Written Answers Nos. 1-19
9. Deputy Richard Boyd Barrett asked the Minister for Communications; Energy and Natural Resources with regard to the exploratory licence recently granted to a company (details supplied), when the drilling in Dublin Bay is due to commence; and if he will make a statement on the matter. [43741/12]
View answer33. Deputy Thomas Pringle asked the Minister for Communications; Energy and Natural Resources with regard to the exploratory licence recently granted to a company (details supplied), when the drilling in Dublin bay is due to commence; and if he will make a statement on the matter. [43743/12]
View answer37. Deputy John Halligan asked the Minister for Communications; Energy and Natural Resources with regard to the exploratory licence recently granted to a company (details supplied), when the drilling in Dublin bay is due to commence; and if he will make a statement on the matter. [43742/12]
View answer41. Deputy Joan Collins asked the Minister for Communications; Energy and Natural Resources with regard to the exploratory licence recently granted to a company (details supplied), when the drilling in Dublin bay is due to commence [43744/12]
View answerI propose to take Questions Nos. 9, 33, 37 and 41 together.
Standard Exploration Licence 2/11 was granted last year to a consortium comprising Providence Resources Plc and Star Energy Oil and Gas Ltd. The licence, which is a follow-on authorisation to Licensing Option 08/2, covers an area of approximately 380 square kilometres in the Kish Bank Basin off the Dublin/Wicklow coast. Star Energy’s stake in the licence is now held by PSE Seven Heads Limited.
The licence was granted for a six-year period and includes an obligation to drill an exploration well by 17th August 2014.
While my Department has not as yet received a detailed application from Providence Resources for approval to drill on the licence, I am aware that environmental and safety concerns have been raised about the proximity of the proposed well to Dublin Bay.
In this regard, I can assure the Deputy that drilling operators are required to comply with best international practice when carrying out drilling operations offshore Ireland. My Department will only give an approval to drill once it is satisfied that drilling operations can be carried out in a safe manner and without negative social or environmental impact.
Exploration Licence holders are required to engage a competent Independent Well Examiner to verify the safety of all drilling rigs, drilling equipment, pressure containment systems and drilling processes in advance of and during drilling operations. The well examiner has a role for as long as drilling operations continue and is required to verify any changes to drilling plans. Ongoing monitoring by the Independent Well Examiner, my Department’s Advisers and my Department’s technical specialists continues throughout the drilling of a well.
10. Deputy Thomas P. Broughan asked the Minister for Communications; Energy and Natural Resources if he will report on the recent €600m electricity interconnector between Ireland and Britain; the implications of the new interconnector for the Irish energy market; his views on the implications of the interconnector for nuclear power in the UK and Irish energy markets; and if he will make a statement on the matter. [43581/12]
View answerEirGrid the State-owned electricity transmission system operator has recently overseen the completion of construction of the East West Interconnector between the electricity grids of Ireland and Britain. The construction and operation of the East West Interconnector is the statutory responsibility of EirGrid. The cost of the Interconnector is underwritten by all electricity customers under the regulatory model implemented by the Commission for Energy Regulation.
The East West Interconnector is a strategically vital energy project for the island of Ireland. It will critically contribute to national security of energy supply and competition as well as underpinning the progressive development of renewable energy, and the convergence of the electricity markets across these islands. I am informed by EirGrid that the latter stages of the testing phase have identified some technical issues which they are investigating with a view to the full commissioning of the interconnector as soon as possible.
The position of successive Governments over many years is that nuclear power is neither sustainable nor the answer to meeting Ireland’s energy needs. This position is shared by several EU Member States. Moreover, the use of nuclear fission for the generation of electricity in Ireland is prohibited by statute. These prohibitions do not include the importation of electricity generated by nuclear energy elsewhere.
It is the case that nuclear generation forms part of the overall UK generation fuel mix. The Lisbon Treaty legally provides for individual Member States to determine their own energy mix. Ireland currently imports electricity from time to time from Northern Ireland, which is in turn linked to the UK electricity market via the Moyle Interconnector. Electricity imports from the UK will be increased with the completion of the East West Interconnector.
It is not technically feasible to guarantee that electricity imported over an interconnector is not generated from nuclear sources as it is not possible to distinguish the flow of electricity across interconnectors by reference to the original source of supply or generation.
This is a landmark project in the history of Irish energy policy. I am informed by EirGrid that investigations arising from the latter states of the testing will have to be completed before full commissioning.
11. Deputy Denis Naughten asked the Minister for Communications; Energy and Natural Resources the steps being taken to ensure that the new 4G network provides the maximum geographical coverage; and if he will make a statement on the matter. [43508/12]
View answer13. Deputy Peadar Tóibín asked the Minister for Communications; Energy and Natural Resources when he expects the 4G network to be rolled out across Ireland; and if he will make a statement on the matter. [43735/12]
View answerI propose to take Questions Nos. 11 and 13 together.
The management of the radio spectrum is a statutory function of the Commission for Communications Regulation (ComReg) under the Communications Regulation Act, 2002 as amended.
ComReg is currently in the process of awarding spectrum rights of use across three critical bands – the 800Mhz, 900Mhz and 1800Mhz bands – for the period 2013 to 2030. These spectrum bands are highly suitable for advanced mobile services due to their excellent propagation properties, which allow for wide area coverage and improved in-building reception.
