Topical Issue Debate

Bond Redemption

Deputy Peter Mathews

Next Wednesday, 25 January, is the due date for the redemption of a bond issued originally by Anglo Irish Bank Corporation, now the Irish Bank Resolution Corporation. We are at an important financial crossroads in the history of our country. Anglo Irish Bank has been insolvent and supported by financial engineering, promissory notes and the emergency liquidity assistance of the European Central Bank and funds from our Central Bank. The debt that lies embedded in what was Anglo Irish Bank was not created by the citizens of this country. It has been meted out onto their backs by a mixture of incompetence and mismeasurement over a certain period under the past Administration.

We are at a moral crossroads. We should bring to the attention of the creditors holding the bond the facts that the bank is insolvent and that, in effect, it is not a case of our not wanting to pay but of our not being able to do so. We can add dramatic emphasis to these facts by saying we honour our just debts. However, where debts are present that we have not the capacity to repay, we have got to explain the full story, which is not understood by the creditors, and state we cannot pay and that the bank is broke.

Consider the debt of €1.25 billion. The attention of the creditors will be in sharp focus because the banking system, the Irish-owned banks, are in debt to the ECB and our Central Bank at a level of approximately €150 billion. It is the forbearance and tolerance of citizens that keeps the financial edifice and engineering of the eurozone and the greater financial system of the developed world in place. We have been doing considerable work, facing enormous challenges. Through the great work of the Minister for Finance, Deputy Noonan, and the Taoiseach, we are bearing the load of trying to bring about a fiscal adjustment in line with the troika agreement signed in November 2010. All that work is important and must be done but the legacy debt is outside the responsibility of the people of this State.

One and a quarter billion euro is almost half the budget introduced in December. It is eight times the sum that will be raised from the household charge and twice that which will be raised by the VAT increase. The debt crisis in Ireland and other countries cannot be solved by adding more debt. I have recommend to Members of this House the book Endgame by John Mauldin, which explains how a debt crisis has developed over the past 15 years. Loading more debt on this country to pay legacy debt is like suggesting a drink problem can be solved by another whisky.

Minister for Finance (Deputy Michael Noonan)

I thank Deputy Mathews for raising this very important issue. The repayment of the bond in question is an obligation of the bank and will be repaid by the bank. It is important to be clear that it is the bank and not the Exchequer which will meet this obligation.

The Government has committed to ensuring that there is no forced or coerced involvement by the private sector burden sharing on Irish senior bank paper or Irish sovereign debt without the agreement of the ECB. This commitment has been agreed with our external partners and is the basis on which Ireland's future financing strategy is built. While the cost to the Irish taxpayer has been and will remain significant, the Government clearly recognises the need to work as part of the eurozone in order to ensure a return to the funding markets in the future. The only EU state where private sector involvement will apply is Greece. The following was agreed by all 27 member states at the euro summit last October:

15. As far as our general approach to private sector involvement in the euro area is concerned, we reiterate our decision taken on 21 July 2011 that Greece requires an exceptional and unique solution.

16. All other euro area Member States solemnly reaffirm their inflexible determination to honor fully their own individual sovereign signature and all their commitments to sustainable fiscal conditions and structural reforms. The euro area Heads of State or Government fully support this determination as the credibility of all their sovereign signatures is a decisive element for ensuring financial stability in the euro area as a whole.

This was agreed by the Heads of State and Government at their meeting in October, and Ireland was included in the 27 states that agreed to it.

It is not correct to state that only taxpayers have borne the burden of rescuing the Irish banks. Holders of equity in the banks have been effectively wiped out in burden sharing while holders of subordinated debt have incurred a €15.5 billion share of the burden to date, including €5.6 billion since this Government took office less than a year ago.

