Written Answers Nos. 123-131
123. Deputy Brendan Griffin asked the Minister for Arts, Heritage and the Gaeltacht if he will insert a new provision in the Official Languages Act to ensure that at least 10% of employees in the Civil Service can communicate with the public through Irish; and if he will make a statement on the matter. [27729/14]
View answer124. Deputy Brendan Griffin asked the Minister for Arts, Heritage and the Gaeltacht if he will insert a new provision in the Official Languages Act whereby services are made available in Irish for Gaeltacht communities before the end of 2016; and if he will make a statement on the matter. [27730/14]
View answerI propose to take Questions Nos. 123 and 124 together.
As I stated in my reply to Parliamentary Question No. 405 on 17 June 2014, following a review of the Official Languages Act 2003, my Department recently published the Heads of the Official Languages (Amendment) Bill 2014. Head 6 of the proposed Bill provides for an amendment to section 13 of the Act. This involves including a new subsection in section 13(2) stating that the posts within public bodies that require an Irish language competency be specified in language schemes. This amendment reflects the Government decision of 30 October 2013 to replace the practice of awarding bonus marks for Irish language proficiency in civil service recruitment and promotion competitions with a new competency-based system, the objective of which is to increase the cohort of functional bilinguals in the civil service. In addition, it should be noted that the workforce plans of Government Departments and Offices will in future specify the posts/areas of work which require staff that can function in both official languages. Having regard to the implementation of the Gaeltacht Act 2012, Departments will be asked to pay particular attention to posts that are located in, or that are serving, Gaeltacht areas.
I understand from the Minister for Public Expenditure and Reform that it had been intended to pilot the new arrangements in the upcoming Executive Officer (EO) recruitment competition. However, as priority is now being given to a Clerical Officer (CO) competition and the EO competition will not take place until later in the year, the new arrangements are being piloted in the CO competition which is currently being undertaken by the Public Appointments Service. It is proposed that a sub-panel of Irish language functional bilinguals, comprising up to 6% of the overall CO panel size, will be created. Successful candidates appointed from this panel must be able to provide a full range of services in Irish. I should also point out that, in accordance with section 13(d) of the Official Languages Act 2003, public bodies, when preparing their language schemes, are required to ensure that the particular Irish language requirements associated with the provision of services in Gaeltacht areas are met.
125. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources the potential tax returns to the State if the proposed changes to future oil and gas contracts were applied to existing contracts; and if he will make a statement on the matter. [27631/14]
View answerFirstly I should make clear that other than in the case of the 1959 agreement relating to the Kinsale Head gas field, the fiscal regime applying to oil and gas production in Ireland is set down in the Finance Acts and is not a matter of individual contracts. In March 2014 international sectoral experts Wood Mackenzie were engaged to provide independent expert advice on the “fitness-for-purpose” of Ireland’s fiscal terms, such advice to focus on what level of fiscal gain is achievable for the State and its citizens and, equally important, on the mechanisms best suited to produce such a gain.
Having received and considered Wood Mackenzie’s comprehensive and detailed report I sought agreement of the Government that Ireland’s oil and gas fiscal terms should be revised along the lines recommended. The Wood Mackenzie report was published on my Department’s website on 18 June 2014. The principal recommendations made by Wood Mackenzie are as follows:
- For now Ireland should maintain a concession system, with industry rather than the State bearing the risk associated with investing in exploration;
- Going forward a form of production profit tax should continue to apply in Ireland, but for discoveries made under future licences the form of this tax should be revised;
- The tax should be charged on a field-by-field basis with the rate varying according to the profitability of the field and charged on each field’s net profits;
- That the revised tax should include a minimum payment at a rate of 5% which would function like a royalty and would result in the State receiving a share of revenue in every year that a field is selling production;
- That the revised tax rates should be higher than the Profit Resource Rent Tax currently in place, thereby ensuring a higher share for the State from the most profitable fields. This would result in a maximum rate of 55% applying in the case of new licences, compared with a maximum rate of 40% under the current fiscal regime;
- That the corporation tax rate applying to petroleum production should remain at 25%; and
- there should be no retroactive change to the fiscal terms applying to existing exploration authorisations.
