Skip to main content
Normal View

Dáil Éireann debate -
Tuesday, 10 Feb 2009

Vol. 674 No. 1

Priority Questions.

Energy Prices.

Simon Coveney

Question:

76 Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources the way he will proceed with an energy price review through the Commission for Energy Regulation, CER; the timescale for the review announced in February 2009; and if he will make a statement on the matter. [4855/09]

Liz McManus

Question:

77 Deputy Liz McManus asked the Minister for Communications, Energy and Natural Resources when the energy regulator’s decision to reduce the price of electricity by a two-digit number will be made; if he will ensure that a price ceiling be set rather than a price fixed; the other changes he will make to ensure that energy prices are reduced in the interests of competitiveness here and to help ameliorate fuel poverty; and if he will make a statement on the matter. [5060/09]

I propose to take Questions Nos. 76 and 77 together.

Encouraging a competitive energy supply is a key policy objective for the Government. Rising energy costs are a major concern for all sectors of the economy and for consumers. The regulation of ESB customer supply electricity tariffs and BGE gas tariffs is the statutory responsibility of the Commission for Energy Regulation, CER, under the Electricity Regulation Act 1999 and the Gas (Interim) Regulation Act 2002.

I welcome that the CER announced on 1 December 2008 there would be no further increase in the price of gas from January 2009 and that there would be a small average decrease from that month of just less than 1% in the price of electricity supplied by ESB Customer Supply. This decision is reflective of recent easing in international fossil fuel prices. I also welcome the substantial rebate of about €400 million being provided by ESB to all electricity customers, irrespective of their supplier, which has helped to stabilise electricity prices for 2009.

The two-phase approach to tariff regulation adopted by the CER last year resulted in price increases in the Irish market which were lower than those in some of our neighbouring markets. In Great Britain, for example, independent suppliers increased electricity tariffs by more than 26% on average, and gas tariffs by more than 40% on average in 2008, in response to increasing fossil fuel prices. By contrast, regulated tariffs in Ireland increased by an average of 17.5% in the case of electricity and 20% in the case of gas. In taking this phased approach, the CER took account of the difficult economic situation and the impact of price increases on business and consumers, including vulnerable customers.

The CER has previously demonstrated an ability to adapt its tariff regulation process in line with evolving market conditions. I note, for example, the CER decision to end tariff regulation for large electricity users in 2006, based on its conclusion that there is a sufficient level of competition in this market. The majority of large industrial and commercial electricity customers are currently supplied by independent suppliers. Many of these large industrial consumers are on fuel variation tariffs and have already experienced the benefits of falling gas prices.

The CER is required to ensure that regulated tariffs are cost reflective. However, I believe it may be possible to lower energy costs to consumers in a non-distortionary fashion, through an expedited review of tariffs. To achieve this, I have asked the energy regulator to undertake an immediate review of options to bring forward a reduction in electricity prices. As I stated in this House last week, if current trends in energy prices, particularly gas, continue, I would expect a double-digit cut in electricity and gas prices to become a reality later this year.

I also expect that, in the context of this review, the CER will advise on additional non-discriminatory and pro-competition measures that may be taken to bring about reductions in energy prices in the short-term. The ESB rebate, which I mentioned earlier, demonstrates the type of imaginative solutions that can be developed when all parties work together to ensure the best outcome for energy consumers in Ireland. I expect the timeframe for implementation of any reductions to become clearer in the coming weeks as we develop a better understanding of these potential measures. The priority for the Government is to ensure that we act swiftly in the interests of energy consumers.

I agree with the Minister that it is important the Government acts swiftly in respect of these matters. The Minister was instructed by the Taoiseach to undertake an energy price review and he is acting on that. He has raised the bar somewhat by saying he expects a double-digit energy price reduction this year. Presumably, he is talking about households. What I and others wish to hear from him today is when we will see the short-term price review he spoke of today. How long must we wait for that?

Bord Gáis will launch a new product next week, supplying electricity to homes for prices that are 10% to 14% cheaper than those the ESB currently charges. How can that be? If that is the case — it is — does the Minister agree the regulated price for households is too high? Can we expect a double-digit reduction in the regulated price for households to feature in the short-term review he mentioned today?

Concerning the broader review of energy price regulation, can we expect the double-digit reduction in energy prices for the commercial-industrial sector? That sector is not subject to direct price regulation but is subject to the influence of regulation in terms of the regulated price set by the CER for both networks and supply. Both are services supplied by the ESB.