To impose burden sharing on senior bondholders, or to postpone the repayment of this bond at this point in time, is not in Ireland's best interest. What is in the Irish people's best interest is that we regain our financial independence and that we place ourselves in a position to re-enter the financial markets at the earliest possible date. Reputation, reliability and commitment are essential elements of this proposition and reneging on senior debt will not enhance the Irish position. The implementation of the programme is going well. We are working out of a very deep hole and we are making very real progress. We do not need to scupper our recovery, scupper the goodwill generated or alienate our partners by taking unilateral action which in the medium to long term will prove wholly counterproductive.

If we were to postpone or suspend payments to creditors of IBRC, this would have a significant impact on both the bank and, ultimately, the State. The senior debt, unsecured as it is, is an obligation of the bank. If the bank does not meet such an obligation, it would lead to a default and, following that, most likely insolvency. Insolvency would result in a very significant increase in the cost to the State to resolve the IBRC. In such circumstances, the State's negotiating position is, contrary to what is suggested, seriously weakened, if not wholly undermined. Further, the financial market's view of Ireland as a place to do business or invest would be seriously undermined.

We should also consider that the value of support, present and future, we receive from our European partners far outweighs any short-term gain from imposing burden sharing on these bonds in the face of European opposition to such a move. For example, €110 billion of funding is provided by the ECB and the Central Bank of Ireland to the Irish banks at a cost below which they could borrow in the market. This is in addition to the €85 billion set out in the programme with the troika. Nonetheless, let me state clearly that we still have unfinished business with our partners to find the most cost-effective way of resolving the IBRC over the long term. We will seek any and every opportunity to put Ireland's case forward to achieve the best possible outcome for the State.

In conclusion, as I have indicated, there is no private sector involvement for Irish senior bank paper or Irish sovereign debt without the agreement of our external partners. This commitment has been agreed with our external partners and is now the basis on which Ireland's future financing strategy is built. This, I strongly contend, represents the best approach which will achieve our re-entry to the financial markets.

Deputy Peter Mathews

While I will not get into a long debate, Greece will be the beneficiary of at least a 60% write-down of its debt obligations. The Greeks got the attention of their creditors by going out in the streets and having riots and by people being killed. We have knuckled down to correcting a fiscal imbalance and, at the same time, we have stayed silent. We have been straitjacketed by the legacy debt. Our loan losses in the banking system were €100 billion. While I know the shareholders and some of the subordinated bondholders suffered, the remaining losses were in the banks without being declared. The ECB stepped in to redeem bondholders to date, which was a mistake. We are compounding the mistake by going along the same route now.

We have got to be honest about it and open up the discussion. We are not defaulting; we are opening a discussion. I made the point that we cannot pay. I use the word "we" euphemistically or collectively in regard to the bank and the State. We cannot pay because of the guarantee that extends over the bank. It is a case of us lifting the telephone and asking, "Can we have your attention, please?" We cannot pay and we want to open a discussion and explain to exactly how the creditor liabilities of our banking system remain, and how they should be written down. There is further writing down to do. We have a €60 billion to €75 billion of write-down to organise and negotiate.

To use an analogy, we have a steeplechase race with about four miles to go. We have big jumps ahead. Normally, a steeplechase horse will start with about 12 stone on its back. Ireland's legacy debt of private debt, non-financial corporate debt and national debt when it peaks out at €120 billion is the equivalent of 24 stone on the back. It is not a possible race to run.

Deputy Michael Noonan

I do not disagree with Deputy Mathews' analysis. However, we are in a situation which we inherited from our predecessors, who entered into solemn and legally enforceable commitments in respect of Anglo Irish Bank, as it was then. Of course, Deputy Mathews is correct that we should do everything possible to reduce the debt burden on the taxpayers of Ireland and to enhance Ireland's capacity to repay its debts. We are working on that and making some progress.

Mortgage Arrears

Deputy Dessie Ellis

There are roughly 100,000 distressed mortgages in the State, with €1 billion in arrears owed. Some 8.1% or 62,970 mortgages are 90 days or more behind with payments. The average amount of the arrears is just over €17,000. There are 46,371 mortgages in arrears for over 180 days. The average arrears in these cases is approximately €21,000.

