Vol. 644 No. 4
55 Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources the money allocated in budget 2008 to the greener homes scheme and to other conservation schemes for homes and businesses; the level of demand for the schemes in 2007; the level of demand he anticipates in 2008; and if he will make a statement on the matter. [35784/07]
The energy conservation capital grant-in-aid to Sustainable Energy Ireland, SEI, in 2008 is €63 million. Within that envelope, the allocation for the greener homes scheme in 2008 is €28 million. Some €35 million is being allocated across the range of energy efficiency and renewable energy programmes managed by Sustainable Energy Ireland, including €5 million for the new home energy savings scheme and €2 million for the energy efficiency advisory programme for small and medium enterprises.
I am advised by SEI that analysis is under way on the level of demand across all programmes and schemes in 2007. In the case of the greener homes scheme, more than 9,000 definitive grant offers were made in 2007 and total expenditure under the scheme this year will be €28.2 million.
As the Deputy is aware, demand under the greener homes scheme has been exponential and continues strongly with 1,900 applications received to date — under phase 2 of the scheme. I fully expect the demand for the programmes and services of SEI to continue to grow in 2008 and continue into the future.
We are back to an issue which caused controversy last year when we did not have sufficient levels of capital set aside for phase one of the demand-led greener homes scheme. At the time, I was extremely unhappy, as were others in Opposition, that to bail out Sustainable Energy Ireland and ensure the bills committed to the greener homes scheme would be paid the Minister needed to find money from other areas within his Department such as broadband schemes and a research budget.
At the time, the Opposition clearly stated it did not want this mistake to be made the following year. Here we see less money allocated for 2008 than was spent in 2007 for a scheme which continues to grow and is becoming more popular among house owners and home-makers according to Sustainable Energy Ireland.
Last year we got it wrong in a major way and had to reallocate approximately 40% extra to pay the bills for the greener homes scheme. It is still a demand-led scheme which does not have a cap. Is the Minister satisfied that next August we will not have to find money from other areas in the Department to bail out Sustainable Energy Ireland for a second time in what is a successful, attractive and sensible scheme for making houses more energy efficient? I am concerned that we have not allocated enough money. The allocation for 2008 represents a cut from 2007.
To clarify, the amount spent this year is approximately €28 and the amount allocated for next year is €28 million. One can hardly call this a cut.
No progress.
This scheme will continue to evolve. Deputy Coveney is correct to state it is a demand-led scheme. Because of the nature of demand-led schemes, it is difficult to forecast and be accurate on what will be the demand from the public. This is true not only with regard to the number of applications but also the number which feed through to contracts being signed and work being undertaken. Both of these variables varied and we had to secure additional funding for the scheme. I was happy to do so in the manner I did because it was orderly and feasible as my Department has unspent allocations which could be transferred.
Considering the overall picture for the SEI and the various schemes it has, if I recall correctly, the original budget allocation in 2007 was approximately €31 million. Next year, the allocation will be €63 million, which more than doubles the figure.
I am discussing the greener homes scheme which is the flagship.
One must take into account that the SEI has numerous schemes, all of which have significant benefits. It is appropriate for us——
There is not enough money.
When the funding is doubled from one year to the next——
The funding has not been doubled.
I have doubled the funding.
We have not doubled the funding.
The SEI's funding has doubled. When this can be done at a time when budgetary circumstances are tight it shows the importance the Government attaches to this area.
I intend to evolve the greener homes scheme in terms of introducing new technologies and, as we did this year, reducing grants where appropriate such as when schemes achieve their ambitions, including establishing a volume of business in new technology areas so economies of scale apply. It is not our job to continue forever and a day to grant aid particular technologies. It is our job to establish those market areas and move on to other areas which need to evolve.
As we move to implementing the much higher building standards we were able to introduce in Government——
Will the Minister answer the question?
——which have a requirement for renewable heating systems in new buildings it will allow us to further adapt the scheme to target it at existing rather than new houses.
Deputy Coveney may ask a short supplementary question.
I wish to correct the record. The facts are that the budget allocation under the heading of energy conservation grant-in-aid, which I understand includes Sustainable Energy Ireland's capital funding, will increase from €54 million last year to €63 million this year.
