Michael Moynihan
Ceist:6. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources his plans to introduce the broadcasting charge; and if he will make a statement on the matter. [47261/14]
Other Questions
Television Licence Fee Collection
During the early stages of the formation of the present Government and subsequently, the then Minister indicated the Government's intention to bring in a broadcasting charge as opposed to the television licence. Great play was made about the distinction between the two and what would happen within it. Even during Question Time in this Chamber, this charge was suggested. What is the status of the broadcasting charge at present? What are the plans to introduce it and will the Minister of State make a statement on the matter?
I thank the Deputy for the question. The programme for Government commits to examining the role and collection of the television licence fee in light of existing and projected convergence of technologies and to transforming the television licence into a household-based public service broadcasting charge to be applied to all eligible households and applicable businesses, regardless of the device used to access content or services. The Minister is currently considering the charge in the context of funding of public service broadcasting, arising from the Broadcasting Authority of Ireland's five-year review of broadcasting, including a new system of determining the adequacy of funding for public service broadcasters and a revision of the current governance arrangements for advertising minutage. In conjunction with this, the Minister is considering possible amendments in respect of certain administrative and operational issues identified in the period since the Act came into effect. Until he has given his full consideration to these matters and has brought proposals in that regard to the Cabinet for decisions, there will be no change to the current arrangements.
Would it be correct to state the plans to bring in the broadcasting charge have been long-fingered or shelved at this stage? To judge from the Minister of State's response, that is the information I can take from it. As the Minister of State mentioned in his reply, the Minister has considered it in the context of the State broadcaster and the funding for it. Are the Minister and the Department fully content with the amount of money that is going into the State broadcaster from the television licence fee? Are they satisfied it is being put to good use by the State broadcaster? It is beyond me to understand it when independent television and radio programmers can produce programmes in some instances with one-tenth of the staff used by the national broadcaster to so do. I ask whether the Minister of State is content with the manner in which the money is being spent within RTE. Moreover, I ask him to indicate, in a simple "Yes" or "No" response, whether the planned broadcasting charge has been shelved.
In respect of the spend and the money that is not being collected, there is an evasion figure of anywhere between 15% and 16%. The total amount for the television licence is between €185 million and €190 million - I believe the latter is the correct figure. I am aware, for example, that some of this money goes to the likes of TG4 and is going back into the system. Moreover, from my work in my other portfolio, I am aware that this money is going to a place where it is being well spent. As for the Deputy's question where he sought a simple "Yes" or "No" answer, in the reply I gave, the Minister has stated categorically that there will be no change at present. My own thoughts in this regard concern the complexity of the subject. We are entering a whole new world with so much changing so quickly whereby people are not even using laptops for their daily news-feeds but are using their iPhones.
Given the complexity of usage, the Minister needs to take time to reflect. If we have learned anything as a Government in the past six to seven months, it is that it is important to take time and do things properly rather than rush them.
I take it that it has been postponed, for the want of better English.
We will be taking more time to work out a very complex system.
Wind Energy Generation
Thomas P. Broughan
Ceist:7. Deputy Thomas P. Broughan asked the Minister for Communications, Energy and Natural Resources the current status of negotiations between the Irish and British Governments regarding an intergovernmental agreement on the export of wind energy; and his views on whether a significant increase in generating electricity from wind energy here is financially and environmentally viable. [47113/14]
Will the Minister of State tell me where the intergovernmental negotiations relating to the export of offshore wind power now stand? There seems to be a feeling that these negotiations have collapsed and yet one company called Element Power still seems to be proceeding with developments on Codling Bank. Where are the negotiations at the moment?
I thank the Deputy for the question. Following the signing of a memorandum of understanding on energy co-operation with the UK Government in January 2013, a joint programme of work was undertaken to consider how Irish renewable energy resources, onshore and offshore, might be developed to the mutual benefit of both Ireland and the UK.
Economic analysis conducted on the Irish side clearly indicates that, under agreed policy and regulatory conditions, renewable energy trading could deliver significant economic benefits to Ireland and the UK, as well as being attractive to developers. However, given the economic, policy and regulatory complexities involved and some key decisions that the UK is not yet in a position to take, delivery by 2020 of renewable energy trading will not be possible.
