Written Answers Nos. 1-13
1. Deputy Michael Lowry asked the Tánaiste and Minister for Enterprise, Trade and Employment if he will share his Department's enterprise contingency plan in the event of decreasing levels of foreign direct investment in Ireland as a result of the implementation of the global and-or European minimum tax rate; and if he will make a statement on the matter. [34815/22]
Amharc ar fhreagra2021 was a record year for FDI in Ireland. IDA Ireland won 249 investments, increasing Ireland’s market share of investment into Europe in the face of global declines in FDI. The number of people directly employed in multinational companies in Ireland grew to over 275,000. FDI investment decisions were taken not only within the context of the OECD International Tax negotiations, but also during an uncertain environment due to Brexit and the COVID-19 pandemic. These results demonstrate Ireland’s continued attractiveness as an FDI destination.
Ireland’s signing of the OECD International Tax agreement in July 2021 provided stability to prospective and current multinational companies investing in Ireland. While the high-level agreement was reached in 2021, the specifics of how the new rules will operate in practice remain to be seen. IDA and its client companies are monitoring these international developments closely, and recent FDI investments would indicate that Ireland is still attractive to FDI investors. The corporation tax rate is only one aspect of Ireland’s value proposition to MNCs. Companies investing in Ireland also reap the benefits of a young and highly educated workforce, a business-friendly environment, a stable economic and political environment, Ireland’s commitment to European Union membership and access to the single market.
IDA Ireland report that globally, efforts to secure FDI are currently affected by issues such as disrupted global supply chains, increased energy costs and potential supply issues, increased construction and infrastructure costs - all issues which have been impacted by the pandemic and geopolitical events.
In order to provide an appropriate response to current economic and geopolitical challenges, in March Government agreed to the development of a White Paper on Enterprise Policy by the end of the year, led by my Department. The White Paper will set out an ambitious medium-to long-term direction for enterprise policy. In so doing, the White Paper will articulate what needs to be done differently to realise this vision and to set out clearly the risks to be faced, and the policy choices that will arise in order to maintain high-quality jobs, and to protect the elements, including FDI, which make Ireland’s economy globally attractive for investment.
2. Deputy Catherine Murphy asked the Tánaiste and Minister for Enterprise, Trade and Employment the grant aid and-or funding that is available to start-up enterprises and-or businesses that have ambition to establish a new mortgage company; and if his Department has funding streams that can assist start-ups to develop and conduct feasibility study in their business area of interest. [34832/22]
Amharc ar fhreagraThe Local Enterprise Offices act as a ‘First Stop Shop’ for business owners throughout the country providing advice and guidance, financial assistance, and offer a ‘signposting’ service for all government supports available.
The Local Enterprise Offices can offer direct grant aid to microenterprises (10 employees or fewer) in the manufacturing and internationally traded services sectors which, over time, have the potential to develop into strong export entities. However, it should be noted that the Local Enterprise Offices do not provide direct grant-aid to areas such as retail, personal services, local professional services, construction/local building services, as it may give rise to the displacement of existing businesses. Mortgage service provision enterprises would fall outside the scope of eligible businesses for grant aid under the Local Enterprise Office network.
The Local Enterprise Offices provide soft supports through a wide range of high-quality business and management development programmes that are tailored to meet specific business requirements. Whether it is a new start up or growing an existing business there is something suitable for anyone exploring self-employment as an option or for those who are currently operating a business. The Local Enterprise Offices offer free training and development programmes and mentoring and networking events.
3. Deputy Alan Dillon asked the Minister for the Environment, Climate and Communications the measures that are in place to help with energy costs. [34594/22]
Amharc ar fhreagraGovernment is acutely aware of the impact of rising energy prices on households. The most immediate factor affecting electricity prices in Ireland and Europe is high international gas prices where we are a price taker. Gas prices are now unprecedentedly high, which feeds directly through to retail electricity prices as the wholesale price of electricity correlates strongly with the price of gas.