Deputy Coveney must ask a question.
Will the Minister accept figures from Sustainable Energy Ireland which inform me that next year it has an allocation of €26 million and not €28 million? Will the Minister accept he previously stated the greener homes scheme cost the State approximately €30 million and not €28 million in 2007? I am slow to accuse the Minister of massaging the figures to hide an effective cut in the greener homes scheme.
Deputy Coveney must ask a question.
However, this is what the figures tell us.
No cuts have been made but we have a continuation of the greener homes scheme in phase two which remains popular and will continue to draw down funds. It will continue to evolve——
Does the Minister state that the SEI has €28 million and not €26 million for next year?
——as market conditions apply. The greener homes scheme budget is €28 million. This scheme will continue to evolve and change——
It has €2 million more than it believes it has.
——as it is appropriate for us to manage various programmes.
I remind Deputies that they eat into their own time when they make long speeches.
56 Deputy Liz McManus asked the Minister for Communications, Energy and Natural Resources his views on the recent EU survey of enterprises with access to broadband which put Ireland close to the bottom of the table and behind the EU average; his further views on Ireland’s OECD rating at 22 out of 30; the timeframe in which he expects Ireland to have 100% broadband coverage; and if he will make a statement on the matter. [35813/07]
The EU statistics agency, EUROSTAT, published a report, "Internet usage by enterprises 2007" on 10 December. This showed Internet access by enterprises in Ireland at 94%, which is the EU average. In all, six member states were at 94%, ten were above average and ten were below average. The average rate for broadband connection was 77%. At 66%, Ireland was among 13 member states which were below average, one was average and 12 were above average. No data was available for France.
It is important that statistics such as these are seen in context. The reference period for these statistics was 2006. Since then, Ireland has experienced and continues to experience considerable growth in broadband. A recent report from the OECD shows that we have the strongest per capita subscriber growth in the OECD, with Ireland adding 6.6 subscribers per 100 inhabitants during the past year, almost double the OECD average of 3.65 per 100 inhabitants. More than 20 operators provide broadband services in Ireland over a range of platforms; DSL, cable, wireless, mobile and satellite.
ComReg's latest quarterly report published yesterday shows broadband take-up continues to grow strongly. In Quarter 3, broadband subscriptions grew by 8% to more than 700,000, which represents year-on-year growth of 61%. When mobile broadband is included, total broadband subscriptions stand at almost 800,000, this brings the total growth in broadband subscriptions over the quarter to 14.6%.
The number of mobile broadband subscribers in Q3 2007 stood at 88,400, almost double that at the end of Q2. Broadband penetration for Q3 2007 is over 16% compared to the EU average of 18.2%. When mobile is included, Ireland's penetration rate is 18.4%.
In the case of business broadband, the near-universal take-up of fast broadband services by bigger businesses is being followed by large scale SME take-up. ComReg's eBusiness survey showed that 79% of SMEs had broadband services as of July 2007, compared to 30% two years previously.
The widespread provision of broadband services continues to be a priority for Government.
Additional information not given on the floor of the House.
In that regard my Department has undertaken initiatives to address the gaps in broadband coverage. These include providing grant aid under the recently concluded group broadband scheme and investment in metropolitan area networks, MANs.
There are still some parts of the country where the private sector will be unable to justify the commercial provision of broadband services. In order to address this issue the procurement process for a national broadband scheme, NBS, is under way. The NBS will provide broadband services to areas that are unserved and will ensure that all reasonable requests for broadband in unserved areas are met.
The procurement process is being undertaken pursuant to the European Communities (Award of Public Authorities' Contracts) Regulations 2006 using a competitive dialogue procurement process.
The first phase of the procurement process, pre-qualification questionnaire, is now complete and four candidates have pre-qualified to enter the next phase of the procurement process. As my Department indicated on 2 September 2007, the four candidates are, in alphabetical order, BT Communications Ireland Limited Consortium, Eircom Limited, Hutchinson 3G Ireland Limited and IFA Motorola Consortium.