The director of FLAC said that the number of distressed mortgages has increased by 55% in the past year. People are in massive arrears and struggling to pay their mortgages. Many simply cannot. Local authority housing policy dictates that if a person voluntarily surrenders their home, they are not accepted as having a housing need and so are not placed on a housing list. Through this, they are barred from access to such services as the rental accommodation scheme, or RAS, rent supplement and voluntary housing.

This may make some sense in discouraging people who do not have a housing need from surrendering their home and clogging up the massive housing waiting lists when they can afford to pay their mortgages themselves. However, given the extraordinary situation for many mortgage holders, this means that in order to ensure they are deemed to have a housing need in the case of being unable to pay their mortgage, they are forced to have their home repossessed at a cost to the State through court time instead of giving up their home when it was obvious that their mortgage was untenable. This is not speculation; it is happening.

The Government needs to explore how it will deal with cases such as this, thereby avoiding court costs and not forcing people to go to court when they should be able to give up the home they cannot pay for and have a recognised housing need. Of course, this would have to be a delicate, measured approach so as not to encourage those who can pay to give up their debt in favour of social housing or rent supplement.

For many of these families, becoming homeless would be and has been a complete shock to their system and way of life. Families are also being forced to move away from areas where their roots have been established and their children have been placed in schools and creche. These are also being penalised with the result of further marginalisation and the problems it brings as well as the stresses it incurs. It is very important that the message is got out that due to financial hardship, people will not be abandoned or penalised. Local authorities should be instructed to examine each case and if it is established there is a genuine case, this impediment should be lifted.

The State has a both a moral and an ethical responsibility. A large number of 450,000 people in this category are unemployed through no fault of their own.

Families should not be penalised because of our economic woes and the Celtic tiger era pressure that forced many families and individuals to take out the unsustainable mortgages which are the bedrock of our problem today.

Minister of State at the Department of the Environment, Community and Local Government (Deputy Jan O’Sullivan)

I thank Deputy Ellis for raising this very important matter. I share, as does the Government, his concern about the many people in our society who are in difficulty with their mortgages.

The Government is acutely conscious of the difficulties many households are facing in terms of mortgage arrears. In October 2011 we published the report of the inter departmental working group on mortgage arrears which report, as Deputies are aware, was subsequently the subject of an extensive Dáil debate. There is no question of persons eligible for social housing being barred from local authority social housing lists. I wish to state that clearly.

The implementation of the report's recommendations is a key part of the Government's ongoing efforts to tackle mortgage difficulty. A steering group, chaired by the Department of Finance, has been established to oversee and drive the overall implementation of the report's recommendations and report regularly to the Economic Management Council and to Government on this. In addition to the Department of Finance, the steering group consists of senior representation from the Departments of the Environment, Community and Local Government, Justice and Equality, Social Protection and Public Expenditure and Reform. The Central Bank is also represented on the group.

Separate working groups have also been established to progress the individual work streams of this broad work area and these groups report to the overall steering group. Significant progress has already been achieved across a number of the individual work areas. The Minister for Justice and Equality will very shortly publish the heads of the personal insolvency Bill. On the issue of mortgage to rent, I have advanced work with a number of lenders and an approved housing body to pilot a scheme in order to test the practicalities associated with such a measure in advance of a wider roll-out. I reiterate to the Deputy there is good progress in this area.

Regarding engagement with the banks, the Central Bank, as the regulator of credit institutions, has now received mortgage arrears resolution strategies and implementation plans from all mortgage lenders and these are being considered. Work has commenced on the necessary steps to put in place the mortgage advisory function as recommended by the interdepartmental group. In addition, my Department had taken steps previously to take account of the critical interface between the Central Bank's mortgage arrears resolution process and the social housing needs assessment process. The previous situation, whereby a household in arrears effectively needed to be made homeless before a local authority could carry out an assessment of social housing need, clearly made little sense in our new economic circumstances.

