As Deputy Eamon Ryan is as láthair, Question No. 5 in his name cannot be taken.
Other Questions
Question No. 5 replied to with Written Answers.
Hydraulic Fracturing Policy
Paul Murphy
Ceist:6. Deputy Paul Murphy asked the Minister for Communications, Energy and Natural Resources when he will receive the report on the outcome of an all-island research programme on unconventional gas exploration and extraction, and if he will make a statement on the matter. [21622/16]
When does the Minister expect to receive a report on the outcome of an all-island research programme on fracking? I understand the previous Government, when asked if it was in favour of a ban on fracking, repeatedly said maybe but that it wanted to wait to see the outcome of this report. Does the Minister expect to have the report soon? What is the attitude of this Minister and this Government to the need for a nationwide ban on fracking?
I thank the Deputy for his question on an issue that exercises many people in different parts of the country.
In coming to a view on whether unconventional gas exploration and extraction could be permitted in Ireland, it was considered necessary in the first instance to establish if this technology could be carried out in a manner that would not negatively impact on the environment and human health. Having consulted publicly on the terms of reference for a research programme, the issues identified on foot of this process have been included in the scope of the research programme being administered by the Environmental Protection Agency, EPA, with oversight from a broad based steering committee that includes my Department.
At the beginning of this year, the steering committee took the view that it was an appropriate time to reflect on the overall timeline for the delivery of the research programme. As the original timeline envisaged that the entire programme, including work carried out under a supplementary tender, would conclude by late 2016, it was considered that were the supplementary tender process to be commenced, that the overall research programme would now not report until 2018 at the earliest.
As the request for tenders through which the CDM Smith consortium was appointed did not envisage an interim report, a revised scope of work was agreed with the consortium to combine all of the work to date into a meaningful synthesis report. It is anticipated that this report will be published by year end.
I would like to reiterate that no application to engage in unconventional gas exploration and extraction has been received in my Department, nor would any such application, if submitted, be considered until the research programme has concluded and there has been time to consider its findings. Any policy decision will be taken in the context of the objective of achieving a low carbon energy system by 2050.
I do not think it is necessary to go through this process of a research programme and report. I understand Friends of the Earth and others have criticised the process by which it is being done. The evidence is quite strong already with the result that countries, including France, Tunisia and, Bulgaria, have already decided on nationwide bans on fracking. We have evidence from America where fracking is the most developed and where state regulators have documented at least 1,000 instances of water contamination, which would be one of the serious risks here, posing threats to our rivers, streams and ground water and to people's health and livelihoods. Separately but connected there is the question of carbon emissions in that the average fracking well releases an estimated 110 lbs of methane, which obviously contains plenty of carbon. It does not tally with our having any attempt of reaching the EU target in terms of carbon emissions.
Obviously, a decision was made by the Department in conjunction with other bodies to go down the route of a report. The report will gather together all the available data and information on the issue of unconventional gas exploration and extraction. The report is due by the end of this year at the latest, and possibly earlier, but we are saying by the end of this year. I believe the right thing to do is to wait for this report. Perhaps the Deputy will be pleasantly surprised when it is published. I am not going to pre-empt its contents but there has been a wide public consultation on the terms of reference and a number of bodies, including my Department, the EPA, and the Northern Ireland Department of Energy and others, have been engaged in this report. It is prudent to await the outcome of it.
I will give a very concrete reason the Government should not wait until the end of the year and the answer is CETA, the Comprehensive Economic and Trade Agreement with Canada, which is likely to come into force in a preliminary way before the end of the year. That includes an investor-state dispute settlement, ISDS, mechanism.
Under a similar ISDS, the Lone Pine company has sued Canada precisely because Quebec has introduced a moratorium on fracking. The claim is for $250 million. If we do not put a ban in place in advance of CETA and ISDS coming into effect, any future decision to introduce one could cost the State a significant sum in a private court for what is seen as indirect expropriation and an interference with the right to profit.
It has been decided that it is best to gather the information necessary to make the best informed decision. It was fast-tracked in terms of the synthesis report. Rather than waiting until the end of 2018, it was decided, based on the best scientific evidence internationally, to produce a synthesis report before going further to phase 2, if that is what the report suggests should be done. I am sure the Deputy would prefer to see a report by the end of 2016 rather than 2018. The report could say there is a role and to go ahead or it might say we should not go down the road of unconventional gas exploration. I am not going to pre-empt what the report will say but it will be published in the next number of months. It will be imminent when we return from the recess, so I ask that we wait for that.
If the Government costs the State €10 million or €100 million, there will be a responsibility then.