The Department has invited these remaining candidates to participate in the "competitive dialogue" phase of the procurement process and to present their proposed solutions to meet the Department's requirements for the delivery of broadband to the unserved areas of the country. It is anticipated that a preferred bidder will be selected and appointed in June 2008.
I thank the Minister for his reply. We must focus on the purpose of the question which relates to enterprises with ten or more employees. Although these are not major enterprises it is clear that broadband access remains a major issue. We lag behind and no amount of statistics will change this fact. In the most recent report, we were at 66%. At that time, the UK was at 78% and little Malta was at 89%.
I accept we have had an increase and it is proper and right because we started from such a low base. However, as we move other countries move further ahead and this affects our competitiveness. What will the Minister do at a practical level to deal with the complaints in the IT sector in particular about the issues of quality and cost of low penetration? It has been described as a joke. People have stated they are embarrassed about the relationship between broadband and business in Ireland.
When will the needs of teleworkers in rural areas be met? I do not expect the Minister to know where Preban is in south Wicklow but I want him to know that 25 householders in the parish need broadband. Some of them could stay at home and work much more productively if they had broadband, rather than being stuck in traffic jams trying to get to work in Dublin, but they have no means of accessing a broadband service. Despite being part of Enterprise Ireland, they are not being catered for.
I accept that Ireland has lagged behind other countries, primarily as a result of an initial lack of investment in our incumbent network and a lack of competition between cable operators and the incumbent. Competition has been the main driver of competition in other countries and is the reason they are ahead of us. We must also acknowledge that with subscriber growth here twice the OECD average and at the top of the range, Ireland is catching up. This is not sufficient and we must move beyond catching up and start leading. To do this, we must examine developments in successful countries such as Britain, the Netherlands and states of a similar size to Ireland where competitive markets have been the main drivers for broadband bandwidth increases and price reductions, the two key developments required here. Once Ireland has attained universal coverage, the key issues will be the speed and cost of broadband services. We must continue to increase broadband penetration and speeds and reduce prices.
On the secondary issue of rural and isolated areas, to take the example of County Wicklow, the Department is working on a competitive tendering process to provide universal coverage and ensure no area is left behind. Four applicants have applied under the scheme. The complicated and detailed competitive tendering process will be completed in the second quarter of 2008 and contracts will be ready by June. This will be a significant development in terms of further competition, particularly in the areas in question.
To return to my main point, the reason the figures on broadband uptake in Ireland are encouraging is that we are seeing rapid uptake of mobile broadband services. This may be for geographical reasons as it is more difficult in Ireland to get broadband into very dense developments when compared to other countries. Mobile penetration combined with much greater development of broadband by the cable operator and other wireless and satellite operators is leading to a more competitive market. We must push this development in order that companies compete effectively to deliver better quality services at a lower price.
Contracts will not be ready until June. That is a change.
57 Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources the money allocated in budget 2008 to the national broadband scheme, MANs phase II, and other information and communications technology schemes his Department may have identified; and if he will make a statement on the matter. [35785/07]
The provision of broadband services is, in the first instance, a matter for the private sector. Broadband service providers operate in a fully liberalised market, regulated by the independent Commission for Communications Regulation, ComReg. The widespread provision of broadband services continues to be a priority for the Government. In that regard, my Department has undertaken initiatives to address the gaps in broadband coverage. These include investment in metropolitan area networks, MANs, the concluded group broadband scheme, GBS, and the recently announced national broadband scheme, NBS.
An indicative €435 million of Exchequer funds has been provided for the communications and broadband programme in the national development plan. To date, €35 million has been spent on broadband initiatives during 2007, including phase II of the metropolitan area networks programme and national broadband scheme. It is anticipated that the full €435 million will be fully utilised over the lifetime of the NDP. It is not possible at this stage to give a detailed breakdown of the approximately €400 million that remains to be allocated over the period of the plan. Some of this allocation will be expended in the NBS and commitments under phase II of the MANs programme.
In the recent 2008 budget, provision was made of €53.634 million in my Department's Vote for the information and communications technology programme. This allocation will be used in 2008 to fund MANs and NBS projects, as well as other information and communications technology programme initiatives. As the NBS is going through a tendering process, I am not in a position at this time to give details of the breakdown of funding.