New provisions under the social housing assessment amendment regulations, introduced in July 2011, now require a local authority, in determining a household's need for social housing support, to consider whether the household's mortgage has been deemed unsustainable under the mortgage arrears resolution process set out in the Central Bank's code of conduct on mortgage arrears. In effect, this means assessment of needs can be carried when there has been an assessment of the difficulties of the mortgagee.

Deputy Dessie Ellis

I thank the Minister of State. I am glad to hear we are considering these mortgages before people end up losing their homes. That is very important. However, the practice until lately, which varied in different local authorities and was a source of frustration, was to look at the situation at the very last minute, when people were virtually outside the door with the banks on their backs. That never made any sense. I am glad the Minister of State is looking at this.

We do not know the pressures people have been put under and the stresses that have been placed on them. These may have led to people attempting or actually committing suicide. I do not know this because there are no figures available but it has probably happened. It is extremely important, therefore, that we follow this up and do not put people under such pressure. We have enough problems in life.

I appreciate what the Minister of State has stated and look forward to seeing a resolution of this issue.

Deputy Jan O’Sullivan

The first advice, which is what we all give, is that people should engage with their lender as early as they can. Similarly, the lending institutions need to engage. I wish to be clear about that. We want local authorities to be proactive and to engage with people when they are in difficulties before they are at the point of being on the street, as the Deputy observed.

The new measures provide a means by which an authority can carry out a needs assessment at any time after a mortgage has been deemed to be unsustainable and before repossession proceedings have been instituted. Perhaps all local authorities need to be reminded about this area. Certainly the intention is that they would be proactive and would assess the difficulties a person has well in advance of repossession of the house.

Army Barracks

Deputy Nicky McFadden

I thank the Ceann Comhairle for allowing me the opportunity to speak, and the Minister for Justice and Equality, Deputy Alan Shatter, for attending the House. I raise the matter of the 4th Western Brigade of the Defence Forces, which is based at Custume Barracks, Athlone, where it continues to operate within the new Defence Forces structure.

Custume Barracks was established at the conclusion of the Jacobite war, when much of the town of Athlone was in ruins following the great siege of 1691. The barracks has always played a vital role in the community and continues to do so. The 4th Western Brigade includes the 6th Infantry Battalion, located in Custume Barracks and Cavan; the 1st Infantry Battalion in Galway; the 28th Infantry Battalion in Donegal; the 4th Field Engineers in Custume Barracks; the 4th Logistical Support Unit located in Custume Barracks; the 4th Cavalry Squadron, which relocated from Longford to Athlone; and the 4th Field Artillery Regiment, which will relocate from Mullingar to Athlone.

This year Custume Barracks will welcome more than 300 new troops as a result of the announcement in December that Columb Barracks in Mullingar and O'Neills Army Barracks in Cavan were to close. More than 170 troops from Mullingar and 130 troops from Cavan will move to the Athlone barracks which already accommodates approximately 900 troops. The closure of Columb Barracks in Mullingar came as a shock to the soldiers and their families. However, the Department has worked to ensure that the transfer to Athlone would be as smooth as possible and that there would be greater flexibility in the training and deployment of the whole Western Brigade.

There is growing concern in the constituency over the future status of Custume Barracks following the announcement that the Defence Forces is to lose one of its brigades, thereby moving from a three brigade structure to two brigades. The Minister has already given assurances that the restructuring will not include any further closures of Army barracks, which is welcome. However, the loss of brigade headquarter status in Athlone is still a major source of worry as it could result in the loss of certain specialised units.

I understand the Minister has requested the Chief of Staff and the Secretary General of the Department to produce a report on the reorganisation options for the Defence Forces. These recommendations are due at the end of the month. I fully accept that a reorganisation of the Defence Forces must take place in order to retain troop levels at a sustainable level and to release people in administration to the front line. However, although no decision has been reached, I urge the Minister, in the strongest terms possible, to ensure the 4th Western Brigade is retained as part of the new two brigade structure.

