Vol. 673 No. 4
1 Deputy Phil Hogan asked the Minister for the Environment, Heritage and Local Government if he will bring forward new proposals to meet Kyoto climate change targets here; the number of carbon credits and the estimated cost of buying same during the Kyoto timeframe; and if he will make a statement on the matter. [4168/09]
Since the publication of the national climate change strategy in 2007, the relevant Departments have been working on the development of further measures to reduce Ireland's greenhouse gas emissions. This work is overseen by the Cabinet committee on climate change and energy security, which is chaired by the Taoiseach. I have been reporting progress to the Oireachtas on an annual basis whenever I present the carbon budget to the House.
The focus of the 2007 document was very much on Kyoto compliance over the 2008-12 period. While the measures now being developed will support this, their longer-term impact is of even more importance. Significant structural change is required across all sectors of our economy if we are to meet the much more demanding targets to which we are now committing ourselves. Under the recent EU climate and energy package, Ireland has taken on a target of a 20% reduction in emissions between 2005 and 2020, and this target will increase further when a new global agreement on climate change is reached, hopefully in Copenhagen next December.
The last carbon budget showed a requirement for Government purchases of up to 4.6 million allowances per year over the 2008-12 period. I noted at the time that this was based on EPA emission projections which assumed economic growth rates similar to those published in the ESRI's medium-term review in May 2008, and that it was already apparent that these forecasts were now over-optimistic. Since then, in light of the changed economic outlook, the EPA, with the assistance of the ESRI and other relevant agencies, is revising its emission projections. While this work is not yet complete, I understand that the new projection will be significantly reduced.
The global economic downturn is already leading to a fall in the market price of carbon credits. While the Government's projections of the cost of the purchasing requirement had assumed an average unit price of €15, markets are currently operating at closer to €11. Overall, the cost to the Government will be much less than previously forecast, due to the fall in both the volume and unit price of carbon credits.
I must emphasise that the use of carbon credits must be supplementary to emission reductions and that we must not, under any circumstances, allow the option to purchase credits to deflect from the fundamental objective of taking the necessary actions towards a low-carbon trajectory in the longer term.
The Minister has indicated that the recession and the contraction of the economy are what he is depending on in order to meet our Kyoto targets——
I did not say that.
——and that there will, as he rightly pointed out, be a serious change from the ESRI's forecast. There is an estimated contraction of 8% or 9% in the economy in 2009. Nevertheless, we must still do certain things in order to ensure that we achieve our objectives. When will work begin on a new national climate change strategy? Will the Minister indicate, notwithstanding the economic situation, what the likely, if any, purchase of credits will be over the next few years until 2012?
I would like to correct the misleading statement made by the Deputy that we are relying on the recession. I said no such thing. What we are relying on is Government action. We have said over and over again that the climate change strategy will be implemented and have taken the necessary steps to achieve that, through the creation of the Cabinet climate change committee and the Oireachtas committee which is chaired by a member of the Fine Gael Party. These will oversee the changes we are making and ensure that we make the necessary changes. I hope Members will support those changes, some of which may be perceived to be unpalatable.
Some fiscal instruments are required and the taxation commission is looking at putting a price on carbon. This is necessary, as are the other changes we have introduced on building regulations and the changes that allow people opt for low-emission vehicles. Furthermore, there will be new changes relating to more sustainable methods of travel. The sustainable transport action plan was launched today.
These combined changes will mean that we will reduce our emissions. The Deputy will be aware that we have, for the first time, reduced our emissions by approximately 1%. I am confident that these combined measures will mean we will comply with our targets for the Kyoto period, 2008 to 2012. The much more onerous target comes beyond that, the post-Kyoto period. That is the period when it will be much more difficult to comply with our targets.
I am anxious that the Minister would pursue direct Government action. However, the action taken to date does not inspire confidence, with only 700,000 tonnes of a reduction out of a 7 million target. The Minister's initiative on light bulbs seems to have gone from the radar and has been brought into the context of an EU strategy.