Renewable Energy Generation Targets
James Lawless
Ceist:7. Deputy James Lawless asked the Minister for Communications, Energy and Natural Resources the projected targets for solar energy in relation to our energy needs and requirements by 2020, his efforts to meet these targets, what he has done to encourage the development of the solar energy industry, and if he will make a statement on the matter. [21618/16]
The question relates to our investment in solar energy. In fairness to the Department, progress has been made towards our renewable targets for 2020 but I am not sure where solar fits into the mix at present. I would like some information and detail in that regard.
The programme for Government contains a commitment to facilitate the development of solar energy projects. This commitment builds on the energy White Paper published in December 2015 and recognises that solar photo voltaic also has the potential to provide a community dividend thereby enhancing citizen participation in Ireland's energy future. It is widely recognised that solar photo voltaic technology has become more cost competitive for electricity generation over the past few years not only compared with other renewables but also compared with conventional forms of generation. With the significant changes in the cost of the technology, the deployment of solar photo voltaic in Ireland has only recently become a potential cost-effective option to increase energy security, contribute to our renewable energy targets and support economic growth and jobs. It is also recognised, however, that while the cost competitiveness of solar photo voltaic has improved, it would still require a subsidy in order to be developed on a commercial basis. In depth economic analysis is under way to inform the costing of a new renewable electricity support scheme. While no decision has been taken on the precise renewable technologies to be supported, the cost and technical viability of a range of renewable technologies is being assessed, including solar photo voltaic.
Designing and implementing a new scheme is a complex task and it is expected that the broad details of the new scheme will be available early next year. Before these details are announced, the Department will run a second public consultation, which will give all interested parties an opportunity to have an input into the design of the new scheme. Ultimately, the introduction of any new scheme will be subject to Government approval and state aid clearance by the European Commission. While there are no specific targets in relation to any individual renewable energy technology, any renewable energy technology that is built and connected before 2020 can contribute towards Ireland's 2020 renewable energy target. This may include solar photo voltaic.
I am interested in the citizens' dividend the Minister mentioned. I have an interest in the area of microgeneration where citizens erect their own solar photo voltaic generators to power their own homes and business, which is what I think the Minister was referring to. There is also a concept of offset whereby they can contribute back to the grid where they produce excess energy. This has been very successfully achieved in Germany and Portugal in recent months. They actually achieved negative pricing at one stage. The utility companies might not be too happy about that but it works very much for the consumer. I was informed by a constituent recently that the microgeneration scheme run by the ESB had been withdrawn. This individual had a number of panels on his roof and was benefitting from participation in this very beneficial scheme. It goes back to citizens and their obligations and opportunities to benefit from this technology. I ask the Minister to look at that and, in particular, the withdrawal of the service by the ESB with a view to bringing it back on stream.
I am actively looking at that at the moment. I am concerned that Electric Ireland has withdrawn the scheme for new customers. I am surprised the other operators never offered it. Electric Ireland was the only company that offered access to the grid for microgeneration. Deputy Eamon Ryan noted during the debate on the Energy Bill 2016 that there are issues in regard to microgeneration having regard to stability on the grid where significant numbers of projects are involved. We do not have a large number of microgeneration projects currently. No more than the discussion we had at the select committee earlier on today, this is something we are looking at actively and it is something we are going to look at next Wednesday when we discuss the Energy Bill again. Access to the grid is only one aspect of this. Another aspect is the stability of the grid when one has a large number of generators on it. There is also the cost aspect and the requirement for smart metering of the income to be generated. There are a number of complexities which we are actively looking at.
I appreciate that this is a complex area with many facets. It is essential to incorporate solar as part of our mixed basket. I was interested in a recent SEAI report which identified a number of measures to be adopted, including electric vehicles, insulation, renewable heat sources and the usual targets. It focused on wind at the expense of the inclusion of solar in the report. We know wind has its difficulties, which we discussed before. Solar is late to market but perhaps it can learn lessons from the experience with other renewable sources which may be less attractive.
During the debate on the Energy Bill 2016, a number of the Deputy's colleagues mentioned concerns at community level in regard to solar. Deputy Thomas Byrne mentioned it and I asked him to come back to me in regard to these issues because we need to ensure that if guidelines need to be put in place, they are put in place at the start and are practical, possible to implement, reasonable and take into account the need for community engagement. I do not mean bringing the community together to tell it what is going on. It is about bringing the community together to talk about what the options are, how they can be involved and the give and take in regard to these projects. It should not be a matter of one-way traffic. That is important. The difficulty with solar photo voltaic up to now has been the KPMG study which showed that the subsidy it required was roughly €150 per megawatt. Large-scale wind is currently subsidised at approximately €70 per megawatt while I am told at European level that offshore wind is subsidised at approximately €100 per megawatt. The costs are the problem. I had a meeting recently with a Chinese manufacturer who said that the costs are being driven down, so it may be that we can meet somewhere in the middle.
