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Dáil Éireann debate -
Wednesday, 7 Mar 2012

Vol. 758 No. 2

Other Questions

Telecommunications Services

John McGuinness

Question:

6Deputy John McGuinness asked the Minister for Communications; Energy and Natural Resources when he expects 100MB broadband to be rolled out to all secondary schools; and if he will make a statement on the matter. [12882/12]

All post-primary schools will have a 100 MB broadband connection installed by the end of 2014 in a project jointly funded by the Department of Communications, Energy and Natural Resources and the Department of Education and Skills. This follows on from the successful pilot project which has been running in some second level schools for the past two years. The national roll-out will be completed on an incremental basis, with 200 schools being connected by October 2012, a further 200 being connected in 2013 and the remaining 250 schools being connected in 2014.

This investment is tangible evidence of the Government's commitment to the integration of ICT in teaching and learning, and to our support for a new digital economy. The availability of high quality broadband connectivity will allow schools to fully integrate ICT as a key teaching resource for all subjects. In so doing, we will enhance the traditional learning experience as well as providing basic building blocks for a 21st century digital workforce.

It is expected that the first 200 second level schools in the national roll-out will be connected by September 2012, although some of them will not be connected until October, depending on the arrangements. These include all second level schools in counties Cavan, Clare, Donegal, Galway, Laois, Leitrim, Longford, Louth, Mayo, Monaghan, Offaly, Roscommon, Sligo and Westmeath. Working closely with my colleague, the Minister for Education and Skills, I look forward to the full roll-out of this programme over the next three years.

That is a welcome announcement for the schools. What is the basis for selection and which counties will receive the roll-out in 2013?

My own county, I hope.

I am concerned about my county too.

To be honest, I have not got that far yet. The reason I selected the 12 counties mentioned is because broadband is weakest in most of them. They have basic broadband, but they do not have high speed broadband. I visited a school in Claremorris, with which I have some familiarity, where the first year students have been using tablets since the beginning of the academic year, but due to the weakness of broadband provision, they will not be able to continue that as they move through the school. The fantastic opportunities created by the availability of industrial strength broadband in second level schools mean that 50 classrooms can operate at the same time and the quality of teaching and learning is enhanced.

The truthful answer to Deputy Collins's question is that I have not decided for 2013. The criteria for this year related to where broadband provision was weakest. I would like to see the belt of west Dublin being included next year, but if Deputy Collins is making a plea for west Limerick, I will have a look at that as well.

That is very charitable.

I would also like to make a plea for Kildare.

This could go on tour now.

Has the Minister any intention of bringing in the 100 MB broadband service into primary schools? There are many rural areas that do not have access to high speed broadband, even though some people would like to work from home. Does the Minister envisage the possibility of bringing the service to rural areas?

This question deals with broadband provision, as does Question No. 17, but I do not think we will get to that. When is the next generation broadband task force due to report? What resources will be made available to it when it reports?

The two questions are connected. I had a considerable battle to get the money to roll out high-speed broadband across the second level schools. The capital cost is being borne by my Department. We are also bearing the current cost in the year of installation and for a year thereafter. I certainly do not have the resources to perform a similar role for the primary schools.

Deputy Lawlor and I might have an interesting discussion at another time about whether this facility is as badly needed in primary schools as it is in second level schools. In any event, his question is connected to that raised by Deputy Murphy about the general quality and availability of broadband throughout the country. We have had the last meeting of the task force, which I have chaired, between representatives of telecommunications companies and the relevant senior people in my Department. The purpose of that report is to address Ireland's competence in next generation access. As a result of that report, I will be required to bring a plan before the Government that devises a roadmap for the future in this critical area, highlighting where there is robust competition and adequate, acceptable high quality connectivity, and where there is not. I hope to pick up some of the concerns of both Deputies in that context.

Energy Prices

Bernard J. Durkan

Question:

7Deputy Bernard J. Durkan asked the Minister for Communications; Energy and Natural Resources the extent to which energy prices here compare favourably with those other EU jurisdictions within the Eurozone and without, the extent to which opinion has been sought to identify the reasons for any disparities; if he can through the aegis of the Regulator put in place any measures to address identifiable factors affecting possible gas, petrol, diesel and heating oil in view of the necessity to achieve competitiveness and eliminate possible speculation on world markets; and if he will make a statement on the matter. [12848/12]

The Irish oil industry is fully privatised, liberalised and deregulated, and there is free entry to the market. There is no price control on petroleum products and it is government policy to encourage price competition and consumer choice. Responsibility for the regulation of the electricity and gas markets is a matter for the Commission for Energy Regulation, which is an independent statutory body.

