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Thursday, 26 Feb 2015

Written Answers Nos. 234-242

Irish Water Funding

Ceisteanna (235)

Michael McGrath

Ceist:

235. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government if Irish Water has been provided a credit rating by international credit ratings agencies; and if he will make a statement on the matter. [8691/15]

Amharc ar fhreagra

Freagraí scríofa

Irish Water is a non-consolidated subsidiary of Ervia and does not, at this point in time, have a separate credit rating. Ervia has an investment grade credit rating from each of Standard & Poor’s and Moody’s. Each of these ratings reflects the current relationship between Ervia and Irish Water. It is Ervia's intention to seek a stand-alone credit rating for Irish Water at an appropriate time in the future.

Irish Water Funding

Ceisteanna (236, 237)

Michael McGrath

Ceist:

236. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government the current level of borrowing undertaken by Irish Water; its approximate cost; and if he will make a statement on the matter. [8692/15]

Amharc ar fhreagra

Michael McGrath

Ceist:

237. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government the approximate level of borrowing Irish Water will have to undertake, over the next ten years, to fulfil its capital investment programme; and if he will make a statement on the matter. [8693/15]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 236 and 237 together.

Irish Water has a €300 million loan from the NPRF at an annual interest rate of 2.5%.  There is no security for this loan but the loan is guaranteed by the Minister for Finance, for which a separate guarantee fee is payable.

Irish Water has put in place facilities with commercial banks in the amount of €150 million While the names of lenders and applicable interest rates are commercially sensitive the interest rate on the loans are competitive and at market rates. Further facilities of some €250 million are at an advanced stage and are expected to be in place shortly.

Irish Water’s capital investment in the period 2014 to 2021 will be funded by a mix of debt and equity (including capital transfers from Government) with the investment programme for the period after end 2016 being subject to future review by the CER.  Irish Water is in the process of finalising its detailed business plan for the period 2015 to 2021, which will include an analysis of the level of debt that it expects to be in a position to raise.

Under Section 35 (1) (b) of the Water Services (No 2) Act 2013 Irish Water’s current borrowing limit is €2 billion.  Irish Water’s current forecast of total borrowing at end 2016 of €1.7 billion is within this limit.  Under Section 35 (1) (a) any borrowing by Irish Water must be approved by the Minister for the Environment Community and Local Government, the Minister for Communications, Energy and Natural Resources, the Minister for Finance and the Minister for Public Expenditure and Reform.

Local Authority Housing Provision

Ceisteanna (238)

Terence Flanagan

Ceist:

238. Deputy Terence Flanagan asked the Minister for the Environment, Community and Local Government his plans to tackle the housing crisis in Dublin; the new funding that is being provided to tackle social housing lists; the number of homes he expects to be built in 2015; and if he will make a statement on the matter. [8708/15]

Amharc ar fhreagra

Freagraí scríofa

The Social Housing Strategy 2020 builds on the provisions contained in Budget 2015 and sets out clear, measurable actions and targets to increase the supply of social housing, reform delivery arrangements and meet the housing needs of all households on the housing list. The Strategy targets the delivery of 35,000 new social housing units over the period to 2020. The cost to the exchequer of building, acquiring, or leasing these 35,000 units is estimated over the period to 2020 to be € 3.8 billion. Significant Exchequer funding is being allocated to ensure that the early phases of the Strategy will be delivered.

The total targeted provision of over 110,000 social housing units, through the delivery of 35,000 new social housing units and meeting the housing needs of some 75,000 households through the Housing Assistance Payment (HAP) and Rental Accommodation Scheme (RAS), will address the needs of the 90,000 households on the housing waiting list in full, with flexibility to meet potential future demand.

Under the Governance arrangements outlined in the Strategy the Dublin Social Housing Delivery Task Force has been established to oversee and drive implementation across Dublin local authorities. All Dublin local authority chief executives are members of the Task Force, which reports directly to the Oversight Group that I chair.

Target-setting on an individual local authority by local authority basis is well underway, and will be concluded by the end of Quarter 1 2015, in accordance with the timeline set out in the Strategy. In this regard, letters have issued to each local authority, from my Department, seeking delivery proposals, across all delivery mechanisms, for the years 2015 to 2017 and returns are currently being received and collated.