These recommendations flow from a comparative analysis between Ireland and nine other comparable hydrocarbon producing nations such as Newfoundland and Labrador, New Zealand, Spain and South Africa amongst others.
In setting out Government policy on this issue, it is my intention to communicate a clear message in relation to the stability of Ireland’s fiscal regime for the oil and gas exploration sector. For existing licences no changes are proposed and this is also consistent with the recommendation of the Joint Oireachtas Committee. For future prospective licence holders a clear regime is being set out and the rationale for that regime has been explained. This should further engender industry confidence in the stability and predictability of Ireland’s oil and gas fiscal terms and allow the industry to focus on effective and timely exploration effort.
Ireland has three producing gas fields namely the Kinsale, Ballycotton and Seven Heads fields off the coast of Cork. There is no commercial production of oil in the Irish offshore. The revenue generated for the State from the production from these gas fields is received in the form of rental fees, royalty payments (with the exception of the Seven Heads Gas field) and corporation tax. Profits from these three gas fields are taxed at a corporation rate of 25%. The direct financial return to the State from the Corrib gas field, which is expected to come into production in 2015, will be through the 25% corporation tax on profits.
The amount paid in taxation in respect of Ireland's producing gas fields is a matter between the companies concerned and the Revenue Commissioners and not one in respect of which I have a function. I can observe, however, that as one of the principal factors impacting on the level of taxable profits from a producing gas field is the wholesale price of gas, which is subject to significant movement over time, that attempting to accurately estimate future profitability over the life of any gas field, would be a challenging exercise.
In relation to the decision to revise the fiscal regime that will apply in the case of future exploration authorisations, the decision to revise the fiscal regime should be understood as a decision taken in the circumstances that currently prevail and should not be construed as suggesting that the regime now being introduced would have been appropriate at any particular juncture in the past. This in turn would suggest that a hypothetical comparison would be of no value
126. Deputy Colm Keaveney asked the Minister for Communications, Energy and Natural Resources if the scheme announced by him in Loughrea on 25 April 2014 (details supplied) will be extended to bring fibre-optic broadband to the townland of Cooleeny, Kilrickle, County Galway; and if he will make a statement on the matter. [27637/14]
View answerThe National Broadband Plan, which I published in August 2012, aims to radically change the broadband landscape in Ireland by ensuring that high speed broadband is available to all citizens and businesses. This will be achieved by providing:-a policy and regulatory framework that assists in accelerating and incentivising commercial investment; and a State-led intervention for areas where it is not commercial for the market to invest. Since publication of the Plan, investments by the commercial sector are underway and in some instances have been accelerated in both fixed line and wireless high speed broadband services. Commercial operators combined have either invested, or committed to invest, over €2 billion in their Irish networks, delivering high speed broadband to homes and businesses. As a result of this accelerated investment the addressable area required by the State-led intervention has been reduced by 30% since the National Broadband Plan was launched. While the commercial developments are welcome the acceleration of investment is largely contained to cities and towns. Consequently, the speeds that are available in these areas are demonstrably better than those that are available in more rural areas.
On 25 April last, I signalled the Government's commitment to a major telecommunications network build-out to rural Ireland, with fibre as the foundation of its investment, as part of the State-led intervention under the National Broadband Plan. This commitment is a clear expression of Government’s determination to address the connectivity challenge in rural Ireland in a meaningful and sustainable way. Central to the strategy will be a long term, future proofed infrastructure build with next generation backhaul infrastructure (likely to be primarily fibre based) as the key component underpinning whatever access technology delivers the service (fixed or wireless). This infrastructure build will extend to locations in every county in the State identified as having no existing or planned enabling fibre network. It will be part of an end-to-end strategy that will address all parts of Ireland that cannot access commercial high speed broadband services.
A comprehensive mapping exercise is underway in my Department which will identify those areas that will require a State intervention. I have published a county-by-county list of towns and villages which have already been identified for a fibre build-out. This list is available on my Department's website, www.dcenr.gov.ie. Currently, a total of 84 areas in County Galway have been identified as requiring an intervention. This is an indicative list and is subject to the completion of the mapping exercise. Further locations may be identified as this process continues. Similarly, it may be determined that some locations on the list will be addressed by the commercial sector and will therefore not require State intervention. I expect that this mapping exercise will be concluded in the autumn.