Previous surveys have shown that prices charged by Irish retailers for oil products relate to the refinery price rather than to the price of crude oil. Prices at the pump reflect the volatile market price, as well as transportation costs, trends in euro-dollar exchange rates and other operating costs, together with the impact of taxation on oil products.

Figures produced by the EU market observatory for energy in its oil bulletin, in respect of prices in force on 20 February 2012, indicate that the price in Ireland of petrol and diesel - I think this is the point being raised by the Deputy - was lower than the EU average, and that the price of home heating gas oil was higher than the EU average. Such prices were inclusive of duties and taxes.

Ireland's electricity and gas markets, both wholesale and retail, are characterised by increasing competition, regulated by the CER. Competition puts downward pressure on prices, while we must acknowledge that global fossil fuel prices are a factor outside Ireland's control. Prices in the retail electricity market are now fully deregulated. Since 1 October 2012, the residential gas consumer segment is the only segment of the electricity and gas markets where prices are regulated. Prices in the electricity market and the unregulated part of the gas market are wholly commercial and are set by the suppliers.

While Ireland is a price taker for imported fossil fuels, we will continue to focus on any additional actions to mitigate costs, where possible, for business and domestic customers. This is essential for competitiveness, employment and economic recovery. I am committed to working with enterprise and with the energy sector to ensure the costs of energy for businesses are as competitive as possible.

Latest EUROSTAT data, published by the Sustainable Energy Authority of Ireland for the first six months of 2011, show that Irish electricity and gas prices are competitive by reference to the EU average for medium to large business customers.

I thank the Minister for his comprehensive reply. Does any evidence exist of commodity speculation in the marketplace which might have a negative impact or assert upward pressure on energy prices in this country, given that we are importers? Can any special effort be made through the regulator to ensure there is every possible opportunity to reduce the price of oil, oil products and energy in this country in order to enable us avail of every opportunity to move towards economic recovery?

Deputy Durkan is probably correct that one can never rule out speculation in the oil market as a factor. The problem is that, ultimately, we are price takers. Until we find oil off our own coast, which many seem determined we will not, we will import it.

The latest figures from data published by EUROSTAT show that Irish electricity and gas prices are performing well by reference to the EU average for medium to large-size business customers. That is not to say they compare with the best, but they compare favourably with the average. The VAT-exclusive electricity price in Ireland for these business consumers ranged from 10% to 17% below the EU average and from 13% to 19% below the eurozone average. These customers accounted for 48% of the business electricity market. Prices for gas customers were below the EU average by 4% to 25% for most business gas categories.

Larger domestic electricity consumers, representing 64% of the domestic electricity market experienced price reductions between 6.1% to 7.6% over the period. The prices for these consumers were between 7% and 19% below the EU average.

Electricity Transmission Network

Clare Daly

Question:

8Deputy Clare Daly asked the Minister for Communications; Energy and Natural Resources if he is satisfied with the EMF evidence submitted by Eirgrid in relation to the east west interconnector. [12637/12]

The State-owned independent transmission system operator, EirGrid, is building the east-west interconnector between Ireland and Britain. The interconnector, which is on schedule and within budget, will be commissioned this autumn.

The interconnector is a strategically vital energy project for the island of Ireland and is financially supported under the European Energy Programme for Recovery. It will critically contribute to national security of energy supply and competition as well as underpinning the progressive development of renewable energy.

I have no role in the planning and construction of the transmission network, including the interconnector, which are operational matters for EirGrid. The planning process is a matter for An Bord Pleanála under the Planning and Development (Strategic Infrastructure) Act 2006.

EirGrid obtained full planning permission for the east-west interconnector from An Bord Pleanála in 2009. This approval followed a comprehensive assessment process including an oral hearing at which all stakeholders were present.

During the planning process, including the oral hearing, public health and safety considerations were fully covered. In that context, I want to place on record once again that I have no reason whatsoever to believe that any relevant data on EMF or any other health and safety dimension of the interconnector was withheld from, or misrepresented to, the planning process. I am categorically assured by EirGrid that this is not the case and I would expect no less an assurance from the State-owned transmission company.

I am aware that in 2010, after the decision by An Bord Pleanála, members of Rush Community Council raised further concerns about the health and safety implications of the interconnector project. These matters have been comprehensively dealt with in the planning process. However, in order to assist local community understanding and confidence, my Department commissioned an additional independent expert opinion on health issues relating to high voltage direct current cable technology. The expert opinion was provided by Dr. Eric van Rongen, a leading international expert on EMF. Dr. van Rongen's report has been in the public domain since October 2010 together with an additional report on the operational safety of the interconnector undertaken by the international energy consultants KEMA, published in June 2011.