The Minister mentioned transport. How does he reconcile what he has just said about a sustainable transport plan with the massive number of buses to be taken off the road in Dublin by Dublin Bus? This is happening in a city that has few alternative options for people other than car use. If we are anxious to obtain a reduction in car transport, the policy pursued by the Government of removing buses out of circulation will result in more people driving their cars rather than less.
Once again, I must correct the misleading comments put forward by the Deputy. With regard to the European Union, it has congratulated Ireland on leading the way on energy efficient light bulbs.
What happened to the 1 January target?
The fact is we have led the way and are supported by Mr. Verheugen and Greenpeace. However, I do not want to go over that again or to boast.
With regard to Fine Gael's transport policy——
I asked about the Minister's policy.
Our policy is working, while Fine Gael's is about building more roads. Fine Gael is at sixes and sevens. On the one hand, the Deputy's colleague, Deputy O'Dowd, says we should double the amount of roads——
On a point of order——
I call Deputy Lynch on a point of order.
This is time for questions to the Minister, not for questions from the Minister. The Minister should follow Standing Orders and respond to the questions that are being put rather than engage in a slagging match.
That is very interesting, but it is not a point of order. I call on the Minister to conclude.
I thank the Chair for pointing out that is not a point of order. I must be in a position to correct statements that are made by Opposition Deputies.
Are the buses off the road or not?
Please allow the Minister to conclude.
What is required in Dublin Bus is radical reform, and that is what we have put forward. We are introducing measures to achieve that. Fine Gael, on the other hand, just wants to privatise transport and to build more roads. It wants to double the amount of roads being built. That is Fine Gael policy.
What is the Minister's policy?
2 Deputy Ciarán Lynch asked the Minister for the Environment, Heritage and Local Government the date for the introduction of the cap on local election spending; the spending limits and the framework which will be introduced to monitor spending; and if he will make a statement on the matter. [3939/09]
I intend to bring forward proposals in the near future for legislative change to allow for the introduction of spending limits at local elections. It is my intention to have the limits in place for the local elections to be held this year. The programme for Government contains a commitment to examine spending limits at local elections as part of the Green Paper on local government. The Green Paper, published in April 2008, outlined two possible approaches, a fixed expenditure ceiling of a set amount per candidate or limits linked to a proportion of Dáil expenditure.
The purpose of introducing spending limits is to create as level a playing field as possible to ensure that candidates of modest means are not put at a disadvantage in contesting an election. It will also bring local elections in line with other electoral codes where spending limits already apply.
In October 2008, I consulted the Joint Committee on the Environment, Heritage and Local Government on the issue of spending limits. A policy research document prepared on behalf of the committee and presented at that meeting offered useful practical guidance. There are a number of complexities that need to be considered and I discussed these with members of the committee.
The consultative committee on local government reform, which was involved in the drafting process for the Green Paper on Local Government also considered the issue of expenditure limits. This committee included representatives from all the main local government associations and representative bodies including the Association of County and City Councils, the Association of Municipal Authorities in Ireland, the County and City Managers Association and the Local Authority Members Association.
Under the Local Elections (Disclosure of Donations and Expenditure) Act 1999, all local election candidates are currently required to submit a declaration of campaign expenditure, and the source of the funds to meet that expenditure. I believe that these provisions should be built upon, and that candidates should be required to comply with spending limits.
However, in setting the limits, a balance has to be struck. The limits have to be both realistic and reasonable. If they were set at too low a level, they might unduly hinder campaigning, particularly by new candidates. Were the limits too high, they would defeat the objective of discouraging excessive spending.
Given their different administrative responsibilities, there may be a case for setting different limits for county and city councils on the one hand, and borough and town councils on the other hand. This is something that is being considered.
Preparatory work is now at an advanced stage, and I expect to publish a Bill shortly to introduce spending limits for candidates at local elections.