With regard to overall national delivery targets for 2015, I expect that some 7, 400 new social housing units will be provided, broken down as follows:

- 1,400 units to be built or acquired by local authorities and approved housing bodies;

- 3,000 units under the Social Housing Leasing Initiative;

- 1,000 vacant local authority units will be returned to use; and

- 2,000 new Rental Accommodation Scheme (RAS) units.

In addition, a further 8,400 households will be assisted through the Housing Assistance Payment (HAP). Total housing provision for 2015 will result in an investment of almost €800 million across a range of housing programmes.

The precise details of the delivery will be agreed on a local authority by local authority basis, including in relation to the Dublin local authorities, in the coming weeks.

Social Inclusion and Community Activation Programme

Ceisteanna (239)

Terence Flanagan

Ceist:

239. Deputy Terence Flanagan asked the Minister for the Environment, Community and Local Government his views on local partnership amalgamations (details supplied); and if he will make a statement on the matter. [8709/15]

Amharc ar fhreagra

Freagraí scríofa

I assume the Question refers to my Department’s Social Inclusion and Community Activation Programme (SICAP). My Department’s Local and Community Development Programme (LCDP) superseded the Local Development Social Inclusion and the Community Development Programmes in 2010. LCDP is the largest social inclusion intervention of its kind in the State and is being implemented on a transitional basis until the end of March 2015, pending the roll out of the new Social Inclusion and Community Activation Programme (SICAP) on 1 April 2015. In accordance with the Public Spending Code, legal advice, good practice internationally and in order to ensure the optimum delivery of services to clients, SICAP is subject to a public procurement process, which is in its final stages. The results of the tender process will be released shortly.

The public procurement process is a competitive process that was open to Local Development Companies, other not-for-profit community groups, commercial firms and national organisations that can provide the services to be tendered for to deliver the new Programme. In Stage one, joint applications were encouraged and organisations of varying sizes (for example smaller organisations working in consortia with larger organisations) were invited to submit joint applications. The closing date for receipt of tenders under stage two was noon on 19 December 2014. The tenders received are currently being evaluated by the Local Community Development Committees in each area, and tenderers will be informed of the outcome shortly.

My Department is not aware of any planned partnership amalgamations. However, it should be noted that LDCs are independent companies, limited by guarantee. My Department has no role in the internal operations of LDCs and, therefore, does not have a role in relation to staff or employment matters, which are for the Board of the company, as the employer, to manage. Each funding Department is responsible for its own funding and contractual arrangements with the LDCs.

I am satisfied that the procurement process, which is nearing completion, is in line with good practice and I look forward to the commencement and roll out of SICAP on 1 April 2015. In the meantime, all groups who received LCDP funding in 2014 are being funded through LCDP interim arrangements until 31 March next, pending the outcome of the competitive process.

Litter Pollution

Ceisteanna (240)

Terence Flanagan

Ceist:

240. Deputy Terence Flanagan asked the Minister for the Environment, Community and Local Government if consideration has been given to a matter (details supplied) regarding dog fouling; and if he will make a statement on the matter. [8716/15]

Amharc ar fhreagra

Freagraí scríofa

The Litter Pollution Acts 1997 to 2009 provide the statutory framework to combat littering and include provisions relating to dog fouling.  Under the Acts, the primary management and enforcement response to littering, including dog fouling, is a matter for local authorities. It is a matter for each local authority to determine the most appropriate course of action to tackle litter pollution within the legislation provided. Each local authority can tailor its response to the issue, taking account of its own local circumstances and priorities. It is a matter for them to decide the most appropriate public awareness, enforcement and clean-up actions in relation to litter and dog fouling, including the authorising of litter wardens as they see fit. Section 16 of the Control of Dogs Act 1986 sets out the powers of dog wardens. In addition, section 28 of the Litter Pollution Act 1997, provides that a dog warden, within the meaning of the Control of Dogs Act 1986, may issue a notice or on-the-spot fine to an individual believed of committing a prescribed offence under the Act.