The two additional reports reinforce the conclusions inherent in the decision of An Bord Pleanála that Ireland's east-west interconnector project fully meets all relevant international health and safety standards.

I stated last year that it was time to bring closure to the ongoing debate on these matters, and I say it again today. I have full confidence in EirGrid's commitment to complete the east-west interconnector successfully to the highest safety standards in the national interest and without risk to the health and safety of local communities.

It was a specific question to which the part the Minister addressed was where he stated he had no reason to believe that any information was withheld or that An Bord Pleanála was misled. That is a factually inaccurate statement because the Minister has evidence to the contrary.

There was the meeting the Minister held with Rush Community Council where it was reported, and EirGrid itself has admitted, that the company did not submit information on time-varying magnetic fields as part of the An Bord Pleanála hearing.

Professor Anthony Staines, co-author of the Government's report on the health effect of electromagnetic fields, has stated that it now appears that the evidence as to the induced magnetic field presented at the oral hearing was seriously inaccurate and, therefore, a potential adverse health affect of the cable system has not been assessed for the received planning permission and has not informed the route selection process. This former Government adviser went on to state that this causes serious public concern and was serious misrepresentation to the planning hearing and that, in his opinion, a new planning permission is required.

Based on information that the Minister had previously and information that I have resubmitted here today, that a former public health adviser to the Government has stated that the evidence submitted by EirGrid was flawed, what does Deputy Rabbitte propose to do about it?

As Deputy Clare Daly will be aware, I tested her propositions with EirGrid and I am satisfied the material that I have put on the record of the House is the honest and best assessment available to me.

Deputy Daly is correct in one regard, that is, that I met Rush Community Council and as a result of that meeting, I re-tested the claims it makes that EirGrid withheld or misrepresented data on EMF during the planning process. These allegations are categorically refuted by EirGrid. Subsequent to that meeting, I advised Rush Community Council of the conclusions to which I had come.

I repeat the Minister is incorrect. EirGrid stated publicly to the planning authority that the magnetic field would only be static. The company now admits that it has a time-varying component. EirGrid has not denied that. The company stated that such is the case but that the impact of it is insignificant.

The Minister is inaccurate. I ask him to go back and look at his notes. There are serious health concerns which have been highlighted by Dr. Anthony Staines. These include the risk of childhood leukemia, which Dr. Staines states has not been taken into account in these studies.

As a public body, EirGrid is accountable to the Minister. He can call the company in, look at this evidence again and seek EirGrid to go through a proper planning process where this information is brought in to the public domain. I insist that the Minister would do that.

I accept that the concerns of Rush Community Council are genuinely held but I repeat that its propositions have been tested. We have met Rush Community Council directly. I have consulted my chief technical adviser, taken advice from the senior officials in my Department and put these claims to EirGrid which has responsibility in this matter. I have never heard anybody fault or denigrate the high technical reputation of its senior people or anybody else in it.

Professor Staines has.

They are the experts in these areas and have engaged in a categoric refutation of the charges repeated again today.

Energy Review

Barry Cowen

Question:

9Deputy Barry Cowen asked the Minister for Communications; Energy and Natural Resources when the independent assessment of the efficiency of the Irish electricity and gas sectors will be published; and if he will make a statement on the matter. [12864/12]

The EU-IMF-ECB memorandum of understanding in the programme of financial support for Ireland included the requirement that an independent assessment of the electricity and gas sectors, taking due account of the EU regulatory context for the sectors, be commenced by the end of September 2011. The International Energy Agency, IEA, is completing its periodic in-depth review of Irish energy policy. The agency reviews the energy policy of every member country every four to five years. On this occasion, at my request, its review has included an assessment of the efficiency of the Irish electricity and gas sectors, as required under the troika memorandum. The review commenced in September 2011 in line with the memorandum of understanding requirement. My Department received an advance confidential copy of the assessment in January.

The in-depth review of all aspects of Ireland's energy policy is being completed by the IEA and will encompass the independent assessment of the efficiency of the electricity and gas sectors. The IEA advises that the date of publication of the review is mid-year.

Informed by the IEA advance assessment, my Department, in conjunction with the regulator, is developing proposals for the Government's consideration on further action required to enhance the regulatory and market framework this year, in line with the further requirement in the latest memorandum of understanding with the troika to do so by the end of June 2012. The memorandum of understanding requirement in this regard states actions to further enhance the regulatory and market reform programme will be taken in consultation with European Commission services. The aim is to increase efficiency, improve governance, strengthen competition and improve the energy sector's ability to contribute towards addressing Ireland's financing needs and enhancing growth potential and economic recovery. Compliance with all relevant EU energy legislation, notably the third internal energy package, is a key part of the ongoing work.