Minister for Justice and Equality (Deputy Alan Shatter)

I thank my colleague, Deputy McFadden, for raising an issue of great concern to her. The defence organisation has an enviable track record of reform and modernisation. During the past decade when public service expenditure and employment levels increased, defence expenditure declined in real terms and personnel numbers decreased. During this period Defence Forces' capabilities were also progressively improved and the Defence Forces have become partners of choice in international peace support operations. The Defence Forces continue to deliver a broad range of operational outputs on a day-to-day basis, many of which are not to the forefront of the public's awareness.

It is the Government's intention that the Defence Forces retain the capacity to fulfil all of the assigned roles to the greatest possible extent. Arising from the comprehensive review of expenditure, the Government has decided to maintain the strength of the Permanent Defence Forces at 9,500 personnel. This represents a reduction in the authorised strength ceiling and will contribute to the delivery of sustainable savings over the coming years.

In response to the revised strength ceiling of 9,500, a major reorganisation of the Defence Forces, including the Reserve Defence Force, has been initiated. This will encompass a reduction in the number of Army brigades from the current three to two. The primary focus of the reorganisation is to free up the maximum number of military personnel from administrative and support tasks. In short, the reorganisation is about maintaining operational outputs and capabilities to best effect within a reduced strength.

This task is a significant undertaking. It is one which will be regarded in years to come as a significant milestone in the history of the Defence Forces. A range of alternative approaches must be considered. I have asked the Chief of Staff and the Secretary General of the Department of Defence to bring forward detailed proposals for my consideration. This will include proposals regarding territorial areas of responsibility. It will also include proposals relating to the Reserve Defence Force which is currently organised along similar lines to the Permanent Defence Force.

I am aware that there will be many competing views as to the best way to reorganise the Defence Forces and this will evoke passionate debate. However, I have not issued directions to the chief of staff and the Secretary General, and I do not intend to do so at this stage, which will limit their scope to bring forward a range of options. The Deputy will appreciate that in advance of receipt and consideration of proposals from them, I will not be in a position to answer detailed questions. However, I can confirm that further barrack closures are not envisaged as part of this process. I also want to state clearly that there will be no loss of employment. Once again, I re-emphasise the Government's commitment to retain the strength of the Permanent Defence Force at existing levels.

The level of resourcing available to the Government over the coming years will present further challenges and every part of the public service will have to continue to deliver greater efficiencies. The preservation of the strength of the Permanent Defence Force at 9,500 personnel is a clear recognition by Government of the significant modernisation that has been achieved by the Defence organisation throughout the past decade. However, it is vital that we continue to strive for further improvements. The reorganisation of the Defence Forces is an integral element of this reform and will ensure that the Defence Forces maximise their operational outputs within the reduced resource envelope.

I look forward to working closely with the chief of staff and the Secretary General in furthering the re-organisation and the broader reform agenda. I hope this reform agenda will have the support of all sides of this House in the interests of the Defence Forces and in the interests of ensuring their operational capability and continued excellence in the manner in which they serve this State.

Deputy Nicky McFadden

That was a very disappointing answer. I understand the Minister needs to maintain the Defence Forces at 9,500 personnel but with so many new trips coming to the western brigade, I strongly urge him to consider holding on to it as the second brigade.

Deputy Alan Shatter

I would have hoped the Deputy would have regarded what I said as a hopeful answer for the future. We had a three brigade structure in the Defence Forces at a time when we had more than 15,000 troops. In the context of where we now stand with the number at 9,500, to ensure the maximum efficiencies, economies of scale and the delivery of service, it no longer makes any sense to retain a three brigade structure. The change to a two brigade structure involves a very considered overview of the best manner in which to proceed into the future and I want to be advised by the experts in this area, in particular the chief of staff and the Secretary General as to the options available. I have no wish to in any way interfere with or pre-empt that process but, ultimately, it will be a matter for decision. I am sure it will be a matter to be discussed into the future.