A value for money and policy review of phase I of the MANs programme will be completed and published in January 2008. In the circumstances, I consider it prudent that further contracts for the construction of new MANs networks should not be signed until I have had an opportunity to consider and assess the implications of the value for money report and the outcome of the consultation on the next generation broadband policy paper.
I welcome the increase in funding in this area, which I hope reflects a realisation that we need to front-load money allocated in the national development plan for telecommunication infrastructure. When will the report on the next generation network consultation process be available? Why is the Minister unable to provide additional details on how the budget for next year will be split behind MANs, the national broadband strategy and what he describes as "other information and communications technology programme initiatives"? Surely when he makes a pitch for money from the Department of Finance, he must indicate what he plans to do with it. Why can he not provide more detail?
I assume the Minister is aware that the broadband challenge for Ireland is not only to achieve broadband access for the 15% or 20% of the country that does not have it but also to achieve next generation network capacity, namely, higher speeds. While we try to catch up in terms of first generation broadband connectivity, we are falling further behind in terms of speeds. On average, the advertised download speed here is three megabits, the third worst figure of 35 countries in the OECD. The average advertised speed in France is 44 megabits, in Sweden it is 21 megabits, in Italy it is 13 megabits and in the United Kingdom it is ten megabits. What specific measures does the Minister have in mind to front-load capital investment to try to kickstart the provision of high speed next generation networks by assisting the private sector using the capital available under the national development plan and next year's budget?
The report on the next generation network will be completed in early January when it will be sent to a national advisory panel I will establish to obtain an outside opinion. As this is a complicated area, it is good to examine international experience and precedents. The report will be published after the panel's work is completed. This will be a short process which will last for weeks rather than months.
The Deputy asked the reason I will not provide details on expenditure. The Department is engaged in a competitive tendering process in which it is seeking tenders from corporations for a national broadband scheme in which they will provide services with State support. If I was to give a breakdown of the scheme, it would give an indication, from the Government side, as to the possible financial picture. It would be highly inappropriate in a competitive tendering process to flag what the Department would consider a budget allocation. For this reason, I will not break down the figure further.
The Deputy is correct that the debate must be about how, in a fast changing world in which broadband penetration is increasing dramatically and technology and bandwidth are increasing, we move to much higher bandwidth speeds. It is encouraging that the incumbent, Eircom, is rolling out, in a large number of exchanges, a new 12 megabit DSL connection facility. The mobile operators, which have experienced remarkable growth in the past two quarters, expect to double the bandwidth they have available on their mobile broadband services. We will need these increases in speed next year and in the years thereafter to ensure supply is always ahead of demand, rather than lagging behind, as has been the case, and new services, whether video streaming, data upload or home-working, can thrive with much faster broadband speeds. This will be achieved through policy initiatives such as State investment in MANs and support for other applications but primarily by fostering competition between the companies to determine which of them can provide the best service at the best price.
58 Deputy Liz McManus asked the Minister for Communications, Energy and Natural Resources his views, in view of a target of 3% reduction of carbon emissions set by the Government on Sustainable Energy Ireland’s recent publication Energy in Ireland 1990 to 2006 which showed that energy related CO2 emissions increased by 0.4% in 2006; his further views on figures showing that energy related CO2 emissions in 2006 were 54% higher than 1990 levels; the energy related targets for carbon emission reductions for 2008; the way he will reach that target; and if he will make a statement on the matter. [35814/07]
Overall energy related CO2 emissions, including domestic and international aviation, increased by 0.4% in 2006, resulting from a 0.9% increase in overall energy demand while the economy grew by 5.7%. This compares with a 5.1% increase in energy related emissions in 2005 and a 4.2% increase in demand. On a Kyoto Protocol basis, excluding international aviation, a reduction in energy related CO2 emissions of 0.4% was recorded in 2006.
All sectors with the exception of transport experienced reductions in direct energy related CO2 emissions in 2006. Industry experienced a 0.6% increase, residential sector experienced a 1.2% reduction, services experienced an 8.8% reduction and transport energy related emissions grew by 7.1% in 2006. Overall, electricity generation experienced a 1.8% reduction in CO2 emissions, notwithstanding a 6.3% growth in electricity demand. In total, renewable energy contribution to total energy demand increased by 15% in 2006.