I would point out that the EU Commission’s guidelines on State aid for high speed broadband infrastructure preclude Member States from intervening in regions in which private investors have demonstrated plans to roll out their own infrastructure within the following three years. In this regard, I understand that at least one network operator has published a programme to roll out 57 fibre-based broadband networks in County Galway by July 2016.
In tandem with the completion of the mapping exercise, intensive design and planning work is ongoing in my Department with a view to producing a detailed end to end strategy for the State led intervention. It is my intention to conduct a full public consultation on the outcome of the mapping process and the proposed strategy. EU State aid clearance will also be required for the intervention once finalised. This will be followed by a detailed procurement process with a view to commencing construction of the fibre network and provision of services in identified areas as quickly as possible.
127. Deputy Terence Flanagan asked the Minister for Communications, Energy and Natural Resources in view of concerns that larger companies, for example, Electric Ireland, are offering energy services to customers at a reduced rate, thus underpricing small local companies, the regulations that are in place to ensure that smaller companies are not priced out of the market by larger national companies; and if he will make a statement on the matter. [27644/14]
View answerArticle 7 of the Energy Efficiency Directive obliges Member States to achieve energy savings each year from 1 January 2014 to 31 December 2020 of 1.5% of the annual energy sales to final customers. Ireland has chosen to partially meet the requirements of Article 7 via the imposition of an Energy Efficiency Obligation Scheme on energy suppliers. Earlier this year I introduced Statutory Instrument No. 131 of 2014 to give effect to the Energy Efficiency Obligation Scheme in Ireland. These Regulations require all energy suppliers above a certain threshold to deliver 550GWh of energy savings every year. Energy suppliers are free to choose the most effective and efficient means of meeting their obligation, be it through internal action or via the use of third parties active in the energy efficiency industry. It is my understanding that most energy suppliers are working with third parties to deliver energy saving solutions to their customers.
128. Deputy Brendan Griffin asked the Minister for Communications, Energy and Natural Resources if the lake at a location (details supplied) in County Kerry will be restocked, even if for just two months of the year, to help support local tourism, as it used to be stocked in the past; and if he will make a statement on the matter. [27676/14]
View answerI am advised by Inland Fisheries Ireland (IFI) that the lake in question, Lake Yganavan, is part of a Special Area of Conservation, (SAC no. 000370) and has not been previously stocked by IFI. I am also advised that as the lake in question is in a SAC and any actions there would require submission of a Nature Impact Statement to the Competent Authority, the National Parks & Wildlife Service (NPWS), and to IFI in relation to fish. For the information of the House, I should point out that the stocking of lakes that currently hold wild native stocks of fish even where numbers are limited, with fish of farm origin, would not be viewed as best practice where the protection of the diversity of the native populations would be a priority.
129. Deputy Martin Heydon asked the Minister for Communications, Energy and Natural Resources if he will provide an update on the work of the expert panel that was appointed to review the routes for the Grid Link project, with specific reference to considering underground routes; and if he will make a statement on the matter. [27763/14]
View answerThe Independent Expert Panel considering the Grid West and Grid Link projects has held five meetings between 10 February 2014 and 10 June 2014. At its meeting on 2 May 2014, the Panel finalised and approved the terms of reference for comprehensive, route specific studies and reports of fully undergrounded and overhead options for each of the Grid West and Grid Link projects, including assessments of potential environmental impacts, technical efficacy and cost factors. The terms of reference were published on 7 May 2014 and are available on my Department's website.