In the context of a European internal energy market, it would appear that greater trade in energy between Britain and Ireland is likely in the post-2020 scenario. Domestically, onshore wind energy has been the most cost-efficient renewable electricity technology in the Irish market. Detailed analysis by the Sustainable Energy Authority of Ireland, SEAI, and EirGrid found that for 2011, wind generation lowered wholesale prices and offset the costs of the public service obligation levy and other associated costs related to renewable electricity. In addition, the recently published SEAI report on quantifying Ireland's fuel and CO2 emissions savings from renewable electricity in 2012 found that as a result of wind generation, almost 600 kilotonnes of oil equivalent of imported fossil fuels, valued at €180 million, were displaced with a consequent CO2 saving of 1.5 million tonnes valued at €11 million.
Analysis undertaken by the Department, the SEAI, EirGrid and the Commission for Energy Regulation assessed the costs and value of choosing the path towards 40% renewable electricity generation in 2020 compared with a scenario where renewable electricity remained at 2013 levels. This analysis informed a report which the Minister expects to receive and publish shortly.
Separately, the second phase of public consultation on the renewable electricity policy and development framework will commence shortly with the publication of a strategic environmental assessment and appropriate assessment scoping document. The renewable electricity policy and development framework is expected to be completed in 2015.
I thank the Minister of State for that reply. I think everyone in the House is broadly in favour of renewable energy. The Minister of State probably knows that just as in some areas with onshore wind energy, the cost-benefit analysis and the Government invigilation of the proposals for offshore wind energy, particularly on the Kish and Codling Banks, which are just off the coast of the Ceann Comhairle's constituency, and the massive Dublin Array which is to have 145 turbines, most of which are to be 160m high, was very remiss. The approvals were granted by a previous Minister under the Foreshore Act 1933. Where do we stand on that? I know the previous Minister published the offshore renewable energy development plan about a year ago but where do we stand in respect of the legislation? What is the situation with regard to marine spatial plans? In view of the Minister of State's reply, is it the case that a marine spatial plan could be prepared which will, in effect, lock down the Kish and Codling developments? Is it the case that the Minister of State seems to be saying that the outgoing - hopefully - Tory Government in the UK has abandoned any further major offshore proposals and interconnectors?
I was not involved but I was certainly watching very closely from the sidelines when I was Co-Chair of the British-Irish Parliamentary Assembly when the agreement went to a memorandum of understanding between the British and Irish Governments. There was momentum behind the movement towards a bilateral agreement between the UK and Ireland. That did not happen and that conversation is off until 2018 or post-2020.
Between now and then, we must be creative in our ways of doing things. We should not, as an island nation, rely solely on the UK as a potential partner. We should be looking at the likes of France and other creative options. How far advanced are universities in their research in terms of tidal energy and how does that affect getting foreshore licences? We need to look at the entire mix and I am certainly prepared to work with the Deputy on this issue. If we are going to be moving to a period of time where resources will become scarce, we need to be ahead of the posse and work closely with the European Commission on these matters.
When does the Minister of State expect the foreshore issue to come forward? Will he allow a debate if there is any proposal on marine spatial planning?
I do not have the answer but I will get the Minister, who has responsibility for this section, to get back to the Deputy on that question.
Post Office Network
Michael Moynihan
Ceist:8. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources his plans on publishing a strategy on sustaining the post office network; and if he will make a statement on the matter. [47260/14]
When it is planned to publish a strategy on sustaining the post office network in view of the changing society? What are the plans to produce a major innovative strategy in respect of maintaining the network as it now stands?
I thank the Deputy for his question. It is Government policy that An Post should remain a strong and viable company in a position to provide a high-quality postal service and maintain a nationwide customer-focused network of post offices in the community. The network stands well-positioned to become the front office provider of choice for Government and the financial services sector for both electronic transactions as well as the more traditional over-the-counter transactions.
It would be wrong to ignore the significant challenges facing the post office network in the current economic climate while also taking account of changes in technology and general retail behaviour. The future of the post office network will only be secured by its continuing to modernise and diversify in the provision of services that large numbers of people and business users want to use and that are sustainable in the long term.
Currently, there is a whole-of-Government review under the auspices of the Cabinet committee on social policy exploring the scope for providing additional public services and securing new lines of business through the post office network. The Minister has been engaged with both An Post and the Irish Postmasters Union concerning this review as and when appropriate.
