OVER A third of the Government’s 2009 budget for energy efficiency schemes was not spent, the Department of Energy has confirmed.

Minister for Energy Eamon Ryan admitted yesterday that some €35 million of the €95 million set aside for improved home insulation was returned to the Department of Finance.

The disclosure was made by Mr Ryan when being questioned by the Labour Party’s spokeswoman on energy Liz McManus at a meeting of the Oireachtas committee on energy and natural resources. A total of €55 million was spent last year, the Minister accepted.

“The admission by the Minister that his department has failed to spend up to €35 million on crucial energy efficiency projects is shocking,” she said.

“These energy efficiency schemes were put in place to help people insulate their homes and reduce their energy and put unemployed construction workers back to work.” She also said the National Retrofit Programme, announced in the budget last December with funds of €50 million, had yet to commence.

A spokeswoman for Mr Ryan said €15.7 million of the home insulation money had been carried over to this year and that the overall budget for 2010 had been increased to €105 million.

She said the insulation scheme was a new demand-led programme. “These kinds of schemes usually take time to build momentum. There is also the fact that there is a significant time lag in payments for insulation work.”