I confirm that what we are talking about, primarily, is the household sector. As I said earlier, unlike householders, since 2006 the large business consumers have operated in an unregulated market. Because of the nature of the contracts they have, these sectors are already seeing a double-digit reduction in prices, arising in particular from lower international gas prices. The immediate timeframe set out is for the regulator — who was asked to see whether that expected reduction can be brought forward — to come to Government within three or four weeks with a range of different options.

I refer to the debate we had here last week during Private Members' time. There are a number of options in this regard, each of which might have advantages and disadvantages. In my contribution I set out the disadvantage of a unilateral reduction from the ESB because of the effect it would have on competition. I also mentioned the disadvantage of repeating the generous act the ESB undertook last year in forgoing €300 million in its revenue stream and a further €100 million this year from the sale to Endesa. To transfer that across the market is not a satisfactory outcome because it could endanger some of the investments we want the ESB to make.

My preferred option, if it is possible in a non-distortionary manner that does not affect competition and investment plans, which is important, is to see whether the regulator can bring forward such reductions from the October date we expected. I was looking at the gas prices again this morning. If one looks forward for the next six months or year — and most of the contracts are done forward — the price of gas is sufficiently low for us to confidently expect a double digit price reduction. The exact month in which it occurs must be advised by the regulator. That is the timeframe within which we are working.

Bord Gáis must announce its plans. I will not pre-empt——

In which month can people expect a response from the Minister on whether electricity prices will be reduced?

First I want the regulator, in discussion with all the players, to come forward with options. I will not pre-empt that task it has been set.

I am asking for a timeframe.

The timeframe for that work is the next three to four weeks. The regulator will return to the Government with those options and we will make a call on it.

Does the Minister accept that his desultory approach to this is insufficient to the task? People's incomes are plummeting and their utility bills are soaring. I do not know how insulated the Minister is from the realities of life but I will give a couple of quick examples in case he is not aware. Sheila's bill was €250, now it is €323. Brendan runs a business. In 2002 the bill was €800. The equivalent bill now is over €3,000. Seán's bill was between €600 and €800; he was away for Christmas, yet his latest bill was €1,250. Eileen had no Christmas tree, yet her ESB bill went up by €25. That is what people live with. For the Minister to attend the House and refer to a range of options is an inadequate response to the daily experiences encountered by people.

When can people expect the two-digit reduction the Minister has promised Will he ensure there is a price ceiling rather than a fixed price to allow, at long last, for some good value for people who struggle with their bills? For too long we have seen competitiveness sacrificed on the altar of competition. Does the Minister recognise we have to open it up in a way that meets the needs of consumers? What will the Minister do to assist businesses that cannot compete?

We have one of the highest levels of energy bills in Europe and we are operating in an incredibly difficult economic climate. Does this not require urgency on the Minister's part to deal with this issue once and for all?

He is doing nothing about it.

At the centre of our energy policy is the interest of Irish householders and businesses, to ensure we can give them a secure, competitive and clean electricity supply. The policies we are following will do exactly that. We are not following competitive policies for the sake of some ideological reason but from the clear understanding that the introduction, particularly in recent weeks, of very large international utilities into this market will be the most important factor in continually driving down prices for the Irish householder and business community over the next year, five years and ten years. That will deliver them lower prices.

This is a crucial investment and development we must support and see through. We must not turn it upside-down by completely getting rid of a regulatory system that is in place and acts as a crucial piece of infrastructure in an electricity market.

Nobody is suggesting that.

Nobody is suggesting that.

This is my point and we are doing that. The process of examining the options is the correct choice. One should not rush into this like a headless chicken, slashing and demanding change. One should work through how to proceed in a way which maintains the various objectives and brings down prices consistently. A short-term decision could, in the long run, lead to higher electricity prices, which would be against the interests of Irish householders. That is why one is better to let the regulator work with the various companies involved in the area to come back with options from which the Government can make the call. That is our central policy objective and is the right approach in this area. It will bring down electricity prices. We know that is coming from the price of the raw materials. A proper, regulated and competitive market is the best way to extract every last cent of price reduction we can from the sector rather than making an initial decision that misses that opportunity.

Today the Minister said he will try to do something for householders who have high electricity bills but will invite options in three or four weeks' time. He is doing nothing for the businesses of the country which are overcharged for electricity. As a result, Ireland is an uncompetitive destination in terms of energy cost competitiveness. The Minister says he will continue as normal and we will stick with the energy regulation plan that has been there for the last ten years. No electricity cost adjustments will be made in response to a recession or as part of an economic recovery plan.

