Vol. 427 No. 3
7 Mrs. T. Ahearn asked the Minister for Transport, Energy and Communications the effect his Department's energy policy will have on Exchequer expenditure and Exchequer revenue over the next three years; and if he will make a statement on the matter.
Apart from the cost of administering the Department, which formulates and co-ordinates energy policy, it is not expected that new initiatives in the energy area will represent any significant cost on the Exchequer. Likewise, it is not expected that there will be significant change in relation to the effect of energy policy on Exchequer revenue over the next three years.
In response to the Minister's reply in which he said he does not expect a change in costs to the Exchequer, may I ask him, in view of the proposal for a gas interconnector and in view of the application made by the ESB for a price increase, does the Minister then state that it is the consumer who will have to pay for any improvements in efficiency which will take place either in gas or the ESB? Can he give any assurance to consumers that they will not have to face exorbitant increases both in ESB and gas?
The gas interconnector or any other new initiatives for the purpose of electricity generation capital projects is not envisaged to be a cost on the Exchequer. The gas interconnector project is the responsibility of Bord Gáis Éireann. The ESB is responsible for providing new generating capacity. The position of the Government in regard to the new peat station proposals is that a feasibility study is being conducted and the matter of financing that project will depend on the results of the study. In relation to any proposed increases or applications for an increase from the ESB, I would point out to the Deputy that there have been reductions in the price of electricity during the past number of years as a result of the implementation of the ESB's energy policies. Any proposals that come to me will have to be based on improving the competitive position of the ESB. Despite the low density population in Ireland our electricity price is less than the Community average. Clearly, while there is no room for complacency, we will be seeking to drive those costs down at all times.
I am glad the Minister has given an assurance that the consumer will not have to face ESB increased charges and I hope he stands by it.
I did not say that.
He will have to face the Minister for Finance about VAT.
Let us have an orderly Question Time.
In view of the Minister's statement that there will be no change in Exchequer revenue can he say how he will replace the revenue he got from Bord Gáis Éireann which it will be unable to provide when paying for the gas interconnector? From what other means will he provide that revenue?
The Deputy is bringing in a lot of extraneous matter.
It is a separate question.
It is very relevant.
Clearly, Bord Gáis Éireann will not be in a position to have the same level of dividend which it has made in the past because it has to finance the cost of the gas interconnector. So far as the overall energy policy is concerned in terms of its implications for the Exchequer, we will have to make it up elsewhere.
Question No. 8, please.
A Cheann Comhairle——
Order. It has to be very brief, Deputy.
Has the Minister in mind where that extra revenue can be made up? It is a matter of great importance to the people.
It is a matter which relates to the central funds of the Exchequer. If we are down £15 million as a result of a dividend not being forthcoming in future years we will have to make up the difference in terms of the overall expenditure of the Government. It is simple.
Either the Minister's first answer was wrong or he is hiding something from us.
The Deputy is being mischievous.
Deputy Dukes ought not to intervene at this stage. Questions are confined solely to the Deputies who tabled priority questions. Question No. 8, please.