In view of the continuing talk about the maintenance of the post office network, whether it is in urban or rural Ireland, there is considerable concern about it. Is it not time for us to take a radical approach to An Post? The reality is that the Department of Social Protection is encouraging people to go elsewhere rather than use An Post for social welfare. We need to change the memorandum of understanding with regard to An Post and to be very clear. We need something similar to that used with the ESB. We need to make a direction to An Post that it must maintain the post office network in every single community full stop and tell it that this is its legal obligation and modus operandi. I do not see the management or the board of An Post effectively or aggressively going after business in respect of driving licences, motor tax and a whole raft of things. We must change fundamentally how An Post is governed and produce a memorandum of understanding to direct it to maintain the network.
I completely agree. Prior to the local elections, a debate was raging throughout the country about post offices. The overarching message from people within the communities we both serve was that the post office was an important one-stop-shop where people could meet. This must be the ultimate focus of any debate with An Post as technology improves.
We spoke earlier about broadband and that we will try to bring either wireless, fibre or copper to every home but we do not want to create a society where people do everything from their sitting room. We must focus on the idea that people must still meet each other. There are many suggestions being made to the Department, for example, that post offices should be developed to have a sharper focus on banking. AIB has a contract in this respect and Aviva has a contract relating to insurance. The Revenue Commissioners includes An Post as one of the three avenues for people paying property tax, so we must be conscious of keeping people moving through the doors of post offices. Ultimately, it is a place for people to meet. Some people have even proposed that they could become types of Internet hubs as well for people to access online facilities. There are plenty of creative options, including that from the Deputy, and we will work from the Government policy of keeping those post offices.
There was a whole-of-government report allegedly commissioned for the post office network in the run-up to the local elections in March or April. That has been lost along the way, if it ever existed. Where is that now? Fundamentally, the Government and the State must direct An Post to change its modus operandi and governing rules as it does not seem to be aggressively going after the businesses which they should pursue. There is a multiplicity of businesses out there which could be adopted into the post office network if there was a direction to do so. We must seriously consider the issue. Did the whole-of-government report ever exist and will it ever come to pass? Was it a figment of somebody's imagination, like the broadband announcement prior to the local elections?
I submitted No. 11 but it makes sense for me to intervene now. During the discussion on the whole-of-government approach, I suggested that post offices and credit unions need to get much closer. We could work towards a people's bank in every post office. That may not be an appropriate issue for the Minister of State but the working group should consider legislation relevant to credit unions because, between that legislation and the role of the Central Bank, there is a risk of losing the ethos of credit unions. It seems we are trying to make small banks that will not be fit to compete with the commercial banks. Will the working group take this on board? Will it consider what I have asked about, which is the potential for post offices and credit unions to set up functioning local people's banks?
I will certainly ensure that proposal will feed into the business development group. The Deputy asked where is the process now, with the conversation having started in March or April. At an October meeting of the Cabinet committee on social policy, approval was conveyed for the establishment of a business development group to examine potential opportunities for both government and commercial sectors. The group will be chaired by an independent chairperson and will have representation from An Post. My colleague, the Minister of State with responsibility for rural affairs, Deputy Ann Phelan, will have significant input, along with the Department of Agriculture, Food and the Marine. The group will also have the capability to call on representatives from other Departments, and it will be asked to provide an interim report by the end of the first quarter of 2015, with a final report concluded by the second quarter of 2015.
Electricity Transmission Network
Mattie McGrath
Ceist:9. Deputy Mattie McGrath asked the Minister for Communications, Energy and Natural Resources the current status of EirGrid's Grid Link project; the way his Department has assessed EirGrid's claims relating to the threat to the national power supply if the Grid Link overhead pylon project does not get the go-ahead; and if he will make a statement on the matter. [47123/14]
There is a view put out strongly by EirGrid that the lights will be turned off in Dublin and elsewhere if it does not get the Grid Link project up and running. We know the difficulties it has in this respect and it is to launch a new public consultation. Has the Department done a proper assessment to verify the claims? When I served on the committee dealing with communications, I visited national grid facilities and there was never any indication that there would be a disruption in supply. That was at the height of the boom, when electricity usage was at a peak. Does the Department agree with the claims?
I thank the Deputy for his question. The Grid Link project will facilitate the integration of renewable energy onto the transmission system, reduce our reliance on imported fossil fuels and facilitate further electricity interconnection with Europe, providing a more secure electricity system. Despite the recent recession and drop in electricity demand, there remains a concern about the emerging risk to the security of supply in the south and east of the country, brought about largely by heavy power flows through the network. EirGrid estimates that, if left unchecked, the existing grid in the south and east of Ireland would not be sufficient to meet our future electricity needs, thus jeopardising electricity supply to the area. In meeting its obligations to ensure the system is secure, EirGrid proposed the Grid Link project to strengthen the grid and fulfil expected requirements in the south east.