Electricity generated from wind grew by 46%, bringing the contribution of renewables to gross electricity consumption to 8.6% at the end of 2006, up from 6.8% in 2005, an increase of 32% in absolute terms. The current estimate, provisional, of renewable contribution to gross electricity consumption is just over 10%. Had transport energy not experienced any growth in 2006, energy-related CO2 emissions would have reduced by 2.8%. It is the case that energy related CO2 emissions increased by 54% between 1990 and 2006. In that context there is no doubt that the transport sector presents the greatest challenge in reducing energy related greenhouse gas emissions.
My colleague, the Minister for Transport, is preparing a sustainable travel and transport action plan which I understand he intends to publish for consultation shortly. Furthermore, my colleague, the Minister for the Environment, Heritage and Local Government, announced a range of measures in the carbon budget creating structural change in relation to VRT and motor taxation to provide incentives for more sustainable choices in the car fleet in the medium to long term.
My Department intends introducing a variety of other measures to promote energy efficiency and renewables to help us meet the Government's targeted 3% annual reduction in CO2 emissions.
I appreciate the information the Minister has given but it is historical. What I am trying to assess is the difference he will make in terms of 2008. The Green Party went into Government to make a difference. The Minister has listed what has happened until now but he does not tell us what will be different from now on. When I put the question to him this morning I was surprised he did not have an answer. What I want to know is the target for the Minister's area of responsibility for 2008 and how he intends to achieve it?
I wish to make a seasonal point. Why, during the Minister's term of office, has Eirgrid informed us that Christmas lighting is increasing electricity usage by 2%, which is a very significant amount. We have seen the excess amount of lighting around. At a time when that is happening the Government, through the Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív, handed out over €100,000 for Christmas lighting in Irish.
A question, please, Deputy.
How can the Minister let this happen?
I am grateful to the Deputy for informing me of the support schemes for Christmas lighting in Irish. Eirgrid has set out the increases in electricity that arise at this time of year from Christmas lighting. We will see many opportunities and technological developments which will provide certain solutions. For example, with LED lighting we can achieve light with a much lower energy reduction. I commend my colleague, the Minister for the Environment, Heritage and Local Government, who, in the budget, agreed to a complete phase out of energy inefficient light bulbs by 1 January 2009, which will save in the order of 700,000 tonnes of emissions each year and €185 million in reduced electricity bills for consumers. That is an example of a very practical technological measure which achieves a significant gain without a significant cost to citizens.
In the meantime will the Minister ensure, through Cabinet, that this kind of expenditure is properly proofed in terms of climate change? We can have all the fine words in the world but the reality is that we have this type of venture, which is largely spent in that Minister's constituency, promoting Christmas lighting, which is all very nice — I am being Scrooge here — but it does not tally with the views of the Minister on what needs to be done. It is significant. That there have been only two ministerial meetings of the sub-committee of the Cabinet is evidence of what happens when it does not meet on a regular basis to ensure the Government is performing and not just talking.
I assure the Deputy that the meetings that occur outside the Cabinet in preparation for Cabinet sub-committee meetings are ongoing. The delivery of the carbon budget, the first one in any country in the world, took an extensive amount of preparation but we are only at the start. It will require cross-Government, cross-Department involvement in a common goal, which is to reduce CO2 emissions by 3% per annum across all areas and particularly in areas where long-term decisions have to be taken in recognition of the long-term challenge in this regard.
59 Deputy Michael D’Arcy asked the Minister for Communications, Energy and Natural Resources the reason the towns of Gorey, Enniscorthy and New Ross were not included in MANs phase two; and if he will make a statement on the matter. [35786/07]
In March 2002 the Government gave approval for the design and construction of fibre optic metropolitan area networks, MANs, using Government and ERDF funding under the National Development Plan 2000-2006. Phase One of this programme has delivered fibre optic networks to 27 towns and cities throughout the country, which were built on time and under budget. ENet the management services entity, is currently managing those completed networks.