Based on the financial figures published by the previous Government in December 2010, the actual funding allocated to the Department of Defence and the plans of that Government, if it had remained in office, the Defence Forces, given the manner in which financial matters were being dealt with, could well have fallen to a figure below 8,000.

The manner in which this Government has proceeded to recalibrate financial issues which apply to the Department of Defence and the commitment of this Government have ensured that we maintain an annual number of 9,500 in the Defence Forces. That is based on multi-annual budgeting up to 2014. We have ensured the Defence Forces maintain a strength appropriate and necessary to their continuing to fulfil their international and domestic duties. In that context, the further reorganisation now taking place is in the interests of the Defence Forces and the country. I have no doubt that after I receive the report I have requested, we will return to this issue.

Gas Explosion

Deputy Catherine Murphy

I thank the Ceann Comhairle for selecting this topic and the Minister for coming in. I hope he will be able to respond in a constructive way to some of the points I want to make. While the gas explosion occurred in Leixlip, the town in which I live, I want to raise the issue in a wider context. Yesterday the Minister said approximately 640,000 households are connected to gas. Obviously, the safety of people whose homes are connected to and use gas is of paramount concern. I also wish a speedy recovery to one of the three people in the house in which the explosion occurred who was very seriously injured and is in hospital.

After I heard about the explosion on Saturday, I visited the area because not only are these people constituents but some of them are friends. The house in which the explosion occurred does not have gas central heating but oil fired central heating. The electricity went off at approximately 7 p.m. for a few minutes and an hour or an hour and half after that people smelled gas, Bord Gáis Éireann, BGE, was contacted and the people from BGE came out. There was a sizable gas leak so much so that it could be seen as steam rising to the height of a tree on the footpath. Gas was smelled by people on the road.

The house next door to that in which the explosion occurred has gas. The people from BGE came out, fixed the leak and left. I am not sure if the electricity went off at this stage but there seems to be a link between the electricity and gas. Gas does not respect property boundaries, so will seep into places. The house in which the explosion took place did not have gas central heating. It never occurred to them, therefore, that they would have to question whether the house was safe. A candle was lit and this ignited the gas in the house.

Many of the residents in the area were concerned that a wider check was not undertaken to test for the presence of gas in their houses and to evacuate some of them. The only action taken was to treat the gas leak and there is merit in their concern. I share their concerns that something more comprehensive should have have been done. I am sure the work was done by contractors for the gas company but it has overall responsibility. In advance of the completion of the inquiries into the explosion, which will determine the cause and which will take time, there is a wider issue about handling similar incidents if they arise in terms of the protocols around the contractors and safety procedures. Will the Minister engage with officials from BGE or CER or other appropriate officials in order that a similar incident does not recur? The three families evacuated remain out of their homes because serious damage was done to them. I appreciate that the Minister is present to reply.

Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte)

I welcome the opportunity to address the House on the important topic of gas safety. I entirely agree with the Deputy that safety must be of paramount concern.

BGE is the owner of the national gas transmission and distribution systems and is mandated with the development and maintenance of the natural gas network under the Gas Act 1976. The Commission for Energy Regulation, CER, is the statutorily independent energy regulator charged with all aspects of the licensing of transmission and distribution operators. A key legal responsibility of the CER is to promote the safety of natural gas for customers and the public generally. The regulator's remit also includes specific responsibility for the regulation from a safety perspective of undertakings involved in gas transmission, distribution, storage, supply and shipping. It has established a natural gas safety regulatory framework, including a system for the inspection and testing of natural gas transmission and distribution pipelines.

The CER places obligations on undertakings to ensure that safety risks associated with their operations are reduced to as low as reasonably practicable. BGE's transmission and distribution operations are subjected to ongoing audit and inspection by the CER. Additionally, BGE reports quarterly to the CER on a comprehensive range of safety performance indicators to verify that all operations are in compliance with the overall natural gas regulatory framework. Safety is BGE's first priority. The company is committed to ongoing development and maintenance of the gas networks and systems to ensure safety and to deliver continuous safety improvement and performance. It also has a continuous programme of safety promotion, including the gas efficiency service, the "dial before you dig" service, the promotion of registered gas installers and raising public awareness of the dangers of carbon monoxide.