In these very bleak times the Taoiseach announced he would deal with energy prices and that the Minister would have an extraordinary review with the regulator. That means the Minister must show results. What he said today clearly indicates he is still stuck in a rut. He has not altered his position in the face of the economic climate and the personal difficulties people have, which should give him the sense of urgency that is required. When will people, at a time when they desperately need it, benefit from the two-digit price reduction the Minister and his Taoiseach have promised on behalf of the Government?

The energy policy we are following is the right policy to reduce prices and I will stick to that policy because it will deliver for the public.

By 2015 or 2020. That will do much for the recession.

It is the correct policy for us to build additional power plants in Cork, which the ESB and Bord Gáis are building. It is the correct policy for us to see companies such as Endesa spending €800 million developing existing plants so we can get them on stream.

Turn out the lights.

That will bring down prices.

It is a pricing problem.

The Deputies must understand the fundamental reasons why we have had high prices and recognise the policies we are pursuing are addressing that fundamental reason. That will be the best guarantee for the public that prices will be reduced.

I want to know what the Minister is doing for people now.

He did not even know when the ESB decided to spend an extra €20 million on salaries. He did not know it was happening until he read it in the newspaper. That is how on top of his brief he is.

The second main reason we have high prices is our dependence on fossil fuels. The consistent determination by my Department, the Government and I to switch away from that reliance will be the second best guarantee that prices will be reduced. The crucial third part of energy policy that one sticks to and gets right is having a fair and competitive regulatory system that will deliver lower prices.

The Minister should not preach.

Stick to the script.

The time for preaching is over. It is time for the Minister to do the business to keep people in business. If he does the business, people will stay in business.

I am confident that because we are following such a course, because international prices are reducing, we will see lower prices. That will be done in the proper fashion.

The Minister did not even keep an eye on salaries at the ESB. That shows the extent to which he is on top of his brief.

Alternative Energy Projects.

Simon Coveney

Question:

78 Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources the amount of the €26 million package announced in January 2008 in respect of ocean energy programmes which has been spent; the reason promised grant aid to companies has not been awarded; the further reason applications for grant aid were only sought as recently as November 2008; and if he will make a statement on the matter. [4856/09]

Approximately €1 million was spent on the ocean energy programme in 2008. The grant aid programme for companies is one element of a wide-ranging suite of initiatives intended to accelerate and strengthen the development of ocean energy technologies in Ireland. These are managed by the ocean energy development unit, which is located at Sustainable Energy Ireland, SEI.

The ocean energy grant aid programme for industry was launched publicly in August last. Responses were processed during September and October and full applications were sought during November. Agreement on funding levels in accordance with EU State aid rules is now being finalised and the first contracts will be issued in a matter of weeks. I am advised that the pace of expenditure will accelerate, increasing to around €7 million in 2009. This will contribute to the delivery of the Government's high priority goal of supporting the development of Ireland's ocean energy potential in a reasonable timeframe.

The ocean energy development unit was established last year within SEI. The unit manages the ocean energy strategy and administers the substantial funding provided for the benefit of researchers and project developers. The unit commenced the grant aid programme in its first year. It has also invested in the creation of a state-of-the-art national ocean energy facility at University College Cork, which work will continue into 2009. It is also managing the development of a grid-connected wave energy test site off the west coast. In addition, in the same period, the unit has established an advisory group comprising my Department, the Commission for Energy Regulation, the coastal zone management division, Enterprise Ireland, EirGrid, ESB Networks, IDA Ireland, the Marine Institute and Science Foundation Ireland to co-ordinate the activities of these agencies in developing and delivering an efficient roadmap for ocean energy. The unit has also commenced work on the delivery of studies of common interest to the sector, including a study on the engineering and specialist support requirements for the sector to enhance Ireland's capability to maximise participation in the construction and operation of wave and tidal systems; a review of the planning regime for ocean energy development; a strategic environmental assessment for ocean energy in Irish waters; an investigation of partnership with industry for data gathering and processing; and a detailed review of the macro-economic benefits that ocean energy can deliver for Ireland.