I thank the Minister for his response. It is exactly the same response we received on 7 October 2008 when the Minister briefed the committee. A number of questions must be asked. Has the Minister brought this matter to Cabinet? In correspondence from the Taoiseach to the leader of my party in December there was discussion of complexities. There are no complexities in this. Local candidates must furnish financial information on their campaigns. What they need is a limit to be placed upon it. If this creates difficulties in terms of administration it also creates many benefits and a level playing field. It is an important factor in safeguarding against corruption. The Minister is on record, and I have stated in this Chamber and in committee, that there is a direct correlation between election spending and election outcome.
The Minister has not delivered on this issue. He has given us the same response he gave to the committee on 7 October. There are 16 weeks to go to the next local elections, which is just over 100 days. When will the Minister bring forward this legislation? The Minister mentioned two approaches. There are several approaches. Which one will the Minister choose?
I will call on the Deputy again.
It is unsatisfactory that the Minister is still prevaricating on this issue.
On the one hand Deputy Lynch states there are issues which need to be examined and, on the other, that there are no complexities. There are complexities and there is no question about it. If one considers the variation in population, and this will be based on population, the electoral areas range from a low of 6,470 to a high of 51,803. This is a huge variation. How does one allocate spending on this basis? This is what we must try to do.
In my reply, I stated there are issues with regard to some of the borough councils and these must be teased out. Next week, I hope to be in a position to announce this. Given that Deputy Lynch has highlighted the difficulties, stated that people have advantages and agreed with me that this needs to be done I hope he will welcome my initiative. I am sure he will find a way to criticise it in some shape or form.
The limit for a three seat Dáil constituency at present is €30,150. The Green Paper recommends this is halved to €15,000. We must examine this and consider whether this is the way to go. My thinking is that it is and I hope that next week Deputy Lynch will be out on the plinth welcoming this.
I did not intend to ask a supplementary question but as the Minister did not answer a number of my questions I will restate them. Yes, there are complexities but they are not unknown complexities. The complexities are related to population, various limits and urban and rural areas. I have discussed these with the Minister at committee meetings. Has the Minister brought the matter to Cabinet? Will next week's announcement give us a specific date? Candidates in the field need to know the limitations of their expenditure. I welcome the indication this afternoon that the Minister is beginning to move on this matter at last. However, the vast majority of the Minister's response is a repetition of what we heard on 7 October.
I assure the Deputy that candidates will have clarity. Deputy Lynch must remember that I am a leader of a party and I have people running in the local elections also and they are as anxious as him to have the details. They will have those details next week.
Has it been brought to Cabinet?
These matters have been discussed in detail, and as I stated because they are complex issues they must be teased out. However, I will be in a position next week to make a firm announcement.
3 Deputy Phil Hogan asked the Minister for the Environment, Heritage and Local Government if he expects to make changes to the local government estimates arising out of the discussions with the social partners; and if he will make a statement on the matter. [4169/09]
The Government decision to introduce public sector pension-related measures announced by the Taoiseach in the House on Tuesday will apply to all public sector employees, including those employed by local authorities.
While there will be a saving in respect of local authority staff, there will be a neutral impact on local authority finances as there will be a corresponding reduction in the Exchequer contribution to the local government fund which supports local government expenditure.
Will the Minister clearly indicate what will be the reduction in the local government fund? I am sure he knows the figure. Many staff will be involved. What are the overall numbers? What is the average pension contribution levy required from these staff?
For 2007, the total amount paid by local authorities on salaries and wages amounted to €1.7 billion or 35% of their total expenditure. More than €1.5 billion is projected to be available to the local government fund in 2009. The general purpose grants are the contributions from my Department to meet the gap between the cost of providing a reasonable level of day to day services and the income they obtain from other sources.
General funding grants to local authorities have increased quite dramatically in recent years. The grants provided for 2009 are approximately 190% above the corresponding grants provided in 1997.
The Minister is going back a long way.
What is the difference between this year and last year?
What about 1924?
We are broadening the base.
I asked the Minister and he is not answering.
I just answered it.
What is the cut in the local government fund?
What about last year?
We are broadening the base and it is expected that the new pension levy on local authority staff will yield an amount of €80 million per annum.
The cut is €80 million.