EirGrid reviews all projects and strategies at regular intervals to take into account relevant developments, including economic conditions and electricity demand forecasts. In 2010, a review of Grid25 resulted in EirGrid reducing the estimated cost of the programme to €3.2 billion. EirGrid is currently undertaking a further review, with the outcome expected in the first quarter of 2015. In January 2014, an independent expert panel was established to examine the Grid West and Grid Link projects. EirGrid is undertaking analysis on fully undergrounded and overhead options for each of the projects in accordance with terms of reference set by the panel, which are available on the Department’s website.
In due course, the panel will provide an opinion to the Minister on the completeness, objectivity and comparability of the studies and reports and will oversee the publication by EirGrid of the two studies and reports prior to EirGrid proceeding to public consultation on the two projects. The panel expects to be in a position to provide an opinion to the Minister on the Grid West project in the first quarter of 2015. An opinion on the Grid Link project is expected in the third quarter of 2015.
I thank the Minister of State and wish him well in his work on the portfolio, as it is the first time I have asked questions of him. I do not accept his answer, however, as the cart was put before the horse. The reports should have been with the Minister long before EirGrid bulldozed ahead with its sham consultation, which it has accepted was not done properly or adequately. They are going back for a new round of public consultation and I heard a spokesperson on RTE radio during the week explaining how it would be different and have more local staff involved. EirGrid has been knocked back by the sheer scale of resistance to the proposal as it was not being fair, listening to people or engaging. It was going to go ahead with the project before any reports were done. Nobody who is opposed to the projects wants to have the lights turned off. We are aware of the need for energy but the scale of the project was way too big and overly ambitious. There was an attempt to bulldoze the issue and EirGrid has been set back in those tracks. I wish those reports were ready to be presented now.
There was public pressure and it is important that there is engagement and consultation in response to that pressure. The Minister's predecessor, Deputy Rabbitte, set up the panel to consider the options of overhead pylons versus underground lines. I encourage the Deputy to feed into the process, and his contribution today will I hope form part of that. It is a fairly tight timeframe but it is important that both options are considered.
The issue of overhead pylons and wind turbines is a difficult space. I agree that people realise that energy requirements are a practical reality and important, particularly if we are seeking to attract investment in new industry. I will take on board the Deputy's points.
I thank the Minister of State for his reply and for acknowledging that the Government had to listen to the people. We see that with Irish Water. The independence of the panel concerns some people. Is it wholly independent of EirGrid and the other bodies? There is also a concern about the new chairperson of EirGrid, who spent so much time in An Bord Pleanála. These things do not sit well with the public. The panel must be truly independent. This must be clear-cut. There must be no fuzziness or no spin.
Having found out who exactly is on the panel, I would be confident of its composition in terms of independence. Obviously, it has terms of reference. The panel is chaired by Mrs. Justice Catherine McGuinness and includes Professor John FitzGerald; the economist, Mr. Colm McCarthy; engineering professor, Keith Bell, from the University of Strathclyde; and Dr. Karen Foley, head of the school of landscape architecture in UCD. I am confident that we have an independent group and I hope there will be a comprehensive examination of all the concerns in the first report in quarter one of 2015.
National Broadband Plan Implementation
Gabrielle McFadden
Ceist:10. Deputy Gabrielle McFadden asked the Minister for Communications, Energy and Natural Resources the person that will be tasked with costing the proposals for the State-led intervention in the national broadband plan intervention areas identified during the mapping process; and if he will make a statement on the matter. [47112/14]
Gabrielle McFadden
Ceist:13. Deputy Gabrielle McFadden asked the Minister for Communications, Energy and Natural Resources the criteria that will be used to cost the proposals for the State-led intervention proposed in the national broadband plan; the way the plan will be funded; if the areas with the poorest coverage will be prioritised; and if he will make a statement on the matter. [47111/14]
If it is okay with the Minister of State, I propose that we take Questions Nos. 10 and 13 together because they are similar. Question No. 13 is the one I really want to ask. It is to ask the Minister of State what criteria will be used to cost the proposals for the State-led intervention proposed in the national broadband plan. How will the plan be funded and will the areas with the poorest coverage be prioritised?