The delays in launching the grant aid programme have not diverted us from the ten-year development plan set out in our ocean energy strategy. These technologies are very much at research and development phases, and devices are using different approaches to try to generate electricity from the ocean. The ocean energy unit is working closely with developers to develop and finalise their project applications. I am satisfied that all components of the ocean energy package are now under way and are being advanced at a pace consistent with the priority the Government attaches to this area. I am confident this programme will greatly assist in realising Ireland's huge potential in this area and will allow us to meet the Government's target of generating 500 MW of ocean energy by 2020.

I thank the Minister for his reply. It was on 15 January 2008 that the Minister announced this initiative. He announced that €1 million would be spent on a world class, state-of-the-art national ocean energy facility at UCC in 2008, that €2 million would be spent in 2008 to support and develop a grid-connected wave energy site near Belmullet, and that €2 million in grant aid would be provided in 2008 under the ocean energy prototype fund for developers of this type of technology. How much of that €5 million was actually spent last year?

As already stated, approximately €1 million. Everyone would like to see all the money being spent. The primary reason it was not was the delay in setting up the ocean energy unit. This is a ten-year timeframe that was set out about three years ago in our ocean energy strategy. It was set out in four quarters, with the first quarter to be reviewed at the end of 2007. It was on that basis that we decided we would move to the next phase, just prior to commercialisation, in January. Crucial in this was the setting up of the ocean energy unit, and while I regret the delay, I feel we have set up the unit with the right people. This is a crucial development which will allow us to spend money this year and catch up. We need to catch up because this is an area in which there is major potential. While I regret the delay in setting up the unit and the consequent inability to spend the various budgets, I believe we have got the unit and the strategy right, and the money will be spent this year or next to allow us to catch up.

Can I confirm that the Minister is saying that because only €1 million was spent out of the €26 million fund last year due to delays, which may be understandable, we are spending €7 million in 2009 on this initiative? My understanding is that in 2010 we will be spending the remaining €18 million on funding ocean energy projects. Is that correct?

There will be no shortage in budget availability to meet the needs we have.

They are specific questions.

I am not going to forecast next year's budget, but the Government attaches the highest priority to this area and will not be found wanting when it comes to budget allocation.

The Minister announced that €26 million would be spent. Will it be spent?

It is not all about budget.

The Minister is all about announcements and not delivery. That is the problem.

It is not all about figures.

The Minister should say that to the companies.

One of the valuable things that has been done is the work of the Oireachtas Joint Committee on Communications, Energy and Natural Resources in examining the need for us to develop our ocean planning strategy, so we could get that right. It is probably the first and most crucial hurdle we need to overcome in the first half of this year so that companies that are investing significant moneys have real confidence in the planning system. Budgets are important, but——

Is the Minister committing a budget of €26 million over the next two years?

I am committing on behalf of the Government to giving this area the highest priority and to making the necessary funding available to deliver on the strategy we have set out.

I am sorry, but that is the usual bluff.

All commitments and no figures.

Electricity Generation.

Simon Coveney

Question:

79 Deputy Simon Coveney asked the Minister for Communications, Energy and Natural Resources the progress made on the roll-out of net meters here; the timescale for the availability of feed-in tariffs for micro-generation units selling electricity back to the grid; and if he will make a statement on the matter. [4857/09]

As well as providing valuable information for both the consumer and electricity supplier, net metering allows micro-scale renewable energy projects in domestic settings to export electricity to the grid. The typical electricity meter installed by the ESB in the past will not operate in reverse and cannot therefore support a net metering programme. The smart metering programme will resolve this barrier in time. However, I am examining alternative ways of integrating micro-scale renewable energy systems into the electricity grid as soon as possible.

An alternative approach is to provide a guaranteed price for electricity exported to the grid from micro-scale projects. The renewable energy feed-in tariff, REFIT, support scheme operated by my Department provides a fixed price to electricity producers. However, it also relies on electricity suppliers' voluntarily contracting with electricity producers to purchase the power produced. Suppliers have demonstrated in the past that their interest is in purchasing power from large-scale projects producing electricity in commercial quantities only. Micro-scale plants are of a much smaller size and require a different solution outside the REFIT programme.

My Department is currently working closely with the Commission for Energy Regulation and other stakeholders to put in place in the short term an appropriately structured payment system for micro-generated electricity exported to the grid, which will operate separately from the REFIT mechanism. In addition, Sustainable Energy Ireland is proposing a micro-generation pilot programme under which research and field trials will be conducted, including support for between 50 and 60 installations of micro-scale projects on a pilot basis. The field trials will address a range of issues, including grid connection and technical standards, to ensure the power security, safety and quality of installations. CER and ESB Networks have amended the rules associated with connecting micro-scale plants so that generators of less than 6 kW on single-phase cables and 11 kW on three-phase electricity supply cables can now connect to the grid without prior authorisation.