This will be realised by the Exchequer through a reduction of this amount in the Exchequer contribution to the local government fund. Grants to local authorities for 2009 will be reduced by an equivalent amount. That is the answer.
I have another question. Will the Minister give an absolute guarantee that there will be no cuts in current or capital funding in 2009 other than those relating to the pension income levy?
I can go better than that.
Good man.
This is what I tried to state a moment ago. The broadening of the base and the introduction of the levy on second homes will provide extra money to local authorities and this is what they are asking for. I want to ensure that not only can this money be collected locally but that it can be used locally.
I asked a different question.
Deputy Hogan asked whether local authorities are getting extra money.
No, I did not. I asked what was the cut. I asked the Minister a direct question.
I gave the Deputy an answer.
I will ask the second part of the question again. Will the Minister give an absolute assurance that there will be no cut in the capital or current programme, whether that is in housing in the Department of the Minister of State, Deputy Finneran, that the estimates given for 2009 are sacrosanct and that there will be no cut in capital or current expenditure in any programmes in 2009 other than the €80 million discussed with regard to the local government fund arising from the pension contribution levy?
The Deputy knows only too well that adjustments had to be made.
So there is.
Nothing in the current climate is sacrosanct. We have tried to ensure we invest in labour intensive activities.
So "yes" is the answer.
Allow the Minister to speak.
We need to ensure that water infrastructure, which has increased by 19% to €560 million——
The Minister will not cut that.
——will remain intact.
Good.
That is my intention.
What about housing?
We also discussed issues which are of interest to Deputy Hogan's area such as flood protection measures. The measures in question will remain intact.
What about housing?
4 Deputy Phil Hogan asked the Minister for the Environment, Heritage and Local Government his views on the collapsing recycling industry here and abroad; the action he has taken to identify new markets; the amount spent on storing recyclables since June 2008; the estimated cost of storage in 2009; and if he will make a statement on the matter. [4170/09]
I remain committed to building on the success of recycling in recent years despite the recent downturn in recyclable markets. I am glad to say there is now evidence of some market recovery, particularly for good-quality segregated material.
I raised the issue at the Environment Council in Brussels on 4 December 2008 and 12 member states supported my intervention. The European Commission has undertaken to carry out a review of the matter and to revert to us with options for action. Ireland also raised the issue at the December meeting of the EU Technical Committee on Packaging Waste. At our suggestion, a database of outlets for such material is being compiled by this committee.
On 31 October 2008, I announced the establishment of an action group to examine the matter and report within 2 weeks. Arising from the report I decided that a number of sub-groups should be established to drive action on issues such as quality and development of best practice, licensing and enforcement, and public infrastructure.
The storage of recyclables and any associated costs are a matter for the owners of the material. No funding has been provided by my Department for such storage, nor is it envisaged that it will do so in 2009.
I support the efforts made by the Minister in dealing with this important issue. The Irish have made huge strides in recycling waste and it would be a pity if this great progress were reversed because of the lack of market opportunities for our products abroad. Will the Minister indicate where the markets for recyclables are likely to develop? Such markets existed up to six months ago. Does the Minister believe a more balanced market will come into being and that opportunities will develop in countries such as China, to which many Irish recyclable goods were exported in the past?
What role has Repak in assisting companies to be prepaid and to resolve their current cashflow issues by making some money available up front to support them at this difficult time?
A number of meetings have taken place with Repak and a number of sub-groups are driving action in the recycling market. A meeting took place on 6 January last at which it emerged the material is now moving and that the amount of recyclables in storage has reduced. Repak estimated that approximately 8,000 to 10,000 tonnes are currently in temporary storage.
Markets have reopened and prices recovered slightly in December but there is a problem with plastics, due in large part to the low price of oil at present. It is strange to say we need to ensure we have higher oil prices but it is a fact because recyclable plastics will not move otherwise. There is no movement in the Chinese market in particular. The paper and cardboard markets, particularly for paper and cardboard of better quality, are recovering but there is still a problem with plastics. I am trying as best I can to ensure we have some movement in this area. We have invested an additional €2 million, which will bring the total fund up to €14 million in 2009. This is to assist the local authorities with the operational costs associated with their recycling facilities.