Government has already taken action and 99% of domestic electricity accounts have now been credited with the Electricity Costs Emergency Benefit Payment of €176.22 (excl. VAT). The total cost of this scheme is c€380 million. This is in addition to the range of measures introduced on 10 February to address increasing costs of living, including the lump sum payment for people on the Fuel Allowance of €125, paid to recipients in March. Furthermore, a €320 million measure has been introduced to temporarily reduce excise duties on petrol, diesel and marked gas oil, which cut excise by 20c per litre of petrol and 15c per litre of diesel.
Government published the National Energy Security Framework detailing consumer supports and protections already in place and that are being enhanced including: - an additional €100 Fuel Allowance payment, - a new targeted €20 million scheme for the installation of Photo Voltaic (PV) panels for households that have a high reliance on electricity for medical reasons - a reduction in VAT from 13.5% to 9% on gas and electricity bills from the start of May until the end of October.
On June 14th Government announced a package of measures to secure electricity supplies including an indicative annual saving of €75 on household bills through a further reduction in the PSO levy.
4. Deputy Jennifer Carroll MacNeill asked the Minister for the Environment, Climate and Communications the correct application of the €200 energy grants to a rented property in cases in which there are submeters for each individual apartment within the property; and if he will make a statement on the matter. [34613/22]
Amharc ar fhreagra5. Deputy Mattie McGrath asked the Minister for the Environment, Climate and Communications the position in relation to the electricity credit scheme in cases in which multiple accounts are connected to the one ESBN meter and residents pay using a provider (details supplied); if the provider is entitled to pay just €100 to each account; and if he will make a statement on the matter. [34633/22]
Amharc ar fhreagraI propose to take Questions Nos. 4 and 5 together.
The Electricity Costs (Domestic Electricity Accounts) Emergency Measures Act 2022 established a scheme for the making in 2022, of a once-off Electricity Costs Emergency Benefit Payment to each domestic electricity account, having regard to the exceptional rise in energy prices.
The credit of €176.22 (excluding VAT) is being applied to all domestic electricity accounts through April, May and June, and includes prepay meters. The scheme is operated by the Distribution System Operator (ESB Networks) and electricity suppliers with oversight by the Commission for Regulation of Utilities.
This is an exceptional measure which uses the single eligibility criterion of an electricity meter point registration number (MPRN), to ensure payments to each domestic electricity account as early as possible this year, without any additional means testing. The payment is being applied to domestic electricity accounts i.e. those which are subject to distribution use of system charges at the rate for urban domestic customers (DG1) or the rate for rural domestic customers (DG2), as set out in section 1 of the Act.
As of 27 May 2022, 2,129,832 domestic electricity customers had been credited, with 1,845,142 of these customers having been notified via a line item on their bill or prepayment vend receipt. This means that 99% of all eligible customers had the credit applied to their account.
In cases where households are in rental accommodation and do not have an individual MPRN, where tenants have disputes relating to tenancies including any terms relating to electricity payments, these can be referred to the Residential Tenancies Board (RTB) for dispute resolution.
6. Deputy Richard Boyd Barrett asked the Minister for the Environment, Climate and Communications the way a family (details supplied) that is waiting for an ESB connection in order to be able to move back into their home can have this procedure expedited on health grounds; and if he will make a statement on the matter. [34705/22]
Amharc ar fhreagraThe management of connections to the electricity grid is a matter for EirGrid and ESB Networks under rules determined by the Commission for Regulation Utilities (CRU), which is an independent statutory body. This is an operational matter for the Management of ESB Networks and is therefore not a matter in which the Minister has a statutory function.
7. Deputy Matt Carthy asked the Minister for the Environment, Climate and Communications the annual costs associated with the work of the Climate Change Advisory Council to date; and if he will make a statement on the matter. [34744/22]
Amharc ar fhreagraThe Climate Change Advisory Council (CCAC) is an independent advisory body tasked with assessing and advising on how Ireland is making the transition to a low carbon, climate resilient and environmentally sustainable economy by 2050. It was established under the Climate Action and Low Carbon Development Act 2015. The CCAC works to provide contributions in critiquing, informing and shaping Ireland’s response to climate change. As part of this work, the CCAC provides regular reports regarding Ireland’s progress in achieving its national policy goals and greenhouse gas emissions targets agreed by the European Union.