While the review is ongoing, it is important that a component of the report states that for the end-consumer efficiencies and the achievement of value for money should result in lower unit prices and standing charges. In that context, will the Minister confirm if the report will be published in its entirety? Perhaps I missed it, but did he give an exact date for its publication?

As I said to the Deputy, the part of the report given to me was provided in confidence by the International Energy Agency. The particular caveat entered reads:

For the internal use of the Department of Communications, Energy and Natural Resources only. No external transmission, disclosure, re-publication, reproduction or other use of this publication or any portion thereof may be made without the prior written approval of the IEA.

The total review is to be concluded by mid-year. I cannot think of any reason the report would not be published in full.

Hydraulic Fracturing

Timmy Dooley

Question:

10Deputy Timmy Dooley asked the Minister for Communications; Energy and Natural Resources when he expects to receive the Environmental Protection Agency report on fracking; if he intends to publish a green or white paper on this subject; and if he will make a statement on the matter. [12868/12]

In October last year I requested the Environmental Protection Agency to conduct research and advise me on the environmental implications of hydraulic fracturing as a means of extracting natural gas from underground reserves. The agency is funding preliminary background research into the environmental aspects of shale gas extraction and the regulatory approaches of other countries, with a view to helping to establish best environmental practice. This research is in the form of a desk-based study being carried out by the University of Aberdeen.

The EPA proposes to commission further, more extensive, research on hydraulic fracturing in 2012. A working group involving representatives of my Department and the EPA has been established to develop the scope of this study. However, the final specification for this research will only be prepared after the EPA, an independent statutory body, has considered the output from the study under way at the University of Aberdeen. I understand the EPA expects to receive the report on that study in the coming weeks and expect it will make the final results of the study accessible to me as soon as they are available. Although my hair is grey with the subject, I have no plans to publish either a Green or White Paper at this stage.

Will the Minister explain why he has no intention of publishing a policy discussion paper on the subject? It is fair to say there are environmental concerns, but there are also human, social and community concerns, of which we have seen evidence in documentaries on the issue. For example, we know that fracking has been banned in France. A number of preliminary licences are at issue. Does the Minister not consider it would be preferable to have a national policy, rather than having hit and miss policies across local authorities? Why would we not opt for a broader national policy at this time?

We should opt for a broader national policy and I absolutely agree that is the right approach. However, I simply do not have the expert evidence available to me at this stage. A little over one year ago the previous Government issued licences for exploration to three companies, but essentially they were for no more than desktop-style surveying. I await the report of the EPA which I requested. It has advised me that this is not a simple overnight matter. Its opposite number in the United States has been examining this subject for the best part of three years and its report is due this year. This is also a major issue in the United States and it has had a dramatic impact on the price of gas which has fallen dramatically. However, it has not been without allegations in some states.

I have met groups here which are concerned about the issue and taken on board what they said. I commissioned the EPA to carry out a study as a result and I am making further money available to it, but we cannot design the project until I receive the findings of the University of Aberdeen study. In the interim, I know there are public meetings taking place in various places and that people concerned about this issue have been to Leinster House to make presentations; at least one of the companies involved has been heard here. All of this adds to the debate, but we are a long way from being able to a have an evidence-based national policy on fracking.

The Minister has said the EPA is carrying out a study and is using the study of the University of Aberdeen as part of it. Have there been consultations with the EPA's counterpart in the Six Counties, given that the fracking project will straddle the Border? Have there been consultations with the EPA's equivalent in France on the reasoning behind the ban imposed on fracking by the French Government? Is there concurrent evidence in this country to suggest the same?

Yes, I have had discussions with our colleagues in Northern Ireland about this because they seem to be further along the road than we are, and were about to commence fracking in Fermanagh in particular. They too now are pulling back somewhat and waiting until more information is available in this area.

No, I have not spoken to the French EPA, but we have spoken to some people politically in France. I understand the decision to ban is not an absolute one; it is a decision to ban until more evidence is compiled. They may well continue the ban then but I do not know. The ban is sometimes explained as conclusive evidence on the subject, but as I understand it from political sources, it is a ban pending research. Everybody across the European Union, bar one member state that is well disposed towards it, is anxious to get evidence to allay the fears of citizens about the issue and at the same time trying to balance that with the possibility of safely extracting such gas as it would have a considerable economic impact on whatever country made such finds.