I thank the Deputy for the questions. Is it okay with the Ceann Comhairle if we take the two questions together?
Yes, but we only have a few minutes.
I will respond to the first question but will keep the other question in the back of my mind.
The national broadband plan, NBP, aims to ensure that every citizen and business, regardless of location, has access to a high quality, high speed broadband service. This will be achieved through a combination of commercial investments and a State-led intervention in areas where commercial services will not be provided.
On 24 November last, the Minister, Deputy White, launched a public consultation on the national high speed coverage map 2016. This allows all members of the public, whether business or residential, to see whether their premises or home is included in the Government’s proposed intervention. It also provides detailed information on a county-by-county basis as to which villages and townlands are to be included.
My Department is responsible for the calculation of the costs associated with the Government's intervention under the plan. This is an important part of the detailed work that is being undertaken to finalise the detailed intervention strategy. Ultimately, however, the outcome of the tender process will determine the final cost of the intervention.
Detailed technical, legal, regulatory, financial and economic evaluations are required to ensure that the tender will be designed in such a way that maximises efficiencies and keeps the cost to taxpayers as low as possible. Given the strong dynamic that currently exists in the Irish broadband market we can expect a very competitive procurement process.
The next steps in this process will see a further public consultation on the detailed intervention strategy in mid-2015. A detailed procurement process will be undertaken in order to select a potential bidder or bidders towards the end of 2015 and it is expected that the physical build of this network will commence from 2016.
This complex and ambitious project is a key priority for Government. It aims to conclusively address current connectivity challenges in Ireland and no doubt in Longford-Westmeath.
I thank the Minister of State. The national broadband plan to deliver high speed broadband to every corner of the country is very welcome. However, like all ambitious plans, it comes at a price. Longford-Westmeath is my priority. The previous Minister, Deputy Rabbitte, rightly said that an ambitious programme to provide high quality, reliable and high speed broadband is a necessity for the 21st century and society. Nobody would disagree with this assertion but, unfortunately, the broadband issue has almost become a toxic one in rural Ireland and in communities such as my own which have heard about the national broadband schemes but they have never materialised.
As the Minister of State knows, the broadband deficit is huge in rural areas. In my constituency of Longford-Westmeath, for example, there are many areas which have no broadband or patchy broadband at best. We seem to have an increasing urban-rural divide when it comes to available broadband speeds. Some rural areas have no broadband while some urban areas enjoy state-of-the-art broadband speeds. There is no question but that the midlands region can benefit hugely from improved broadband infrastructure and I hope this national broadband plan can provide a basis for regional economic growth and job creation in the midlands and across the country. Good broadband can level the playing field for small businesses and it is an essential piece of business infrastructure but, sadly, there is a deficit in many areas.
The State has been very insincere in its approach to this. We have heard about all the Mickey Mouse plans over the past number of years. It must be fibre going into every house and community. There is a network there with the ESB. It must be fibre because anything else is tinkering around the edges. We did it in the 1930s and 1940s with the ESB.
I will take the two questions in the short time available. It is a complex process because we must adhere to EU competition guidelines. The Department is not in a position to say whether it will be fibre, copper or wireless or a combination. I agree with Deputy Moynihan that fibre is where it is at in terms of business, whether the MANs network or Project Kelvin in the north west. The competitive nature of this and compliance with EU regulations are important. We are looking at a constructive timeframe post-summer 2015 and at going to tender. Whether it will be a bidder or a combination of bidders, this is where the focus must be.
The physical infrastructure is there. We have ESB and Eircom infrastructures. There are also wireless solutions. A gap will be filled by commercial companies. The ESB has already announced 50 towns and Eircom announced another project in the past month targeting other towns, but there will be gaps.
There is a map. I encourage the Deputies to go to the local authorities, including that in Longford-Westmeath. I am sure there is engagement with the Department of Communications, Energy and Natural Resources. They know what is available, what is missing and what is included. If there are to be changes on the map between now and summer 2015, there is an option there. Again, I encourage Deputies to engage with the local authorities which are already doing this at a formal level. If there are to be changes to the map, let us make them.
We are moving into a new space in regard to broadband. It is not just about providing broadband for present day needs. We have to look at how this broadband infrastructure, both commercial and State-led, will provide for the needs ahead, whatever they will be. Things are changing so quickly. I do not know what the needs will be but the people involved in the industry know where broadband capabilities, supply and services will be in the next ten to 20 years.
Written Answers follow Adjournment.