The 2021 Climate Action and Low Carbon Development (Amendment) Act strengthened the role of the CCAC, tasking it with preparing and submitting proposed carbon budgets to the Minister of Environment, Climate and Communications for their consideration. To support this role CCAC has been expanded from eleven to fourteen members, and there are provisions that future appointments will provide for improved gender balance and a greater range of relevant expertise
As part of its work, the Council is responsible for proposing the carbon budget programme to assist the State in achieving its national climate objectives and greenhouse gas emissions targets agreed by the European Union.
The CCAC’s proposed carbon budget programme was published and submitted to my Department in October 2021. In December 2021, CCAC’s proposed budgets were laid before the Houses of the Oireachtas and were referred to the Joint Oireachtas Committee on Environment and Climate Action.
In February this year, Government approved the carbon budgets as proposed by the CCAC.
Funding is provided to the CCAC via the Environmental Protection Agency and since its establishment the following amounts have been paid to the CCAC.
|
- |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
|
Non-pay |
€99,145 |
€269,000 |
€227,393 |
€270,068 |
€590,534 |
€512,083 |
|
Salary Costs |
€343,877 |
€402,114 |
€358,164 |
€391,472 |
€386,812 |
€373,920 |
|
Totals |
€443,022 |
€671,114 |
€585,557 |
€661,540 |
€977,346 |
€886,003 |
8. Deputy Christopher O'Sullivan asked the Minister for the Environment, Climate and Communications when Ireland's long-term climate action strategy will be published as the Climate Action and Low Carbon Development Act 2021; and if he will make a statement on the matter. [34783/22]
Amharc ar fhreagraIreland’s Long-term Climate Action Strategy (LTS) is currently being finalised and will be submitted to the European Commission in the coming weeks.Ireland prepared a draft of the LTS in 2019 in line with the then climate ambition set out in Ireland’s Climate Action and Low Carbon Development Act 2015. However, with the Programme for Government commitment to substantially increase our climate ambition, including our 2050 objective, submission of Ireland’s draft LTS to the European Commission was paused to ensure it fully aligned with our enhanced climate ambition. In July 2021, Ireland’s Climate Action and Low Carbon Development (Amendment) Act 2021 was enacted giving legal effect to a 2050 climate neutrality target. The Act also provides for a 51% reduction in greenhouse gases by 2030, compared to 2018 levels, and puts in place a rigorous governance structure, including a requirement for Government to prepare a National Long-term Climate Action Strategy at least once every five-years. As we finalise Ireland’s LTS, we are ensuring that the ambition aligns with our recently legislated for national climate targets, as well as making a strong contribution to the overall EU ambition of achieving climate neutrality by 2050 and achieving an interim reduction in overall EU greenhouse gas emissions of 55% by 2030, compared to 1990 levels. Similarly, the LTS will support our commitment to the international objective of limiting global warming to 1.5°C relative to pre-industrial levels, as established under the Paris Climate Agreement, and recently reaffirmed in the Glasgow Climate Pact. Ireland, as one of five Member States still to submit its Long-term Climate Strategy, has continued to engage with the European Commission on this issue, and has fully appraised the Commission of the approach as set out above.
9. Deputy Christopher O'Sullivan asked the Minister for the Environment, Climate and Communications the status of the review of Ireland's energy poverty strategy; when the review will be published; and if he will make a statement on the matter. [34784/22]
Amharc ar fhreagraEnergy poverty, or fuel poverty is influenced by a person’s income, the energy efficiency of their home, and the cost of the energy they use in their home. The ESRI recently published analysis which indicates that, following the recent sharp increases in energy prices, the share of households that could be at risk of energy poverty has risen to 29.4%. Lower income households living in inefficient homes are more at risk of energy poverty when energy prices increase, as the proportion of their income needed to meet their energy needs increases. The Government has put a range of policies and measures in place to support households that are at risk of energy poverty. These measures supplement lower income households through the Fuel Allowance, the Household Benefits Package and other payments, as well as providing free energy efficiency upgrades through the Sustainable Energy Authority of Ireland schemes and the Social Housing retrofitting programme. This year, 58% (€203 million) of the total Government retrofit budget of €352 million will be spent on dedicated energy poverty retrofit supports and local authority retrofits.