The studies and reports will be undertaken or commissioned by EirGrid in accordance with those terms of reference set by the Panel which will also oversee EirGrid’s study and reporting process. In due course, the Panel will provide an opinion to me on the completeness, objectivity and comparability of the studies and reports undertaken or commissioned by EirGrid and will oversee the publication by EirGrid of the two studies and reports prior to EirGrid proceeding to public consultation on the two projects. I also asked the Panel to consider what, if anything, it can do with regard to the North South Transmission Line project. Although the North South project was not covered by the Government’s decision concerning the appointment of the Panel, having discussed my request, and in the light of the finalised terms of reference for the studies of the Grid West and Grid Link projects, the Panel decided that it would provide an opinion to me on the compatibility of the methodologies to be employed on the Grid West and Grid Link projects with what has already been done on the North South Transmission Line project.
I understand that the Panel wrote to EirGrid shortly after its May meeting to convey its requirements in regard to Grid West, Grid Link and the North South project and that EirGrid is attending to those requirements. I am advised that EirGrid, in response to the Panel's enquiry regarding the compatibility of the methodologies, provided a detailed submission to the Panel. This submission was discussed by the Panel at its meeting on 10 June. I understand EirGrid made a detailed presentation at that meeting and that the Panel requested additional written material from EirGrid. The Panel will continue it work at its next meeting on 30 June 2014.
On 23 June 2014, the Panel welcomed the announcement by EirGrid of an underground route option for the Grid West project. EirGrid also announced a number of changes to the overhead route corridor and will now conduct public consultation on this underground route for Grid West and also the proposed amendments to the overhead route corridor, following which both the underground and overhead route options will be brought together into a single report which will be presented to the Panel so that it can review the options side by side, as per its Terms of Reference.
130. Deputy Brendan Griffin asked the Minister for Communications, Energy and Natural Resources if he will provide continuous multi-year annual funding for TG4 similar to that which RTÉ currently receives; and if he will make a statement on the matter. [27768/14]
View answerRTÉ is funded through both a Grant-In-Aid for a proportion of television licence fee receipts and through the commercial revenue it generates. TG4 is funded by way of a combination of direct exchequer Grant-In-Aid, television licence fee receipts and commercial revenue. Both Public Service Broadcasters are funded on an annual basis. In regard to the actual mechanism for helping to determine the level of the licence fee, this is set out in Section 124 of the Broadcasting Act 2009. In particular it allows for the Broadcasting Authority of Ireland (BAI) to recommend in a report to me, as Minister, an annual licence fee modification. This recommendation is based on an annual review of the extent to which both Public Service Broadcasters have fulfilled their commitments in respect of the public service objects stated in their annual statement of performance commitments for that financial year and the adequacy or otherwise of public funding to enable the corporations to meet those public service objects.
The recommendation from the Authority informs any decision I, as Minister, may take in conjunction with the Government on adjusting the current level of television fee or otherwise.
In addition to the statutory requirement for annual reviews of the public service broadcasters, Section 124(8) of the Broadcasting Act 2009 requires the BAI to also carry out a long term forward looking 5-year review on the adequacy or otherwise of the funding of public service broadcasters. The first 5 year review was undertaken by the BAI in 2013 and will assist in informing any policy decisions I may take on the future public funding of public service broadcasters.
131. Deputy Martin Heydon asked the Minister for Communications, Energy and Natural Resources if he will provide an update on the ongoing review of national energy policy; the timelines that are associated with the review; and if he will make a statement on the matter. [27772/14]
View answerI launched the public consultation process on the Green Paper on Energy Policy on 12 May 2014 when the Paper was published. It is open to anyone to submit their views electronically via a dedicated mailbox greenpaper@dcenr.gov.ie or in writing to the Department's address at 29-31 Adelaide Road, Dublin 2. A number of special topic seminars covering the six policy priorities will be organised over the coming months to assist in distilling views on how best to address challenges and opportunities so as to support the three pillars of sustainability, security and competitiveness.
The Green Paper on Energy Policy in Ireland provides an opportunity to reflect and take stock of the current energy landscape in Ireland and internationally and to adopt a long term approach with regard to the policy, regulatory and societal interventions Ireland needs to make in the coming years. Government, regulators, industry, system operators and the public will all need to make sound, evidence-based choices to support a flexible and fit for purpose energy system in Ireland to meet our current and future energy needs. I look forward to an informed and robust debate and encourage everyone to engage actively in the public consultation process, with a view to contributing to the development of Ireland's future energy policy framework.