Broadband Service Provision
Brendan Smith
Ceist:8. Deputy Brendan Smith asked the Minister for Communications, Energy and Natural Resources further to Parliamentary Question No. 601 of 8 June 2016, if he has had discussions with ComReg regarding the application of a universal service obligation on broadband telecommunications providers; and if he will make a statement on the matter. [21511/16]
I have previously raised the possible application of a universal service obligation on telecommunications companies to provide broadband. I am concerned that rural, thinly-populated and isolated communities will not get the service they need and that companies will cherry-pick the populated areas. As such, an obligation should be placed on them to provide a universal broadband service throughout the country.
I thank the Deputy for his question. Currently, there is no universal service obligation, USO, in respect of high-speed broadband provision. The USO in place relates solely to voice telephony and functional Internet access to a level of 28.8 kbps and is provided for under the EU regulatory framework governing telecoms. The introduction of a USO would give a legal right to individuals to request a broadband connection from a provider at a minimum speed that would have to be defined. The USO provisions in respect of voice telephony have ensured voice services are available nationwide. Where high-speed broadband networks are available, a USO could provide a useful tool to ensure all premises within a network area would have a connection.
While the current EU regulatory framework only provides for a basic broadband USO, the review of the regulatory framework which is due to commence later this year will give member states an opportunity to include a high-speed broadband USO as part of any new framework. I have already raised this issue with my ministerial colleagues at the Council of Ministers. The national broadband plan, NBP, intervention will effectively act as a USO by ensuring every home, school and business in the intervention area is capable of having an affordable high-speed broadband connection for the entire period of the contract.
The question of a USO in rural areas may arise when the 25-year contract expires but not until then. This could provide a useful regulatory vehicle so as to ensure affordable services continue to be provided for all consumers in the area. Effective regulation such as the introduction of a USO can deal with many of the concerns that may arise in the coming years and on the expiry of any contract awarded by the State. My officials and I are also discussing with ComReg the possibility of introducing a broadband USO as a future-proofing measure so as to ensure no premises will be left without a service in areas not covered by the NBP intervention.
I thank the Minister for his response and indicating that he will provide for a USO. I hope his departmental officials, in their discussions with ComReg, will stress the urgency of this matter. The Minister has mentioned that he has raised it with his colleagues at the Council of Communications Ministers. I hope progress will be made more quickly in this instance than in the case of roaming charges. I had exchanges with the Minister's predecessors a number of years ago on the prolonged time it was taking for the roaming charges decision to be implemented. The target date was the middle of 2014, but it was postponed. I stress the urgency of ensuring the regulatory framework is put in place so as to ensure a USO will be placed on telecoms companies. Whatever must be done at EU level should be progressed rapidly. Unfortunately, we are all aware that issues can be dragged out at European level for a long time before decisions are reached.
As the Minister well knows and as he will see from the other questions I have submitted for answer today, in the counties of Cavan and Monaghan there is an inadequate broadband telecommunications infrastructure. This is hurting farming, businesses and households.
To deal with the Deputy's specific concerns about the USO, we have 26 years to get this right and neither he nor I will need to worry about the issues he has raised. It is my intention to have matters set in train long before then. The USO will not affect 96% of the country, geographically, for 26 years. In the intervening period the NBP will effectively provide for a USO. It is our determination to ensure every premises outside the blue areas which are mainly urban will have direct access to high-speed broadband within the next five years. The issue will arise in the shorter term in urban, or blue, areas. Even within a couple of miles of where we are standing, individual homes and premises are unable to secure a high-speed broadband connection. We hope that in providing for a USO we will deal with that issue in the short term, but it will not arise for the people of Cavan and Monaghan until the contract under the NBP expires. It is my determination and that of the Minister for Arts, Heritage and the Gaeltacht, Deputy Heather Humphreys, to ensure premises in Cavan, Monaghan, Roscommon, Galway and everywhere else will have a high-speed broadband within that period.
I stress the need for the broadband plan to be rolled out as rapidly as possible in areas such as mine. It is drumlin country in which there is poor mobile phone coverage. The Minister mentioned that there was a USO in respect of voice telephony. I presume that this includes mobile telephony.
It is not included. Although I am broadening the question, people nowadays remove landlines from their homes because of the costs involved and their daily business is transacted on mobile phones. Will the Minister consider trying to ensure telecoms companies which generate significant revenues from their mobile phone services will provide an adequate service? Regardless of where I travel in my area along the Border, the coverage is dreadful and mobile companies have refused to make the necessary extra investment. I recently read a report about eir planning on investing, but a dramatic upgrade of the mobile telephony infrastructure is urgently needed.