Recognising the unprecedented rise in energy prices facing people the Government put in place a number of additional measures earlier this year including:
- an increase in the weekly rate of the Fuel Allowance by €5 to €33 a week so that €914 was paid to eligible households over the course of the winter, an additional lump-sum payment of €125 was paid to the 370,000 households receiving the fuel allowance in mid-March;
- the Electricity Costs Emergency Benefit Payment of €176.22 (excl. VAT) credited to domestic electricity accounts;
- specific measures in the new National Retrofit Schemes to support householders in taking actions to reduce energy bills, including up to 80% grant funding for low-cost, high-impact measures such as attic insulation.
To further manage the impact of recent price increases the Government, in the recently published National Energy Security Framework, announced a number of additional measures for households and businesses including:
- a new targeted €20 million scheme for the installation of Photo Voltaic (PV) panels for households that have a high reliance on electricity for medical reasons;
- a package of measures to enhance protections for financially vulnerable customers and customers in debt in the electricity and gas sectors;
- a review of the price-drivers behind electricity and natural gas bills (including network costs) with a view to mitigating cost increases for consumers and businesses in the near term;
- the continuation of the excise duty reduction on petrol, diesel and marked gas oil until the Budget in October 2022;
- a reduction in VAT from 13.5% to 9% on gas and electricity bills from the start of May until the end of October;
- an additional payment of €100 for all recipients of the Fuel Allowance;
- the reduction to zero of the Public Service Obligation (PSO) levy on electricity bills.
In addition to the measures outlined above, electricity and gas suppliers, which are overseen by the Commission for Regulation of Utilities, have a range of protections against disconnections in place for consumers. In brief, priority customers cannot be disconnected, while vulnerable customers are protected over winter months from 1 November to 31 March each year. Additionally, under the supplier led voluntary Energy Engage Code, suppliers will not disconnect a customer who is engaging with them at any time. Accordingly, any customers who are experiencing difficulties with their Bills should engage with their supplier to discuss the various options and assistance available.
A research network on fuel poverty chaired by the Economic and Social Research Institute was established in 2021. The Group consists of representatives from my Department, the Department of Social Protection, the Sustainable Energy Authority of Ireland and the Central Statistics Office. The Group has commenced examination of the data and metrics needed to improve existing measures for fuel poverty in Ireland. The main goal is to provide insights that enhance policy design to protect vulnerable households. A work programme, proposed outputs and timelines will be agreed and finalised shortly.
A review of the implementation of the Strategy to Combat Energy Poverty will be completed in the coming weeks to inform future policy in this area.
10. Deputy Alan Dillon asked the Minister for the Environment, Climate and Communications if consideration will be given to an SEAI single-use grant application (details supplied); if there are plans to change these rules; and if he will make a statement on the matter. [34794/22]
Amharc ar fhreagraEarlier this year, the Government approved a package of supports as part of the delivery of Ireland’s residential retrofit programme. These measures are aimed at making it easier and more affordable for homeowners to undertake home energy upgrades, for warmer, healthier and more comfortable homes, with lower energy bills and lower emissions.
Included in these measures is the establishment of the new National Home Energy Upgrade Scheme, offering increased and very generous grant levels of up to 50% of the cost of a typical B2 home energy upgrade with a heat pump (up from the current level of 30-35%). The Scheme introduces a new way to undertake home energy upgrades with One-Stop-Shops providing an end-to-end service for homeowners. This includes surveying the home; designing the upgrades; managing the grant process; helping with access to finance; engaging contractors to deliver the work; and quality assuring the work. Homes, built and occupied pre-2011, and owned by private homeowners, non-corporate landlords and Approved Housing Bodies are eligible for the scheme. This provides an unprecedented opportunity for people all over Ireland to upgrade to a warmer, healthier and more comfortable home, with lower energy bills. In addition, Government have been clear that it is important that households that want to undertake a deep retrofit but do not have the financial means to carry out the upgrade in a single project, should be supported at the enhanced grant levels. For that reason, many of the new higher grant rates are also now available under the Better Energy Homes Scheme allowing homeowners to take a step-by-step approach or self-manage the project. The One Stop Shops can support homeowners under either scheme. Window and door replacements are available under the National Home Energy Upgrade Scheme, as well as under the Community Energy Grant scheme, as part of a whole house upgrade solution, as required, to achieve an energy efficient home to B2. Window and door replacement are also available in some circumstances under the Better Energy Warmer Homes Scheme which delivers free upgrades to eligible homeowners in low income households vulnerable to energy poverty. Window and door replacements are not supported under the Better Energy Homes Scheme, where homeowners can choose to carry out works on a step by step, and/or, self-managed basis. There are no plans at present to change this policy.