Following these changes, SEI has arranged to publish a guide to connecting renewable and combined heat and power electricity production plants to the electricity network, including advice for micro-generators, which will be of assistance to those connecting micro-scale plant to the network. In addition, revised planning guidelines from my colleague the Minister for the Environment, Heritage and Local Government establish an exemption from planning consent requirements for micro-scale projects of suitable height. Work is now concluding on the design of the programmes referred to and I expect to make an announcement on the detailed arrangements for micro-scale projects in the coming weeks.

I suspect I agree with the Minister when I say that micro-generation and the decentralisation of energy generation generally is a significant opportunity for job creation. The key element of this is the export tariff that people can get by supplying power from micro-generators back to the electricity grid. My understanding at the moment is that the proposition from the ESB is to pay 9 cent per kilowatt hour. This does not compare favourably to what is on offer in other parts of Europe. That is about as charitable as I can be. In France, the equivalent figure is 45 cent per kilowatt hour. We are a long way from agreement on the right tariff. Will the Minister give his view on whether the recent ESB proposed tariff is appropriate?

Second, the Minister is true to form with regard to net metering. In November 2007, he announced that 25,000 homes would have net meters installed in a pilot project, while in September 2008 he said it would be 21,000 customers. To date, how many smart meters have been installed and are functioning in homes? Am I correct that under the timeframe the Minister has set we will have to wait until February 2011 to get some feedback on the findings of the pilot project in net metering?

I agree with the Deputy. The 9 cent per kilowatt hour is there as an instrument to break the logjam that has existed for years whereby nobody would or could purchase the power. Part of the measures we want to put in an interim package is that there would be a further price support measure which would complement that to provide an incentive. It is just an interim measure. We have also commissioned very detailed analysis of each of the small micro generation sectors to consider the more long-term, sustainable approach to encourage the development of this generation system. The price we will put in will be an interim measure. It will provide a more significant price support than the 9 cent referred to but it is, in itself, only an interim measure.

We can examine Spain, Germany, France and the countries the Deputy mentioned to consider their experience. What one does not wish to do, which has happened in some of those countries, is set a very high price and then undermine the market by having to claw that back or bring it down. We must set an appropriate price that allows people, particularly dairy farmers, businesses and farms, to erect the windmills or other devices that would work very effectively in the Irish landscape and weather and give them an ability to sell on. That price is only a fraction of what I believe the proper support price should and will be.

Regarding net metering, I will refer back to the Deputy on the exact number of meters delivered to date, but we are on target for installing the 21,000 meters so we can test how householders use the meter and how it works. That is the right way to do this. People can criticise and say we should have installed 500,000 by now but my experience with a range of different projects in which we have engaged is that one first tests the item in the real world. It is not a small test; a total of 21,000 houses is a significant sample of the population. That will provide the figures and analysis that will allow us to deploy it across the country, which I am confident we will do.

I am confident that we are ahead of other countries. Members of the Opposition are critical that we are not further advanced but we are ahead of most other jurisdictions. Crucially, we are ahead in terms of learning from the mistakes. Other countries have installed smart meters but the meters were not necessarily as smart as they would have liked two or three years later. It is appropriate for us to get it right, and that is what we are doing.

My understanding, and the Minister can correct me if it is wrong, is that only 250 of the 21,000 have so far been installed. While I am anxious to support the roll-out of smart meters, as are many other people because it leads to other technologies, the problem is that we are utterly frustrated by how long each stage is taking before smart meters will be commercial after the pilot project phase. It will be 2012 or 2013 at the earliest.

In conjunction with the roll-out of micro-generation here, we will provide access to 4,000 of the smart meters we have available to farmers, small businesses or householders who might wish to generate their own power supply and sell it back to the grid. We will provide that on a basis that it gets rid of that as a block to the development of micro-generation. We are using the smart meters which are available to us and which we can deploy in a way that kills two birds with one stone — it develops a new power supply system whereby people can supply power to the grid and provides lessons that we can then apply to the rest of the country.

Natural Gas Grid.