5 Deputy Terence Flanagan asked the Minister for the Environment, Heritage and Local Government if he will outline his new rental scheme in regard to the renting of homes in private estates for applicants on local authority waiting lists with details of the intended private estates to be used in this scheme and projected rental costs; and if he will make a statement on the matter. [4171/09]
Under the social housing investment programme, local authorities have traditionally met social housing needs mainly through the construction of housing in local authority estates. In recent years, the supply channels have been expanded to include an increased number of acquisitions, in particular under Part V agreements, and through arrangements with private landlords under the rental accommodation scheme. At the same time there has also been an expansion in the volume of accommodation provided by voluntary and co-operative housing bodies.
The new leasing initiative, under which authorities will procure properties on long-term leases of ten to 20 years, is designed to widen further the sources of supply and thereby help create a flexible range of delivery mechanisms for local authorities to meet demand for social housing. The use of leasing arrangements will allow for a substantial increase in the number of households that will have their housing needs met over what would otherwise be possible. It is expected that, through this measure, at least 2,000 additional homes will be procured this year.
Under the initiative it will be a matter for each local authority to determine what properties and locations are suitable for social housing. In putting forward leasing proposals, local authorities will be expected to have regard to the Department's guidelines for social housing, and all proposals must be consistent with the policy of creating sustainable communities. As with all social housing investment, local authorities will have to ensure on a case-by-case basis that value for money is achieved. Overall, however, I am satisfied this approach will facilitate the effective and efficient use of public finances. To this end, I have provided €20 million within this year's housing budget to meet leasing costs.
Some €20 million of taxpayers' money is to be used for renting 2,000 social housing units. Contracts of between ten and 20 years will be signed in this regard. The cost over a ten-year period will be €200 million and the cost for a 20-year period will be €400 million. This seems like a great deal of money. How will the scheme compare to the equity scheme? If it does not fit in with it, there will be dead money and no value for money. Will the Minister of State explain the background to the scheme and why it is proceeding at this stage? The Government recently introduced the home choice loan scheme. Will the Minister of State comment on how this is working?
The moneys available to local authorities and the voluntary groups in 2009 for housing programmes is close to €1 billion. The sum for the leasing programme amounts to €20 million. The home choice loan is provided through the local authority system. The equity loan will be dealt with under the Housing (Miscellaneous Provisions) Bill 2008 that will be before the Dáil in a couple of weeks.
The €20 million will deal with over 2,000 people on the housing list and I am happy that this represents good value for money. Everybody knows there are many vacant properties, perhaps 40,000. There are over 56,000 people listed on the local authority waiting lists that were submitted to me. I am responsible for addressing the needs of all those on the list and I have proposed this additional measure because I am satisfied on the question of value for money.
The people on social housing lists want permanent accommodation, not rented property. Will there be an equity element? We want to ensure the money is used to best effect. Those in local authority houses for ten to 20 years should have an option of ultimately purchasing them. The moneys they pay in rent should contribute towards their purchase.
Where will the 2,000 units be located? Is the scheme a pilot project and will additional units be made available over the years? Will the Minister of State be reviewing the housing strategy in view of the downturn?
It will not be possible to purchase a house under the scheme as it is a leasing scheme. It will not be any different from taking a local authority house because the landlord will be the local authority or the voluntary body. There is a great similarity and the differential rent will apply. One will not be entitled to purchase. However, as the Deputy will be aware, the Housing (Miscellaneous Provisions) Bill 2008 includes an incremental purchase scheme. Tenants who feel they are in a position to move towards a purchase will be able to do so under this scheme.
Where will the 2,000 units be located? Is it a pilot project?
That would be entirely a matter for the local authorities involved. They will have to get suitable properties in the location corresponding to the people on their lists, and they will also have to conform to Government guidelines on sustainable communities, namely, a mix of social and private housing. In some ways that may present an even better opportunity for a mix of housing.
Will it apply to second-hand homes also?
No, it applies to first-time lets.
The time for Priority Questions has expired.
