Minister for Communications, Energy and Natural Resources Eamon Ryan TD today announced his Department’s Supplementary Budget Estimates for 2009.
Minister Ryan established that his Department would make necessary savings across areas such as administrative costs and consultancy expenses. However, the Minister ensured that expenditure in those areas which are central to our economic renewal – energy and communications – will be maintained and in some instances increased.
Reflecting the importance of state investment in the green economy and in broadband, the revised 2009 allocation will represent a total increase of 7% on the 2008 outturn – from €486 to €520 million.
The increase relates primarily to the Home Energy Savings Scheme, the €50 million home insulation scheme which help reduce energy bills and carbon emissions as well as creating thousands of jobs. This scheme has proven enormously popular and has already secured 150 new jobs. The jobs, the investment and the cost reductions this guarantees for every householder will be maintained.
Over €7 million will be provided for a pilot project to equip Post-Primary schools with 100mbs broadband.
€7 million will also be allocated for the development of the prospectively lucrative Ocean Energy programme.
“This is a Budget, which befitting this Department has a clear eye on our economic future. The Government has identified the areas of renewable energy, energy efficiency and broadband as those which will see major expansion in the coming years. Expansion in Government activity and the attendant private spending and lending will replace the natural contractions in other areas of the economy.
The green economy will provide the jobs and investment of the future. The knowledge economy will be nothing without broadband. I am pleased that we were able to focus Government investment in these areas. Householders will see immediate benefits, the jobs market will see immediate new jobs in areas such as broadband delivery and insulation; international investors will look to Ireland as a country with a clear plan for its economic recovery. My Department is central to this recovery.”
Minister for State Seán Power TD said that “this Supplementary Budget represents our Government’s commitment to the economy of the future. A focus on expenditure meant that across Government we had to look at our programmes and identify where we get best value for money. My Department will continue to work towards maintaining our competitiveness, reducing business and consumer costs and securing our economic future. We will see the rewards right away and in years to come”.
ENDS
Note to editors:
Summary of Measures:
Key Investment:
Broadband to Schools
€7m has been allocated to fund a pilot scheme to deliver 100mbs broadband connectivity to post primary schools around the country.
National Insulation Programme for Economic Recovery
Home Energy Saving Scheme - €50m has been secured for insulation and energy efficiency works in private homes around Ireland.
Up to 30,000 homes will have works such as attic insulation or cavity wall insulation and boiler improvements carried out.
Energy Research Programmes
€12.675m will be established for energy research which includes €7m allocation for ocean energy research programmes. This will see progress on the establishment of a grid-connected test facility off the coast of Mayo. It will also fund grant assistance under the Ocean Energy Prototype Fund, among other measures.
RAPID Programme
€1.147m has been allocated for communications and technology initiatives for young people in disadvantaged communities.
Key Savings:
Administrative Costs
The overall allocation for administrative costs is down reflecting savings for 2009 mainly in respect of consultancy, procurement and the 8% reduction in professional fees.
The allocation for consultancy in the administration budget is down 27% on 2008 spending reflecting cuts in consultancy expenditure.
Energy Efficiency Awareness Initiatives
Spend on the “Power of One” awareness campaign has been significantly reduced (from €2.5m to €897,000) to achieve savings. It is felt that initial spend was required to promote the message of energy efficiency and that there have been substantial achievements in this regard.
Broadcasting
The allocation for TG4 allocation for 2009 is being reduced to approximately €36.133m. This sets TG4's funding for 2009 around its 2008 level.
It is anticipated that TV Licence Fee receipts may now be less than previously forecast and the estimate for the allocation to RTE in 2009 is being reduced to €205.2m. The actual outturn will depend on the number of licences sold.
ICT programmes
The allocation for ICT programmes has been reduced to €38.3m. This primarily reflects the completion of MANS Phase II.
Inland Fisheries
The allocation for Inland Fisheries has been reduced to approximately €38m 2009, primarily reflecting the winding down of the Salmon Conservation Scheme.