Darragh O'Brien: Targeted Energy Relief and Renewables Plan

Yeah, go raibh maith agat, Cathaoirleach, and thank you deputies for the opportunity to discuss the pressures Irish households are facing as a result of high energy costs and I've listened intently to the contributions that are here this evening. I want to assure deputies that the current crisis is of deep concern to this government and that's been articulated very well by government colleagues and indeed and to be fair by opposition colleagues here this evening and I know everyone shares the government's concern at the humanitarian impacts of this conflict and our desire as the deputy has said to see de-escalation. In addition to the significant humanitarian impacts we've also seen significant disruption and uncertainty that has resulted in global energy supply and impacting global energy supply and that of course has impacted us here in Ireland as it is with every other country. So this is not a matter that's unique to us. Energy prices and the impact which this has, most recent conflict has, had on them are of deep concern to me and to the broader government. Government understands the pressures and I want to assure people that families and businesses are under and I've engaged today again with the Taoiseach and Tanaiste on a government response to the areas with the that are under the most acute pressure. As the Taoiseach and Tanaiste have outlined this work will be finalized next week and we expect it to come to cabinet on Tuesday and that will set out the interventions that we will make in a targeted and time-bound way that will assist those who need it most and we've got to also be aware this situation is ever evolving. From the very outset of this conflict it's been very clear that it presents a very serious challenges and risks from an energy perspective and it was at my request last week that the energy security group met to assess the implications of the conflict in the Middle East and the Gulf region and to ensure that government is fully informed of ongoing developments in global energy markets. The group reviewed current supply and pricing conditions across oil, across gas and electricity and heard from the fuel industry representative body. It was noted that appropriate contingency arrangements are in place across the energy sector. I've also written to retail electricity and gas suppliers as well as to the crew and fuel suppliers to emphasize the importance of reducing the exposure for Irish consumers from price shocks that global uncertainty can and are creating and to ensure that Irish consumers are supported to the greatest possible extent throughout this uncertain period. Ireland does though colleagues face particular challenges in relation to energy costs as a result of long-standing factors including our isolated island location, low levels of interconnection, our population settlements and historic reliance on fossil fuels that is diminishing year on year. Specifically if I could in reference to fossil fuels I'm firmly of a belief that our island nation that we must continue to increase our renewable energy capacity to reduce the impact of fossil fuel prices and volatility on energy prices in Ireland. Last week actually we reached a very significant milestone of eight gigawatts of renewable energy and energy capacity installed in Ireland and we're already seeing the impact of renewables on prices and what energy renewables are producing and we must continue to accelerate that and I want to increase that by building more renewable capacity and indeed more storage. We've over one gigawatt of long duration battery storage as well that helps us to actually distribute the energy at the appropriate times and we will do more than that including the introduction of private wires, unprecedented investment in our grid up to 18.9 billion euro that will allow additional renewables and distribution of those renewables into our system and close collaboration indeed with all the sector. We need to see projects like the north-south interconnector built. We need to see that constructed. That in itself will bring average savings per household of over 100 euro per annum and it's critical that we do this. In addition we're investing a record amount in home retrofitting and also in business supports and I too like many government deputies and indeed many on the opposition would be completely opposed to removing the carbon tax and why do I say that? Because since 2019 the last government and this government have been able to provide 240,000 energy upgrades to homes and we're looking at savings of up to 1,100 euro permanent savings that are there and this year we're targeting 73,000 home upgrades this year. We've changed our grants. We've made them more accessible. They are critical to ensuring that households themselves can have reduced energy bills but are also more resilient to future shocks and I would ask deputies from Sinn Féin for looking at this year 558 million euro in exchequer funding is being provided to home energy supports to business supports indeed that directly comes from the carbon tax that is ring fenced for that. Where would you get the money or would you scrap the retrofit program? These are permanent savings that are here so I just think that that I like many in government and many of the opposition parties but but those as well that we have a system here now of carbon tax being able to be focused at those who need it most through things like the warmer home scheme 13,000 more fully funded home upgrades this year but that's something that we will continue to do and our job is to accelerate that to protect households and families right the way through future crises because the one thing that we're sure about is this will not be the last crisis so we've got to accelerate the deployment of renewables. We've got to continue to invest in our grid. We've got to continue to invest in retrofit but we also have to protect those who need our assistance and that's why it's been outlined very clearly by the Taoiseach just here this evening. The government will be bringing forward targeted time-bound measures that will help households and that will help businesses and that will be done next week and in a time-bound manner that we can actually keep this under review as hopefully as has been mentioned already that this crisis de-escalates and that we will see normalization of supplies. What I would say in relation to supplies we hold 90 days supply of stocks of oil in line with our international commitments and Nora who manage our state reserves are also committed through the IEA announcement of 400 million barrel release. Our equivalent is 1.6 million barrels and that contribution is approximately 10.5 days of supply. Look in relation to home heating oil prices unquestionably we're in an unusually exposed to increases because we are heavily reliant on kerosene for residential heating. Kerosene accounts for over 90 percent of home heating oil demand and about 30 percent of residential energy consumption so it is a real issue and Ireland is also the largest user of kerosene for home heating in Europe so that really points to the areas that we really need to assist people where we've seen significant increases in that and that also reflects the the nature of our dispersed population particularly in in rural areas so we import 80 to 90 percent of that kerosene mainly from from Britain and the EU but they themselves will be importing those supplies from the Middle East so there is a disruption there there is a there is a a price pressure there as well a price pressure there is there is there there is a price pressure there but but what but what we will do Deputy Doherty unlike Sinn Féin is that we will assess the situation which we have we will make sure the measures that we bring forward are targeted and are targeted to those who need it most and we will actually do that and what we need to do while we're doing that is ensure that we continue our retrofitting program to deliver permanent savings for households significant grants that are there to protect those households 240,000 so far and targeting another 72,000 this year by what Sinn Féin have said this evening and continually over the last few days that whole scheme would be scrapped because you wouldn't be able to fund it you wouldn't be able to fund it from anywhere else you've been 19 years as opposition finance spokesperson and I suggest there's a reason for that that you haven't been in government that you haven't actually been in government just relax a bit relax a bit this is this is this is a serious issue I think you have been 19 years in opposition that's the last time I checked but but get very excited when I promise I won't interrupt you even though I might feel like I should but people will make up their own mind on what you're saying look there are many people out there who are vulnerable at the moment government are committed to assisting them and we will bring forward targeted measures a number of measures across not just for households for but for the sector as well with that in mind I can hear like I I mess with the Irish road hauliers I'm meeting with them tomorrow morning I spoke with them at length uh last week as well there are pressures as well in relation to businesses and we need to we need to focus this all in the round and that is exactly what we will do and while we'll do that we need to actually protect investment in our energy system we need to protect our economy we need to protect ex check our funds as well deputy you cannot just make up uh financial resolutions on the back of an envelope and say that you will scrap uh support for households of up to six of up to of up to six of of of up to 600 million could I say as well uh Kehirle that the the um the energy affordability task force uh which has met and and on a number of occasions and brought forward preliminary reports in advance of the last budget where we made permanent reductions in relation to VAT down to nine percent we'll be meeting again uh tomorrow which I will be chairing we'll be looking at further measures that we will bring forward this year post this crisis done in a structured way done in a sustainable way deputy not done by way of a knee-jerk reaction to try to curry support in other areas we take this situation very very seriously and that's why we will approach this situation in a serious and in a structured manner and we will bring forward support next week for households and for businesses in a targeted structured and sustainable way so we can continue to invest in things like home retrofitting and things like support for small businesses that you would scrap