It is also open to a member of An Garda Síochána or a litter warden under the Litter Pollution Acts 1997-2009 to issue a notice where an offence is believed to have been committed. Local Authority Performance Indicators, including those pertaining to litter enforcement, are available at: http://www.lgma.ie/en/search/node/service%20indicators.

I am of the view that there are sufficient penalties in place and that adequate powers are available to appropriate personnel to deal with the issue of dog fouling when enforced under the Litter Pollution Acts and I have no plans to introduce further legislation at this time.

I believe that raising awareness of the litter problem and educating our young people is key to effecting a long-term change in society’s attitudes towards litter disposal but, ultimately, it is the responsibility of each individual to ensure that they play their part in preserving the environment for others through the responsible disposal of their litter, including in relation to dog fouling.

Electricity Generation

Ceisteanna (241)

Michael Moynihan

Ceist:

241. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources if he has examined converting the coal fired power station at Moneypoint, County Clare, into a biomass energy power station; if it has been costed. [8535/15]

Amharc ar fhreagra

Freagraí scríofa

The 2009 EU Renewable Energy Directive set Ireland a legally binding target of meeting 16% of our energy requirements from renewable sources by 2020, to be achieved through 40% renewables in electricity, 12% in heat and 10% in transport. Currently the Renewable Energy Feed-in Tariff schemes are the primary means through which electricity from renewable sources is supported in Ireland. These schemes support electricity generated from a range of renewable sources and are paid for by electricity customers through the Public Service Obligation (PSO) levy.

The choice of renewable energy technology is, however, ultimately a commercial decision for individual project developers and the fuel used in the plant at Moneypoint is a matter for the operator. I am advised, however, that there are a number of important issues that would demand further consideration before biomass could be used at Moneypoint. These include the following:

- the conversion of Moneypoint to biomass would require significant levels of capital investment by the operator;

- support tariffs substantially higher than those available for wind, which has been the most cost effective renewable technology in the Irish electricity market, would be required which would lead to increased electricity prices;

- substantially more biomass than is available domestically would be required with large amounts of the resource having to be imported leading to uncertainty in terms of security of supply. The sustainability of transporting large amounts of imported biomass would require consideration; and

- the commitment of substantial amounts of biomass to Moneypoint would divert scarce biomass away from the renewable heat sector, where biomass can be used more efficiently and where fewer alternative technologies exist.

Energy Policy

Ceisteanna (242)

Michael Moynihan

Ceist:

242. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources if biomass will form part of future Government energy policy. [8536/15]

Amharc ar fhreagra

Freagraí scríofa

In 2013, 7.8% of Ireland’s overall energy requirements were met from renewable sources, with energy from biomass accounting for 3.2%. Energy from biomass is expected to contribute up to half of the 2020 renewable energy targets, both here and in the EU as a whole. I published a Draft Bioenergy Plan in October 2014 which will undergo Strategic Environmental and Appropriate Assessments to inform the content of the finalised Plan. These assessment processes will commence shortly. The draft Plan sets out the broader context for the development of Ireland’s biomass sector, and the current status with regard to the range of policy areas that must be coordinated in order to create the conditions necessary to support the development of this sector.

The draft Plan recommends the continuation of the REFIT schemes and the Biofuels Obligation Scheme, which currently support energy from biomass. Furthermore, the analysis underpinning the draft Plan is that an additional bioenergy focused measure in the heat sector represents the most cost effective means of meeting a number of different policy goals. Therefore, the plan also recommends the introduction of a Renewable Heat Incentive (RHI) for larger heat users to change to heating solutions that produce heat from renewable sources. The RHI scheme, once designed, will require State Aid approval from the European Commission and further Government approval. It is proposed to have the scheme in place next year.

The draft Plan also contains measures to stimulate and support the supply of Irish biomass. In this regard, the key recommendations include: the continued support for the Afforestation Programme; the continuation of the Bioenergy Scheme for energy crops; and the establishment of Bioenergy Ireland, a joint venture between Bord na Móna and Coillte.

Furthermore, in terms of developing new sources of biomass, the draft Plan provides that the Department of Environment, Community and Local Government would endeavour to optimise the availability of waste for energy and that the Department of Agriculture, Food and the Marine would continue its support for innovative energy uses for animal by-products.

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