In planning the second phase of the MANs programme, a review of the availability of DSL broadband in the regions showed that over 90 towns with a population of 1,500 and above that did not have a broadband service by the private sector, and these towns were targeted for the provision of MANs under phase two.
The towns of Gorey, Enniscorthy and New Ross had DSL available and were not deemed to be the most needful for MANs infrastructure at that time. These towns are among the towns listed for phase three of the MANs project.
My Department is preparing a draft policy paper on next generation broadband networks which will consider the optimum role for Government in facilitating the roll-out of high speed broadband networks. I expect to publish the draft policy paper on next generation broadband networks for consultation early in the new year.
MANs that are under construction will proceed as planned. There are 66 phase two MANs that are either recently completed or under construction.
The Minister knows better than most that DSL is old hat at this stage in regard to broadband connectivity. In County Wexford phase one was disappointing in that only one town was connected. Kingscourt, with a population of 1,700; Kiltimagh with a population of 1,000 and Manorhamilton were connected in phase one. Gorey, Enniscorthy and New Ross, out of 94 towns, with populations closer to 10,000, were not connected. There is a competitiveness issue here that is very important. These are fast expanding towns that will not be considered for high-end jobs because they have a very much inferior version of broadband connectivity. The Minister is talking about phase three for the next generation broadband networks. Towns such as Gorey, Enniscorthy and New Ross are being left behind.
An employer in County Wexford with an employment base of more than 250 people has no broadband connectivity but does not wish to be named because of embarrassment. I ask the Minister if it would be possible, given that we are losing jobs and competitiveness, to consider an assessment for major employers, with 200 to 250 employees or more, who have zero broadband connectivity? It is a hugely important matter. The Minister should know better than most that we cannot lose jobs because of the lack of broadband.
To say DSL technology is old hat may not be completely accurate. There are evolutions in the DSL technology, the latest version being VDSL, which is a much higher speed, something like the 12 megabyte I mentioned earlier. This is an ongoing variation in terms of what is possible and there will be further variations as we move to next generation broadband networks where fibre optic cables are brought closer to either the exchange or to the cabinet on the street. That will mean there are towns which have exchanges enabled in that way that they could get high speed connections which may well involve VDSL or another variation of it.
The issue about the economy, competitiveness and the availability of broadband is crucial. Some 49% of our exports are in a digital form. It is crucial that we have high capacity connections. The experience on the ground is that larger employers are able to get fibre optic cables to the companies because they tend to have large-volume users and their experience compared to other international countries is reasonably good. We have strong global processing and a competitive market where operators like BT, Eircom and a range of other companies are looking to service that kind of higher-end commercial market.
The more crucial, difficult and important aspect for us is how we bring this to smaller enterprises, particularly those enterprises which are outside urban areas, so competition between a cable operator and an incumbent will see a much greater penetration of business being achieved reasonably quickly. These are the areas where we have to decide whether to intervene, be it through the national broadband scheme, the development of a backhaul network to try to assist operators to gain access to this area or the development of MANs and the review of that to find whether it is more appropriate to install it in larger rather than smaller towns.
The State has shown itself willing and able to make such investments, going back to the original investment in Global Crossing and moving to this investment in MANs. It is an ongoing and changing process because the technology and the competitive market are changing. We must take this into account and make sure no businesses or communities are left behind.
One issue that needs to be addressed is the cost of connection to MANs. At present, it can cost tens of thousands of euro to connect to MANs, which is prohibitive given that the additional running costs are also very high. E-Net got the contract in 2004 for 15 years. Will the Minister review the cost for new connectors to take up usage in MANs?
The Deputy's point is a good one. This is why a value-for-money report is ongoing in my Department to assess the difficulties as we roll out MANs in terms of backhaul connection but also in terms of what is known as the drop connection to get from the fibre optic ring to the business. The Deputy is correct that once a roadway must be dug up to install such a connection, the costs can be of the order of €10,000. We must examine this to find how we can be more flexible and help that service to the door.
One encouraging indicator is that E-Net in its operations has seen a 59% increase in turnover from 2006 to April 2007 from a low initial base. There is a certain uptake, although that is not to suggest there are not difficulties or that we do not need to examine this to make sure it works effectively.