The Deputy is right about mobile telephony. There is no plan to introduce a USO in respect of mobile telephony. If we have one in respect of broadband and fixed line services, it will address the issue for every business. Part of the problem in respect of mobile telephony is obtaining planning permission. In the Deputy's county of Cavan the development contribution in the case of a mobile phone mast is €15,000. In County Roscommon there is none.
Companies could co-locate more effectively.
In County Monaghan the contribution is €10,000 and in Galway, €20,000. There are major variations in the granting of planning permission. In fairness, approximately 86% of applications in County Cavan are granted initially, but let us consider the costs involved in terms of site rental; development contributions; in building the mast; linking with fibre services and servicing. These considerations are weighed.
Co-location has not been maximised by the companies involved.
The task force will examine that and other issues in the short term.
Greenhouse Gas Emissions
Ruth Coppinger
Ceist:9. Deputy Ruth Coppinger asked the Minister for Communications, Energy and Natural Resources his plans to reduce carbon emissions due to energy production as part of the transition to a low-carbon society; and if he will make a statement on the matter. [21589/16]
Dealing with two Smiths in a row is probably too much for the Minister, but we are not related, thank God.
Is the Deputy sure?
I ask this question in the light of the fact that the Environmental Protection Agency, EPA, and the European Commission's country report have shown that Ireland is falling short in meeting its 2020 targets. Despite what some noble Kerrymen might say about the man upstairs, climate change is a scientific fact, one to which we must respond with a greater sense of urgency and concern.
Achieving our climate and energy objectives requires a whole-of-government approach and I am working closely with relevant colleagues in this regard. The White Paper on Energy Policy in Ireland sets out a vision of a low-carbon energy system in which greenhouse gas emissions from the energy sector will be reduced by between 80% and 95% of 1990 levels by 2050, 400 months from now, and where alternative and renewable energy sources will play a dominant role in our future energy mix. In addition, the programme for Government sets out a range of priority climate actions and interventions, a number of which have a direct bearing on the energy efficiency and renewable energy sector. In combination, these will help to increase and diversify Ireland's renewable energy mix across the electricity, heating and transport sectors.
The EU renewable energy directive set Ireland a legally binding target of meeting 16% of our energy demand from renewable sources by 2020. Ireland is committed to achieving this target through meeting 40% of electricity demand, 12% of heat demand and 10% of transport demand from renewable energy sources, with the transport target being legally binding. The Government has a range of policy measures and schemes to incentivise the use of renewable energy sources and although good progress towards the target has been made to date, meeting the 16% target remains challenging.
The renewable energy feed-in tariff schemes support the development of a range of renewable electricity technologies, including those associated with hydroelectricity, biomass combustion, biomass combined heat and power, landfill gas and onshore wind energy projects. It is estimated that 25.3% of electricity was generated from renewable sources in 2015.
Work is ongoing in my Department on the development of a new renewable electricity support scheme to encourage the development of Ireland’s abundant and indigenous renewable energy resources. The scheme will examine the viability of supporting a range of new renewable energy technologies in Ireland, including solar, bioenergy and ocean energy technologies, and will help to further reduce emissions in the electricity sector.
My experience so far of the plans and strategy of the Government, which experience is borne out by many in this Chamber and also by reputable organisations such as Trócaire, is that there is no genuine, concerted, holistic plan using joined-up thinking to take on the considerable challenge of reducing our carbon emissions. In order to meet targets set for 2020, policies and plans have to be developed with understanding, ambition and targets that will increase consistently and persistently in the next decade. Given that we found it so difficult this morning even to secure a legislative commitment that an environmentalist would be included in the board of SEAI, I would not be too hopeful, unless the Minister can convince me otherwise. So far, experience shows that it will be like pulling teeth. I will make a point which proves this when I get to speak again.
In fairness, we are but 71 days in office. It is great that the Deputy has gained such experience in those 71 days to make a call like this on the matter. As she knows, I committed earlier today that we would actually appoint an environmentalist. We can talk about the theory all we like, but the reality concerns practice. I agree with the Deputy that we should have someone with environmental expertise in the SEAI. There is considerable merit in that suggestion and I am willing to do as proposed and work with the Deputy in that regard. I gave that commitment to the committee earlier today, just as I made a commitment to all colleagues earlier today in dealing with each of the amendments tabled and trying to come up with practical solutions within the confines and time limits laid down. The reality is that we are all anxious to have the legislation enacted and operable before the summer recess. As the Deputy knows, there has been a delay here by comparison with what has happened in Northern Ireland where legislation has already been passed.