Since its establishment, BGE has developed and modernised a national gas distribution pipeline network and a gas transmission pipeline network. The company operates the networks in compliance with recognised Irish and international quality and safety standards. Bord Gais Networks, BGN, manages gas network maintenance and safety programmes using procedures under the CER's gas safety regulatory framework and the requirements of the Health and Safety Authority. The regulator has a comprehensive audit regime to monitor compliance with safety case requirements.

It is standard procedure that natural gas incidents are investigated by BGN and a report prepared on all relevant findings. In the case of the incident that occurred last Saturday, BGN has carried out a preliminary report into the incident. In accordance with standard procedures, the regulator has instructed independent consultants to carry out an investigation into the incident. I understand from the regulator that it expects the independent assessment to be completed early next week. The CER ensures that all follow-up actions from such investigations are subsequently carried out by BGE, as required, and that areas of learning from particular incident are used to put in place measures to help prevent similar incidents recurring.

I have every confidence in BGE's priority commitment to safety and its safety and emergency response service but there is never room for complacency and the company is engaged in a constant process of safety review and enhancement working with CER.

I fully share the Deputy's concerns in regard to the incident last Saturday and gas safety in general. I would like to convey my sympathy to the unfortunate injured occupants. There can be no room for complacency where the protection of life is concerned. We need to ensure that all lessons are learned from such incidents and that all necessary measures are put in place to reduce or eliminate the risks of similar incidents recurring.

CER's process of investigation of gas safety incidents and follow-up action on recommendations is well established. An example is a gas explosion at a private residence in Rathfarnham in November 2003. Among the recommendations of the report of that investigation, all of which were endorsed by the CER, was that BGE should implement a programme of cast iron mains replacement in areas of subsidence. At the time, the company was systematically replacing the entire old networks with modern plastic pipes. Prior to the Rathfarnham incident the programme had been projected to take between ten to 15 years. In 2004, BGE revised its plans in conjunction with the CER and fast tracked completion of the renewal programme in five years.

It will be a matter for the CER to assess the recommendations of the two investigations into the Leixlip incident. The regulator will then consider what, if any, remedial measures are necessary to augment safety standards. I will take a close interest in the outcome of the regulator's investigation.

Deputy Catherine Murphy

What happened last Saturday is rare. Many houses are connected to the network. I am connected to the gas network and I have confidence in the system. I welcome that the report will be delivered as soon as next week but this incident has exposed a weakness in that having fixed a gas leak, the next stage of testing the homes in the area for the presence of gas was not undertaken. That is the critical issue. It is a missing element in what should have happened. We read, watch and listen to various advertisements that ask us to ring a number if we smell gas, not to smoke or use a naked flame or not to unplug a switch and so on. However, if one is not connected to the gas network, the last thing one would think is that one could be at risk. There is a responsibility on BGE to ensure when such an incident occurs, the neighbouring area is also protected because there is no way that someone would have thought that lighting a candle in a house using oil fired central heating could cause an explosion.

Deputy Pat Rabbitte

I agree entirely with the Deputy that, happily, such incidents are rare but that does not mean this was not a most unfortunate incident. I extend my sympathy to the people injured in these circumstances. I am not sure it would be helpful for me to offer opinions. The preliminary accident report is filed already and that, in turn, triggers the next step, which is an international independent reputable forensic assessment of what happened and what the recommendations ought to be. That assessment will be concluded as early as next week and the regulator is bound, by his own custom and practice, to act on it.

In particular, I note what the Deputy stated about adjacent houses not having been evacuated and the care that she thinks was necessary not having been taken. Is it not appropriate for me - I do not have the technical qualifications - to get into that area, but I note what she stated and I am quite sure that it will be fed in to the examination being done.

Dáil Éireann debate - Thursday, 19 Jan 2012