Dáil Éireann Debate, Wednesday - 29 October 2008
108 Deputy Liz McManus asked the Minister for Communications, Energy and Natural Resources the measures he is taking to combat fuel poverty; the number of people experiencing fuel poverty; and if he will make a statement on the matter. [37474/08]
Amharc ar fhreagraThe Government is committed to protecting vulnerable consumers from the impact of rising energy costs through a combination of institutional supports and investment in improving the energy efficiency of the housing stock. I am working closely with the Minister for Social and Family Affairs to deliver a fully cohesive strategic approach across Government and agencies.
We have established an interdepartmental agency group, led by our two Departments, which includes the Departments of Finance, Taoiseach, the Environment, Heritage and Local Government and Health and Children, as well as the Commission for Energy Regulation, Sustainable Energy Ireland, ESB and Bord Gáis. The group is serving as a key co-ordinating body to ensure cohesiveness of the various actions under way and plans to address the energy efficiency and affordability challenges for vulnerable consumers.
One of the root causes of fuel poverty is the legacy of older housing with poor energy efficiency standards. I have already increased the 2008 allocation for the low income housing programme administered by Sustainable Energy Ireland to €5 million. The programme's primary focus is the warmer homes scheme, which provides energy efficiency equipment and insulation as well as energy efficiency advice at little or no cost to eligible households. The increased allocation will enable SEI to fund insulation upgrades for an additional 2,000 vulnerable homes in 2008, bringing the total to 5,000 homes which will be upgraded this year.
Budget 2009 provides an allocation of €5 million for the warmer homes scheme next year, which will be complemented by additional funds from ESB and Bord Gáis. This will substantially increase the number of poorer homes that benefit from improved energy efficiency in 2009.
Government policy has focused in recent years on increasing primary social welfare rates to ensure that people on social welfare can meet their basic living costs, including heating costs, throughout the year. The Minister for Social and Family Affairs provides a range of supplements and allowances, including the electricity and gas allowance and the national fuel allowance, to assist those most in need with their heating costs. The Department of Social and Family Affairs estimates that expenditure on these packages will be in the region of €340 million this year.
No national statistics are generated on the number of people experiencing fuel poverty. However, the EU survey on income and living conditions, which is carried out by the Central Statistics Office each year, measures the number of households that have gone without heating at least once over the previous year due to lack of money. The most recent figures available from this survey indicate that in 2006 some 5.7% of households went without heat at some stage during the year, a slight reduction on the figure in 2005.
Will the Minister accept that establishing another interdepartmental committee is not reassuring? Will he agree that real change requires resourcing and money? Will he accept that increasing the fuel allowance by €2 and providing it for two extra weeks is marginal in terms of benefits that will be felt by the 60,000 people living in fuel poverty? Is the Minister aware that the Institute of Public Health reckons that up to 2,000 people die prematurely each winter because of fuel poverty? Does he have any understanding of the impact of the savage increases in the cost of electricity, gas and home heating experienced by these households?
The Minister stated something of which I was not aware, namely, that funding for the warmer homes scheme would come from the ESB and Bord Gáis. What exactly does this mean? These organisations are being treated like cash cows by the Government. The amount of money coming in on an annual basis has increased significantly and now the ESB and Bord Gáis customers must pay for the fact that the Government has not provided for people living in fuel poverty. Will the Minister explain how much is involved in the commitment he just made?
With regard to the fuel allowance, while one can never provide enough because on cold mornings such as we had today this is a real crisis issue for people on low incomes, the fuel allowance has doubled since 2005, and it rose by approximately 12.5% this year. While it is never at the level one would want, we should recognise the increase that has occurred. Even in the difficult budgetary circumstances we had this year, to increase the length by two weeks and the amount was an important contribution.
The involvement of the ESB and Bord Gáis in the warmer homes scheme is a perfectly good example of an output one gets from such bodies when one brings people together and they agree to all play a part. As two major supply companies, I felt it was appropriate to involve them in such schemes as the warmer homes scheme so we can help people reduce their energy use and not only solve it by providing further payments. Involvement by such supply companies is right and it is an example of where I want to go in terms of the imposition of obligations on all energy supply companies to invest in such efficiency measures for their customers.
I wish to allow a brief supplementary question.
I am sure the Minister is a man of good intention. However, will he accept that, when the only scheme targeting the poor, namely, the warmer homes scheme, receives only €5 million whereas people who can well afford to install energy saving devices are subvented to the tune of 30% through the greener homes scheme, he has his priorities wrong?
Some 400,000 people are supported by the fuel allowance scheme, which is important and a major component——
The price of coal has doubled.
Investment in the warmer homes scheme has been doubled from what it was in the previous year. With the involvement of the energy supply companies, I see no reason that we should not set a growth pattern to double it again. This is what I am working towards in recognition that helping 5,000 households this year is an important development. The approximately 20,000 households we may be able to address through other schemes are equally welcome.