Noel Coonan

Question:

80 Deputy Noel J. Coonan asked the Minister for Communications, Energy and Natural Resources the plans in place to extend the natural gas infrastructure in north Tipperary; the timescale for doing so; and if he will make a statement on the matter. [4858/09]

The development and expansion of the natural gas network is, in the first instance, a commercial matter for Bord Gáis Éireann, BGE, which is mandated under section 8 of the Gas Act 1976, as amended, to develop and maintain a system for the supply of natural gas that is both economical and efficient. The Commission for Energy Regulation, CER, which is a statutory, independent body, has, since 2002, been charged with all aspects of the assessment and licensing of prospective operators who wish to develop and-or operate a gas distribution system within the State under the Gas (Interim) (Regulation) Act 2002. I have no direct statutory function in the connection of towns to the gas network.

The CER in 2006 approved a new network connections policy, which created the opportunity to reassess the feasibility of connecting certain towns to the gas network. In order for any town to be connected to the gas network, certain economic criteria need to be satisfied as a prerequisite. This is to ensure that, over a certain period, the costs of connecting the town to the network are recouped through the actual consumption of gas and the associated tariffs. The policy allows for the appraisal of a town either on its own or as part of a regional group of towns.

In this context, BGE is carrying out a comprehensive assessment of towns not already connected to the national gas network. I am advised that Ballina and Newport in north Tipperary are already connected to the natural gas network. Nenagh, Roscrea and Thurles are included in a total of 42 towns being examined as part of phase three of this assessment, which is scheduled for completion in April this year. BGE's final report will outline which towns or groups of towns would be economically viable for connection, within the revised connection policy criteria. In the event that the appraisal indicates that Nenagh, Roscrea or Thurles are viable for connection, I am advised that it may be possible to assess additional towns in close proximity in that context.

I am disappointed that the Minister started his reply by stating he has no responsibility for this and that it is a commercial matter for Bord Gáis Éireann. Preliminary results from the analysis carried out by DKM indicate subvention from the State will be required to have gas delivered to the towns of Thurles, Nenagh and Roscrea. According to the report, a sum of €11 million will be required in the case of Thurles, but it is only €3 million if it is linked with Callan and Tipperary town or a cluster of towns.

The Minister should not hide behind Bord Gáis. The Government must put facilities in rural Ireland that facilitate job creation and competition and enable industry to thrive and prosper in those areas. Will the Minister's Department commit money under the national development plan to enable the IDA, which is promoting industry in the area, to put money into those schemes for towns such as Thurles, Nenagh and Roscrea? Will the Government rise to the occasion and ensure there is competitive infrastructure in rural areas like elsewhere in Ireland? Industries such as creameries and bakeries are at a disadvantage of possibly 30% when compared to similar industries in other counties that have the facility of natural gas. Will the Minister indicate that the Government is committed to supplying the funds to enable Bord Gáis, as it wishes and is prepared to do, to provide this infrastructure in north Tipperary?

I would be happy to see gas being provided to Tipperary, Thurles, Callan or any of the towns mentioned. However, we must revert to the discussion we had earlier. We must keep our electricity and energy prices low and competitive. It would be easy to come to this side of the House and take on responsibility for the allocation of infrastructure such as this if one could promise it left, right and centre and disregard the actual cost to the consumer at the end. If a grid was built to an area where there might not be an economic case for doing so, and I am not saying that is the case in any of those towns, it would put the price of gas and electricity up for every other town. Any Member of the Opposition would scream foul and point out that the gas prices were too high. That is why this issue is left within the regulatory system and Bord Gáis. It is not a political decision. It is better that it is done on an assessment of how to keep prices low as well as providing the obvious benefits of gas for manufacturing, bakeries and so forth. We cannot have it both ways. We cannot scream prices are too high and in the next breath scream that the grid must be built to a place where it might not be economical but might bring other benefits.

I do not accept the Minister's analogy. Infrastructure must be put in place to attract people and industry to an area. What was the cost of the 35 jobs that were lost in Taylor Made, Templemore, yesterday because of energy prices, following the 24 lost last December? That is a total of 59 job losses. What is the cost of that to the State?

I want to bring gas to those locations to bring the cost of energy down to help people keep their jobs. However, in doing so, one must be careful that one does not cause jobs to be lost in another town because the price of its gas connection is increased. There is a complex algorithm and a complex balancing act that must be done to meeting the economic objectives of having a wider gas network, at the same time keeping our gas prices low so that we hold on to the jobs we have.

We need equal treatment in rural Ireland. We do not want all the money spent within the Pale.

Top
Share