I accept that the Minister made a commitment, but he was very opposed to including it in the legislation. We are here to legislate and change legislation. As I pointed out to him, a commitment by an individual is not the same as having legislative change which insists on there being an environmentalist on the committee to fight climate change. That is what we will continue to fight for.
Trócaire, in its document "The Burning Question" which is well worth reading and which the Minister has probably read-----
I have read it.
-----is calling on the new Government to review the investments it makes to bring them into line with international climate change obligations. The NTMA Act allows the Irish Strategic Investment Fund which is to be reviewed to invest in fossil fuel production. One of the worst investments made was an investment by the State in a TransCanada pipeline from the tar sands in Alberta to the Gulf of Mexico. It involves one of the dirtiest means of extracting fossil fuels from the planet and we have a direct investment in it. There has to be joined-up thinking by the Government on how we should seriously set out to achieve these targets.
I have read the report and noted what Trócaire has stated about investments. We are examining this matter. It is not just about making legislative change; it is also about real change, not just in the way we do things but in changing the attitudes and perceptions of the public. Part of the difficulty was that the last Government failed to recognise that while one could change the law, as it did in many areas - it was sometimes opposed by Deputy Bríd Smith from outside the House - it did not necessarily translate into real change on the ground that would bring people with it in working with it on legislation that would have a practical and real impact. That is what is important.
It is a small amendment to which the Minister is opposedt.
On the broader issue, we are examining the heating sector. There is a lot that will be coming down the tracks within the next 12 months. I look forward to the Deputy's participation in some of the public consultations and getting feedback from her.
Inland Fisheries Regulation
Catherine Connolly
Ceist:10. Deputy Catherine Connolly asked the Minister for Communications, Energy and Natural Resources his plans to review pike management operations using gill nets and electrofishing; and if he will make a statement on the matter. [21012/16]
On a very specific issue, will the Minister of State clarify the position on the pike management operation? In particular, has the review started and, if so, when did it start and when will it be completed? Excuse the pun but that is the net issue.
I thank the Deputy for the question.
On 4 July Inland Fisheries Ireland, IFI, published the timetable for the review of the national pike and brown trout policies. These policies deal with the established practice of controlling pike in waters which are designated as primary wild brown trout fisheries and where the principal predator, pike, is managed to optimise wild brown trout stocks for anglers.
Following the appointment of an internal IFI policy review group later this month, the review process will commence with a scoping consultation which will be open to all parties. As part of the policy development process, fish stock management methodologies, including gill netting and electrofishing, will be carefully reviewed. IFI will have regard to scientific advice and best practice internationally. It is working to ensure the completion of this process in as consultative a way as possible which will ensure all interested parties can have an input into policy formulation. It hopes to receive the agreed views of angler stakeholder groups, domestic and tourist anglers, tourism providers and the general public.
No decision has been taken on the cessation or otherwise of pike management operations in designated trout waters for 2017. It is expected that the updated pike and trout policy documents will be available in July 2017.
I ask this question very carefully as somebody from Galway who realises the value of salmon and trout. At the same time, I know that there has been great unease among pike anglers about this matter. It is welcome that there is a review under way. I am not clear on what the Minister of State said about the actual consultation process and about how open and accessible it will be to all stakeholders. Perhaps he might clarify the matter for me.
The national policy for the management of trout, pike and bass was launched in 2014. The various policies seek to provide for the best conservation and management of bass, pike and trout in Ireland and will help to ensure the sustainability of stocks. The policy review group which will be established later this month to review the process will comprise appropriate staff who will draft both the pike and trout policies to ensure consistency. It will consider the views expressed in the public consultation process, relevant signs and historical data for inland fisheries.
The Deputy, coming from the west, will acknowledge there is particular concern about pike in the managed lakes in counties Galway and Mayo and such areas. We acknowledge there is a divergence of opinion among trout anglers and pike anglers in different parts of the country.
I agree that there is certainly a divergence of opinion, but it is time, as part of the review process, that all sides were heard. There is also value to pike anglers. They have given me extraordinary figures which indicate a reduction in the number of visitors from 43,000 to 7,200 in the last year. There are issues arising and the anglers are looking for a process in which they will be heard and will be able to make submissions. The Minister is confirming that this will happen, but it concerns me that the deadline is next year. I would have thought this process could have been completed in a much shorter timeframe. The arrangement has not yet been set up and it will run until next year, until July, which seems to be a very long period in which to deal with this matter, given the implications for tourism and revenue generation in local areas.
I will obtain a more accurate update in the coming weeks as the matter evolves. All of this is based very much on scientific advice and work.