Semi-State Companies

Micheál Martin

Question:

11Deputy Micheál Martin asked the Minister for Communications; Energy and Natural Resources if he will rule out the State bearing the full incidence of funding the deficits of ESB and Bord Gais when they are part privatised; and if he will make a statement on the matter. [12876/12]

The Government has decided that Bord Gáis Éireann's energy business and some of the ESB's non-strategic power generation capacity will be part of the State assets disposal programme. The Government is irrevocably committed to retaining the Bord Gáis transmission and distribution networks as well as the gas interconnectors in State ownership as national strategic infrastructure and fundamental to Ireland's security of energy supply and the economy.

The Government has also reiterated its commitment to retaining the electricity networks in State ownership and to retaining the ESB as a vertically integrated utility in State ownership as a strong strategic player in the all-island energy market and in due course in the integrated European market.

Both the ESB and Bord Gáis recorded a net profit in their most recently published financial statements. I assume that in referring to the deficits of the ESB and Bord Gáis the Deputy has in mind the deficits in the pension funds of those companies. I note the boards of management and employees of both the ESB and Bord Gáis have already agreed and are implementing measures to address the deficits in their respective pension funds.

In the context of the asset disposal programme, my Department, in co-operation with the Department of Public Expenditure and Reform and with the assistance of NewERA, is currently undertaking the necessary analysis to identify the policy, regulatory, legislative and financial issues that may need to be addressed prior to any disposal. Consideration of any identified potential pension issues as a result of this analysis will form part of the further detailed due diligence work required prior to any divestments.

I would emphasise that a guiding principle of the assets programme is ensuring that the best possible value is derived for the State, not least given that part of the proceeds can be used for re-investment to support employment and economic recovery. This underlines the imperative to ensure that the preparatory work is comprehensive and to the highest standard prior to any proposed divestment of assets from either the ESB or BGE.

We aired some of the issues relating to the question earlier on the policy of Government on privatisation or part-privatisation of State assets. It is important that the Government would pursue an agenda to provide for the creation of a register of lobbyists prior to any privatisation of State assets in the interests of transparency and accountability. We know the high-profile household names, former politicians for example from the Minister's party, the Fine Gael Party and my party, who now engage in the business of lobbying. They are above the radar but there is an army of people engaged in the lobby industry who are not household names who operate below the radar and who will potentially play a major part in lobbying and seeking to influence Government policy in this regard. It is incumbent on the Government to establish a register of lobbyists prior to going any further down the route of privatisation.

I agree with Deputy Collins that we traced the issue of the pensions previously. We can be proud of the progress made in the two companies concerned on the pension issue because pensions generally have been affected right across the economy, defined benefit pension schemes in particular. The agreements entered into are landmark agreements that might well be replicated elsewhere. That is very positive.

As regards the regulation of lobbyists, I agree with Deputy Collins that it is desirable. It is the nature of modern politics imported from the United States that one could get knocked down at the gate by lobbyists coming at one on behalf of their clients for access in various ways. I do not have any particular objection to companies using PR people to make such representations so long as - as Deputy Collins said - it is transparent. In many cases I do not understand why the companies themselves do not do the task rather than employ people to do it on their behalf, but that is a matter entirely for them.

On the sale of State assets, I put it to the Minister that he might consider the possibility I will outline instead of selling the land or forestry of Coillte outright. His Department, in conjunction with the Department of Agriculture, Food and the Marine, could examine the possibility of long-term leases for wind farm developers. The State would have none of the risk. Much of the land owned by Coillte is in areas where we have wind speeds that are suitable for wind farms. We could still maintain some of the asset that is the forestry. It would allow the State to access some of the value of the lands without risk.

I acknowledge that the Deputy has a point that desires being entertained because we must continue to build up our renewable capacity. We cannot have windmills at every crossroads in the country. It is desirable that wind farms ought to be clustered. The availability of land is most apparent in the case of some State companies, Coillte and Bord na Móna in particular, and we must have regard to that in any decision that is implemented in respect of the agreement with the troika.

I have had some discussions on the matter with my colleague, the Minister for Agriculture, Food and the Marine, Deputy Coveney. In any event, I hope it is understood that the State does not propose to sell Coillte. As the proposal currently stands the intention is to examine the sale of the harvesting of the timber but not to sell the land. Deputy Mulherin has made an important point in terms of our capacity to carve out provision for the kind of development to which she referred. I confirm that the Minister for Agriculture, Food and the Marine, Deputy Coveney, and I are currently having discussions on the matter.

Written Answers follow Adjournment.

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