11. Deputy Mary Lou McDonald asked the Minister for the Environment, Climate and Communications if his Department has plans to deal with the issues facing residents under a district heating scheme (details supplied). [34796/22]
Amharc ar fhreagra12. Deputy Mary Lou McDonald asked the Minister for the Environment, Climate and Communications when the district heating steering group is expected to bring its report to Government. [34797/22]
Amharc ar fhreagraI propose to take Questions Nos. 11 and 12 together.
The Climate Action Plan 2021 contains actions that will provide a solid basis for the appropriate expansion of district heating in Ireland, including the establishment of a multi-disciplinary District Heating Steering Group. The District Heating Steering Group, which has met six times so far this year, is working towards recommendations around issues such as: robust governance; the optimum regulatory framework; organisational and structural designs and, legislative, in line with the requirements of the Renewable Energy Directive and the Energy Efficiency Directive. The considerations in this regard encompass pre-existing district heating and local heating schemes that are already in operation in Ireland. The recommendations of the Steering Group will be included in its Report to Government, scheduled for Q3 of this year.
Gas and electricity retail markets in Ireland operate within a European regulatory regime wherein electricity and gas markets are commercial, liberalised, and competitive. I am acutely aware of the impact that current, internationally influenced, energy price increases are having on people and families. For that reason, Government has put in place a series of measures to help alleviate the impact, particularly on lower income households.
The 2018 Renewable Energy Directive includes, inter alia, provisions concerning use of unavoidable waste heat when planning district heating and provisions requiring Member States to facilitate the development of heating and cooling derived from renewable sources. District heating, within a structured framework, is a technology that: offers the potential to diversify fuel supply used to heat the building sector; can offer flexibility in fuel choice; and the ability to adapt to changes in the economic and policy landscape.
13. Deputy Darren O'Rourke asked the Minister for the Environment, Climate and Communications the measures he is taking to ensure gas, liquid and solid fuel supply for winter 2022 in view of ongoing and expected supply challenges; the extent to which his and other Departments are engaged in these efforts; the extent of European and international co-operation; and if he will make a statement on the matter. [34888/22]
Amharc ar fhreagraThe European Commission’s RePowerEU Communication of 18 May 2022 sets out measures to end dependence on Russian energy, including: saving energy, diversifying supplies away from Russia, substituting fossil fuels by accelerating Europe’s clean energy transition, removing financial and regulatory barriers to rolling out needed infrastructure, and ensuring Member States have contingency plans to deal with any disruption in supplies from Russia. The European Council meeting of 30th and 31st of May 2022 called on the Council to rapidly examine the Commission proposals to deliver on the REPowerEU objectives and this work is ongoing.
The National Energy Security Framework, published in April 2022, provided a single overarching and initial response to address Ireland’s energy security needs in the context of the war in Ukraine. It coordinates work connected to energy security across the electricity, gas and oil sectors and sets out a ‘Whole-of Government’ response to the challenges posed to energy security and energy affordability.
Although Ireland is not as dependent on Russian gas as other Member States, it is important that we continue to be vigilant and cooperate closely with our European counterparts. In recent weeks Russia has disrupted supplies to an increasing number of EU Member States. Regularly tested emergency plans are in place which could be activated, if necessary, by Gas Networks Ireland - Ireland’s gas transmission system operator (TSO) and designated National Gas Emergency Manager. In addition, there are protocols in place between the UK and Ireland TSOs to deal manage gas supply emergencies
The short to medium term oil supply outlook is positive, with petroleum product availability having improved somewhat in the last few weeks and no major supply difficulties expected by industry in the immediate term. NORA (the National Oil Reserves Agency) currently holds approximately 85 days of oil stocks, the overwhelming majority of which is in the form of physical product, with approximately 85% stored on the island of Ireland.