For example, the brown trout fisheries that are designated under the pike management include loughs Corrib, Mask, Carra, Conn, Cullin, Arrow and Sheelin, whereas previous research carried out by scientists from Inland Fisheries Ireland indicated that pike removal from waters such as loughs Inagh, Owel and Derravaragh was deemed unnecessary at the time. As a consequence, these operations were terminated and pike management in these waters currently involves the removal of pike by netting and-or electro-fishing. This approach is based on scientific evidence provided by appropriate scientists in Inland Fisheries Ireland. It is not done because a particular group wants it done but on the basis of scientific advice and the monitoring of the populations and predation levels on the trout lakes.
National Broadband Plan
Brian Stanley
Ceist:11. Deputy Brian Stanley asked the Minister for Communications, Energy and Natural Resources if he has estimated the future capital value of the national broadband network by 2043. [21518/16]
The question relates to the roll-out of the national broadband plan. The establishment of a national broadband network will be welcomed in my constituency, which covers Laois and part of south County Kildare, and every corner of the State. The question asks what will be the value of the network.
The programme for a partnership Government commits to the delivery of high-speed broadband under the national broadband plan as a matter of priority. This is being achieved through private investment by commercial telecommunications companies and a State intervention under the national broadband plan in areas where commercial investment is not forthcoming.
On 5 July 2016, the Government selected the commercial stimulus model as the optimum ownership model for the network that will be part-funded by the Exchequer. The Government considered two ownership models, having narrowed down the options last December from five models. The two models are the commercial stimulus model under which the private sector finances, designs, builds, owns and operates the network, with contractual obligations to the Department, and the full concession model under which the private sector finances, designs, builds and operates the network with contractual obligations to the Department. In the latter model, assets funded by the State are handed back to the State after 25 years, while commercial assets that support the national broadband plan infrastructure would however remain in private ownership.
Both models will deliver the same network, with the same service specifications and controls for 25 years. In both models, the winning bidder or bidders will be subject to stringent contract provisions to ensure the network delivers quality, affordable high-speed broadband to all parts of Ireland that cannot access services.
The Department has completed detailed costings, down to every individual premises in the intervention area. On that basis, it has modelled the likely cost of each ownership model. It would not be appropriate to publish the expected cost of building the network, the likely cost to the State or the expected terminal value of the network while a major public procurement process is under way. I do not intend, therefore, to indicate the overall estimated Exchequer funding parameters or projected costs or values of the network. Ultimately, the costs will depend on the price bidder quote in the tender process. The future capital value of the network will rely on a variety of factors, including the level of demand, technology developments over the next 25 years and potential alternative networks. Any estimation of the value of the network in 25 years' time would be highly speculative.
The national broadband plan is a major undertaking which has been compared with rural electrification. It will certainly be as important as rural electrification from a social and economic point of view. As a representative of a rural constituency, the Minister will be aware that the lack of broadband has retarded social and economic development in rural areas. While Sinn Féin wants the network to be rolled out quickly and without delay, we also want taxpayers to obtain value for their investment. The potential return to the State of delivering high-speed broadband to rural areas will be quickly realised. As the Minister stated in reply to an earlier question, 26 years is a long time. However, it is not that long since the lads to my right on the Fianna Fáil benches privatised Telecom Éireann. I remember that decision clearly and we have lived with its negative effects. For this reason, we need to take a long view.
I am conscious of the point made by the Deputy, and other Deputies in a Private Members' debate last week. I have the same inclination as the Deputy in respect of public assets. It is important to note, however, that the asset we are purchasing is not like the Telecom Éireann asset, which was a full copper network that covered every corner of the country. We are purchasing part of a network by building onto a network that is in private ownership. The private sector has spent €2 billion developing this network to which we will connect a further 1 million homes. This is akin to buying a car without an engine and part of the problem is that we are not buying a full car.
The Government weighed up the commercial stimulus model and had regard to the full impact of the full concession model on the Government balance sheet over the period in question. We made our decision based on this impact and the delays in the roll-out of broadband that would arise under the second model.
The key issues are the need to roll out a national broadband network and to secure value for money for service users and the taxpayers who will provide the funding for the plan. Control and efficiency are the key pillars on which the plan must be built if it is to succeed.
On the last mile - I cannot think of a better way to describe it - the private sector will own the mains infrastructure. Some private sector companies are concerned about this, as the Minister and I both know because they have raised the matter with us.
I ask the Deputy to elaborate as I am not getting the gist of his argument.
At least one major company has serious concerns about the private sector controlling and owning the mains channels. Who will own the last mile, in other words, the hard to reach part for which the State will pay? Who will own that cable?
I agree with everything the Deputy said on the objectives behind the national broadband plan. This is the reason I made the decision with a heavy heart. However, the model I selected met all of the criteria the Deputy set out compared with the other model.
