I am not sure whether the Minister made reference to a point I raised when I was speaking here yesterday in regard to the ESB going into trading in electrical equipment. Do they make a profit on that? Is the profit used to bring down the costs otherwise? Does the Minister consider that the ESB are justified in competing with the private sector in this field? I am not raising this matter to be facetious but it is one of great concern to many people.
Electricity (Supply) (Amendment) Bill, 1974: Committee and Final Stages.
Bill put through Committee, reported without amendment and received for final consideration.
Question proposed: "That the Bill do now pass."
I understand that they did when the company was set up originally; they have grown tremendously since then. But now, when other electrical traders have entered the market, they are holding steady and making a profit of about 5 per cent which, of course, goes to the common pool and towards keeping the cost of electricity down.
The Minister will agree that 5 per cent is a very small profit.
Very small.
And yet private enterprise is able to compete with them.
This is not the gross profit; it is the net profit on their sales after expenses.
A trader in electrical equipment would like to have a better net profit than 5 per cent.
I am told that the ESB standard is much higher as regards service than other traders. This is the reason why the profit is so small.
This is the moot point in the whole question of the ESB trading. They are supposed to be a non-profit making concern. If they were able to keep the market, by their competition, down to the minimum one might say they were justifying their existence in trading as against the private sector but it does not seem to happen that way. My knowledge is that private enterprise in the retail business of electrical goods is more than able to compete with the ESB and make a better profit.
I accept that private enterprise are more than able to compete with the ESB and good luck to them. I think the ESB need competition in this regard. This is not an area where, like the generating of electricity they have or should have a monopoly. I agree that the more competition they have in the retail and service end of it much the better for them. Perhaps I would like to see the day coming when they might get out of the retailing altogether if there was a sufficient number of electrical contractors in competition with one another who would have the effect of keeping down the retail price of electrical appliances. I would like to see that day coming but I do not think it will come for a number of years.
Question put and agreed to.