I thank the committee for the invitation to speak here. I have a long speech which has been circulated already. If it is helpful, I can merely summarise the key issues.
First, the Minister, Deputy Hogan, is presently in Durban dealing with climate change issues. He is coming before the committee next week to discuss in full any issues that arise there and to brief it on the outcome of that conference.
This money is being spent on climate change. All sectors of socio-economic activity - agriculture and food, public health, water management, tourism, transportation, energy production, trade and forestry - are vulnerable. We are trying to co-operate internationally with the United Nations on this issue. This money is being ring-fenced for fast-start finance. It will be €10 million to be paid by Ireland to assist developing countries specifically responding to climate change.
The opportunity to make the proposed contribution arises from savings in the Department's Vote, specifically under subhead B1 from which most of the housing capital programme is funded. It is intended to transfer the funding to subhead D5 on international climate change.
The members are all probably aware of the background, how it arose and what our commitments are. As part of these preparations, Ireland committed to make a contribution of up to €100 million towards a financial package to be provided by developed countries in the three-year period 2010-2012. The purpose of the package was to assist developing countries in addressing climate change. In total, the EU is giving €7.2 billion in what is known as "fast-start finance".
In accordance with Ireland's association with the 2009 Copenhagen accord, the Government proposes, despite our severe difficulties here at home, to follow through on the commitment to the fast-start-finance package.
The term "fast-start finance" arises from the fact that the funding is to be provided over the short term as an interim step in the context of the ongoing international negotiations under the UN Convention. It is an important demonstration of good faith and acts as a down-payment on the efforts to assist developing countries in deploying clean energy, reducing deforestation and adapting to the impacts of global warming. It addresses the need for immediate and ambitious adaptation and mitigation action.
The total EU contribution is clear, €7.2 billion, and we are playing our part in that. To date, Ireland has delivered €66 million towards that commitment. This includes a contribution of €23 million from my Department's Vote in 2010 to the Global Climate Change Alliance established by the European Union in 2007, with the objectives of deepening the policy dialogue between the EU and developing countries on climate change, and providing support to targeted countries for both adaptation and mitigation measures. The balance of the €66 million reflects climate-related funding made available through the overseas development assistance programme of the Department of Foreign Affairs and Trade.
The priority now is to progress further Ireland's commitment to provide immediate financial support and to reassure developing countries that, even in the challenging economic circumstances in which we find ourselves, we recognise both the challenges they face in trying to deal with climate change and their urgent need for assistance. It is for that reason that I am now seeking approval to use this €10 million of available savings to make a further payment to Ireland's fast-start finance contribution, bringing the total contribution over the two years to €76 million.
Of the €10 million contribution under consideration today, it is proposed to make an €8 million contribution through the Global Climate Change Alliance established by the European Commission. The alliance has a strong development focus and is targeted primarily at least developed countries and small island developing states. It is already active in three of Ireland's priority overseas development assistance countries, Ethiopia, Tanzania, and Mozambique and, it is hoped, with further encouragement and support from Ireland, it will reach out to others in due course. Last year's €23 million contribution by Ireland is assigned to support projects in Uganda, Mozambique, Sierra Leone and Vietnam.
In recognising the danger that climate change will further aggravate global food insecurity, one of the objectives of the alliance is to provide priority funding to the agriculture, water and natural resource management sectors, as well as to disaster risk reduction. On the climate front-line, adaptation is not optional; it is an imperative. The cost cannot, and should not, be borne by those least responsible and least able to afford it.
It is proposed to contribute the remaining €2 million to the Least Developed Countries Fund established by the parties to the UNFCCC. The objective of the fund is to address the unique needs of the 48 least developed countries which are especially vulnerable to the adverse impacts of climate change. Support under the fund is targeted at the preparation and implementation of national adaptation programmes of action - a process for least developed countries to identify priority activities that respond to their urgent and immediate needs to adapt to climate change. Delay will inevitably increase their vulnerability and increase the cost of adaptation at a later stage. In total, the proposed contribution of €10 million represents a very positive step towards helping developing countries to deal with climate change and supporting the ongoing international efforts to find agreement on an effective global response. I would greatly welcome the support of the committee for this important Supplementary Estimate. I understand the Minister, Deputy Hogan, is making this point at the international conference in Durban today. He hopes to make his contribution with the consent of the Oireachtas.
With regard to the source of the money, given that the proposed Supplementary Estimate is intended to be financed from savings in the housing programme, I would like to take the opportunity to say a few words on housing, and on the voluntary housing sector in particular. The latter is a significant provider of social housing for persons with specific categories of need. Approximately 25,000 units have been delivered thus far. The capital assistance scheme provides the capital to pay grants to local authorities to enable them to advance loans to approved voluntary bodies providing housing for the elderly, homeless, disabled and other disadvantaged persons. In that context, €90 million was provided under subhead B1 of the Department's Vote for CAS in 2011. Despite the fact that the projected commitments under CAS going into 2011 exceeded the allocation, commitments under the programme were estimated at the start of 2011 to amount to €125 million. Expenditure under the programme during the year had been slow for a number of reasons.
The current economic downturn has caused significant delays for approved projects proceeding under the programme. In particular, disruption in the construction sector has resulted in projects suffering delayed starts, with contractors unable to get insurance bonds or working capital, projects being stretched out to keep smaller workforces in employment and contractors going into receivership and being unable to complete projects. Against a background of such delays, savings of €10 million have been identified in regard to delayed projects to which there are not sufficient alternative schemes currently progressing that could be used to redirect the allocation in 2011.
I appreciate the committee's consideration of this Supplementary Estimate today. I also appreciate that members are looking forward to the wider discussion on climate change with the Minister, Deputy Hogan, next week. I acknowledge that the proposed Supplementary Estimate represents a further substantial contribution by Ireland tothe fast start finance package at a particularly difficult time economically and fiscally. However, I cannot overemphasise the responsibility of developed countries to strengthen and progress the international negotiations by honouring the commitment enshrined in the Copenhagen accord.