To respond to the Deputy's question on the last mile, 26 years from now, the last mile will be owned by the private sector. For the next 25 years, however, it will be controlled by the State and managed by a separate entity. However, we now have 25 years to put in place proper regulations, including a universal service obligation. It should be noted that we have a universal service obligation in place for voice services and we are not inundated with complaints from people who cannot get access to a telephone line. The universal service obligation on voice services is, therefore, working and we must ensure a similar obligation is in place in 26 years to ensure people have access to real and genuine high-speed broadband.
Hydraulic Fracturing
Clare Daly
Ceist:12. Deputy Clare Daly asked the Minister for Communications, Energy and Natural Resources if he will consult the group, Concerned Health Professionals of Ireland, regarding the human health effects of the process of hydraulic fracturing. [21508/16]
I note the comment of the Minister of State in response to an earlier question from Deputy Catherine Murphy that he did not want to pre-empt the outcome of a report into hydraulic fracturing or fracking. It is not necessary to await the report because a large amount of information is available that allows a conclusive judgment to be made on the matter, namely, that we should not proceed any further with hydraulic fracturing on this island. Against an international backdrop of growing health concerns related to fracking and given the absence of any consultative forum, will the Minister of State consult concerned health professionals and others to examine this issue?
I thank the Deputy for her question. As she will be aware, the Environmental Protection Agency, EPA, has commissioned a research programme into the potential impacts of unconventional gas exploration and extraction on the environment and human health. It should be noted that the draft terms of reference for this programme were the subject of a public consultation process which resulted in an amended and strengthened scope for the programme, including a key recommendation that the potential impacts from unconventional gas exploration and extraction on human health be considered as part of the project.
In this regard, the tender documents refer specifically to potential health impacts deriving from impacts on environment parameters, including exposure to chemicals, vibration, light and noise as well as the potential pollution of environmental parameters such as soils, air and water. The experience in other countries in this regard will be considered as well with a view to making recommendations towards developing a protocol in an island-of-Ireland context.
However, I emphasise that any requirement for a health impact assessment into unconventional gas exploration and extraction would only arise if an application to carry out a development proposing the use of this technology were being considered. As I have advised Deputy Murphy previously, no application to engage in unconventional gas exploration has been received in my Department, nor would any such application, if submitted, be considered until the research programme has concluded and there has been time to consider its findings. It is anticipated that a synthesis report concluding on the findings of the research programme to date will be published by the end of this year. Any policy decision will be taken in the context of the objective of achieving a low-carbon energy system by 2050.
There is a major problem with all of this. The former Deputy, Mr. Colreavy, accurately warned the Oireachtas committee last year that fracking was essentially taking on a momentum of its own against the backdrop whereby we still do not fully understand the extraordinary health impacts. That is frightening, especially given that in Antrim, the oil extraction company InfraStrata recently began test drilling on land owned by Northern Ireland Water without planning or environmental assessment and without any consultation. The sad thing is that occurrence has now set the precedent for these matters on this island.
I put it to the Minister of State that the Environmental Protection Agency does not have access to the medical experts who need to evaluate this matter. It is a fact now that in 80% of the peer-reviewed studies conducted since 2013 - a total of 226 were undertaken in 2015 - the results were of concern. In all of the areas where the studies have been done serious hazards have been identified. We really should call it a day at this stage before we get into even more serious trouble.
A key question to be answered by the joint research programme is whether unconventional gas exploration and extraction can be carried out on the island of Ireland while protecting the environment and human health. Project C of the programme covers the regulatory framework for environmental protection. It will include discussion on approaches of other countries with regard to health impact assessments and will also include recommendations for a protocol for Ireland with regard to health impact assessments. Project B relates to impacts and mitigation measures. This project will address water and other potential impact and mitigation measures. It will examine the impact from unconventional gas exploration projects on human beings.
Deputy Daly asked whether there would be consultation. I have met any group that has sought to meet me since I became a Minister of State. I do not recall receiving a letter from the medical expert group. If Deputy Daly wishes to arrange such a meeting, I will be happy to listen. It only costs time and I have no problem doing it. The evidence will be taken into account. The international evidence taken into account in the synthesis report will be published before the end of the year.
The scary thing is that the evidence is already available for us to be able to say that we really should not go any further. It is not unfair to say that the EPA study was probably compromised from the start. There is no great degree of public confidence in it given the involvement of an oil and gas provider in drawing up the terms of reference and given that some of the contractors are involved in projects which promote fracking. We have to be honest and say there is no political support for this whatsoever. At the same time, substantial bodies of scientific literature indicate serious and elevated hazards to human health.
