on the establishment of county or regional broadband taskforces, working with Local Authorities, Local Enterprise Offices, LEADER Groups and other relevant agencies to help accelerate the broadband network build in rural Ireland, once a contract(s) has been awarded.
254. Deputy Éamon Ó Cuív asked the Minister for Communications, Energy and Natural Resources if he is aware of the dramatic increase in the public service obligation levy on electricity customers in recent years and the impact the recently proposed increase of €7,500 per month by the Commission for Energy Regulation will have on industry in 2016 and in 2017 and on businesses that have a 2,000 kVA requirement; the amount of the levy that relates to the burning of turf and that relates to wind energy; if he will review the policy in relation to the levy to reduce its effect on electricity costs which are among the highest in the European Union; and if he will make a statement on the matter. [16589/16]
View answerThe Public Service Obligation (PSO) has been in place since 2001. The PSO levy supports a number of schemes designed to facilitate the Government's electricity policy objectives for renewables, indigenous fuels and security of supply. It also supports employment in the renewables industry and in the peat industry.
The calculation of the level of the PSO is a matter for the Commission for Energy Regulation (CER), which has published a consultation on a proposed levy of €441 million for 2016-2017. This is an increase of 36% on the levy amount for 2015/2016. The proposed levy amount for 2016-2017 equates to €79.48 per annum for domestic consumers, €279.48 per annum for small business customers and €44.94/kVA per annum for medium to large businesses. The biggest drivers for the proposed levy increase are the lower predicted wholesale market electricity price and increased deployment of renewables.
Of the proposed levy total, €137.7 million will be used to support electricity generated by peat-burning plants with a capacity of 250 MW. The indicative support for renewable electricity generation in 2016/2017 is €334.1 million. This will support over 2,500 MW of renewable energy, including onshore wind, offshore wind, biomass, anaerobic generation, biomass landfill gas and biomass combined heat and power. The vast majority of supported renewable generation is wind power. It should be noted that the recently published PSO Levy paper is a proposed decision and is open for consultation until 27 June 2016. In accordance with its statutory obligations, the CER will publish the final PSO Levy Decision before 1 August 2016.
Recent international studies have shown that Ireland has had one of the lowest per unit supports for renewable energy in the European Union
Responsibility for electricity and gas market regulation is a matter for the CER, which is an independent statutory body. CER also carries out statutory market monitoring functions, has the responsibility to ensure that the market operates competitively for the benefit of the consumer, and accredits price comparison sites where energy consumers can assess prices and identify significant savings.
The competitive energy market results in choice for consumers and businesses in terms of suppliers, products and prices, exerting downward pressure on prices. As the wholesale electricity price is falling, this should be passed onto electricity customers and this will mitigate the proposed levy increase in the current period. In this regard I am pleased to see that some electricity suppliers have recently reduced their price offerings in the domestic sector. Domestic customers can also avail of discounts available, either by contacting their supplier directly or by using accredited websites to switch to discounted tariffs.
255. Deputy David Cullinane asked the Minister for Communications, Energy and Natural Resources the cost of ensuring that workers his Department recruited post-2011 are paid on the pre-2011 salary rate; and if he will make a statement on the matter. [16591/16]
View answerThe information requested is being compiled and will be forwarded to the Deputy as soon as possible. In relation to bodies under the aegis of my Department, this is an operational matter for each body. My Department will ask the relevant bodies to supply the information directly to the Deputy.
256. Deputy Peadar Tóibín asked the Minister for Communications, Energy and Natural Resources the properties his Department and agencies under its remit leased; the number they leased on upward-only rents and the number of the lessors who were involved with the National Asset Management Agency or with any of the State banks; and the details of each lease. [16596/16]
View answerMy Department does not own or lease any property. Its accommodation needs are provided for by the Office of Public Works.
The information sought by the Deputy regarding the agencies under the aegis of my Department is an operational matter for each Agency. I will request the relevant bodies to reply directly to the Deputy with the information requested in respect of their organisation.