For all of these reasons there is a need to be vigilant. Yet, we seem to be saying that there is no need to worry, that there is nothing to see and that we can be reassured and everything will be grand. Everything is not grand because we are moving nearer to the destination of this very unpopular health-hazardous practice being developed on this island. Nothing can assuage people of those concerns.
As I said to Deputy Murphy, when the Dáil comes back in September the publication of the report will be imminent. I know that concern has been expressed. However, the consortium that has undertaken the work includes CDM Smith, the British Geological Survey, University College Dublin, Ulster of University, Amec Foster Wheeler and Philip Lee Solicitors.
The terms of reference went out on public consultation and there was change following that public consultation. The contract award process chosen for the competition was an open procedure process. A total of six tenders were received and the contract was awarded following robust evaluation. There was an evaluation panel consisting of 27 existing and retired personnel from various respected bodies, including An Bord Pleanála, the Commission for Energy Regulation, our Department, the Department of the Environment, Community and Local Government, the Environmental Protection Agency, the Health Service Executive and the Geological Survey of Ireland. There has been a wide range of expertise available and public consultation. The synthesis report will collate all the information. As I said to Deputy Murphy, this has been fast-tracked. Instead of waiting until the end of 2018 there will be a synthesis report, an interim report, published by the end of this year and that will yield many answers I am sure.
Renewable Energy Generation Targets
Timmy Dooley
Ceist:13. Deputy Timmy Dooley asked the Minister for Communications, Energy and Natural Resources whether Ireland is on target to meet binding European Union 2020 renewable targets; to provide details of the fines that will be realised if not achieved; and if he will make a statement on the matter. [21628/16]
Will the Minister indicate whether Ireland is on target to meet binding European Union 2020 renewable targets? What fines will accrue if this is not realised? Does the Minister agree that this is a major challenge facing the people?
I think this is the first question I have taken from a constituency colleague. Deputy Murphy asked whether it is major challenge. Yes, it is. It is not only a major challenge globally but locally in our constituency as well. We saw the devastating impact last December of the flooding. We have had ongoing flooding in turloughs since then. We have had issues of flash flooding throughout our constituency as well. This is an issue for all of us.
The 2009 EU renewable energy directive set Ireland a legally binding target of meeting 16% of our energy requirements from renewable energy sources by 2020. To meet this target, Ireland is committed to meeting 40% of electricity demand by renewable sources, 12% renewables in the heating sector and 10% in transport. The Government has adopted a range of support measures designed to meet our binding targets. Although good progress towards the target has been made to date, meeting the 16% target remains challenging. Provisional data from the Sustainable Energy Authority of Ireland indicates we had reached 9.2% of the overall 16% target at the end of 2015.
In the electricity sector the primary support mechanisms introduced for renewable electricity are the alternative energy requirement schemes and the renewable energy feed-in-tariff schemes. These schemes have proved successful at incentivising the development of the renewable electricity generation capacity necessary to meet our 40% renewable electricity target. Provisional figures show that in 2015 some 25.3% of electricity demand was met by renewable sources.
In the heating sector my Department is working on the introduction of a new renewable heat incentive to support the deployment of renewable energy in the sector. The primary aim of the RHI is to build on the progress already made in heating and to help reach our 12% target by 2020. In 2015 it is estimated that 6.8% of heat was derived from renewable sources.
In the transport sector Ireland aims to meet our renewable target mainly through the increased use of sustainable biofuels, with electric vehicles making a small contribution as well.
I thank the Minister for his reply. I know him well as a constituency colleague and I know that he is probably one of the most clued-in individuals in the House on this issue. He knows how challenging it is.
What concerns me is that the Irish nation as a whole does not realise the challenge we are facing. The SEAI has estimated that the cost to Ireland may be in the range of €100 million to €150 million for each percentage point Ireland falls short of the overall 16% renewable energy target. In other words, financially it would be a disaster for this nation if we failed to meet the targets. We have to try to explain to people that we have to change and that fossil fuels are going to be a major problem in future. We are going to have to change attitudes. The financial challenges that will arise if we do not reach the targets are extraordinary.
Thank you, Deputy. Unfortunately, time is up.
I wish to make a brief point. Deputy Murphy is right. There is an extraordinary challenge here. We have to take carbon out of our economy in the next 400 months. At EU level we are currently negotiating the targets for the next 160 months up to 2030. That means Deputy Murphy and myself must work together with the communities in our constituencies and in the adjoining counties of Longford, Westmeath and Offaly to provide alternatives to peat-fired electricity generation.
I believe biomass is the solution to that by maintaining jobs within Bord na Móna as well as providing additional cash income to many local small farmers on marginal holdings.
Written Answers are published on the Oireachtas website.