ComReg set out the process it has adopted for the award of rights of use for radio frequencies in the 800Mhz, 900Mhz and 1800Mhz bands in its information memorandum and associated documents (ComReg document 12/52). These documents also set out the reasons, analysis and other material relied upon by ComReg in support of its substantive decisions regarding the minimum coverage and rollout requirements for the rights of use to be granted in the award process.
Amongst other things, ComReg considered that actual coverage levels are expected to exceed a minimum 70% population obligation given the competitive nature of the market and the limited risk of roll-back of coverage from the existing levels. ComReg also noted that coverage continues to be an important differentiator in the mobile telecommunications market such that any material deterioration in coverage by any one network would undermine that network’s attractiveness to its existing and potential consumers. It is also important to note that the coverage proposals are designed to facilitate the possible entry of new operators in a matter that would ensure that ‘cherry picking’ of high density urban areas would not occur.
This award process is a vital step in allowing for the next generation of advance mobile services to be made available for Irish consumers and businesses from next year. The process of awarding of spectrum rights is entirely a matter for ComReg and I am not in a position to comment on it progress.
12. Deputy Michael Moynihan asked the Minister for Communications; Energy and Natural Resources his plans for selling off parts of Bord Gáis and the potential impact this could have on the work of Irish Water; and if he will make a statement on the matter. [43709/12]
View answerThe Government has decided to dispose of Bord Gáis Éireann’s Energy business as part of the State Assets disposal programme. The Government has also reiterated its commitment to retaining the gas networks as well as the two gas interconnectors in State ownership as national strategic infrastructure, critical for the delivery of secure, sustainable and competitive energy supplies.
BGÉ is a strong and dynamic State company. The success of Bord Gáis Energy demonstrates BGÉ’s capacity to develop new and efficient businesses for the benefit of Irish consumers as well as the State as shareholder.
The decision to establish Irish Water within the BGÉ Group reflects the Government’s confidence in BGÉ. BGÉ’s experience in the key areas of raising finance, operating and investing in critical network infrastructure and delivering excellent customer service, will be effectively deployed in the successful establishment and operation of Irish Water.
My colleague, the Minister for Environment, Community and Local Government, has advised that the implementation strategy for Irish Water is being finalised by his Department, in collaboration with BGÉ, all relevant Departments, including my Department, as well as the local authorities, and with the advice of NewERA.
In parallel, significant progress has been made in implementing the asset disposal programme, in line with our commitments under the EU/ECB/IMF Funding Programme. Tender processes for the appointment of financial advisers to oversee the sale of Bord Gáis Energy are underway.
NewERA is the agency with responsibility for oversight of the sale transaction on behalf of the Government. My Department is also progressing priority actions to address necessary legislative, regulatory, and financial issues with a view to commencing the disposal process in 2013. The Departments, NewERA and BGÉ are fully cognisant of the need to ensure that the work on the sale of Bord Gáis Energy and the establishment of the Water utility are progressed concurrently and to schedule. The Government will be briefed on a regular basis in relation to progress on both fronts.
I am confident that BGÉ will rise to the challenge to sustain its oversight and operation of the strategic State owned gas infrastructure as well as working with the Government on the successful sale of Bord Gáis Energy and the establishment of Irish Water to schedule.
15. Deputy Peadar Tóibín asked the Minister for Communications; Energy and Natural Resources the steps he is taking to ensure that all enterprises will have access to fibre based broadband connectivity. [41605/12]
View answerThe Government’s National Broadband Plan, which I published in August, aims to radically change the broadband landscape in Ireland by ensuring that high speed services of at least 30 megabits per second are available to all enterprises and homes well in advance of the target date of 2020 set by the EU Commission in the EU “Digital Agenda for Europe”. The 30 megabits speed is a minimum target, I expect that significantly higher speeds will be available to as many enterprises and homes as possible.
The National Broadband Plan for Ireland commits to high speed broadband availability across the country specifically: 70–100 megabits per second will be available from the commercial market operators to more than half of the population by 2015; at least 40 megabits per second and in many cases faster speeds, to at least a further 20% and potentially as much as 35% of the population during the lifetime of the Government; and a minimum of 30 megabits per second for every remaining home and business in the country, also during the lifetime of the Government.
The provision of electronic communications services, which includes the provision of high speed broadband services, operates within a fully liberalised EU internal market. Intervention by any Government in that market must comply with EU competition law and its rules on State Aids in particular.
During the preparation of the National Broadband Plan, the commercial market operators indicated that they expect to provide 70Mbps to 100Mbps services to 50% of the population by 2015. The areas to be provided with those services will be determined by the commercial market operators and no issue of State Aid arises.
A qualifying requirement of EU State Aids rules generally is that the aid does not displace or distort public or private commercial investment in that product market at the quality level required.
In the case of state aid for broadband products and services, any State Aid must comply with EU Commission guidelines specific to State Aid investment in broadband infrastructure.
One of the first steps in delivering on the 30Mbps and 40Mbps commitments will be the completion of a formal national mapping exercise to determine the exact position in relation to commercial service providers’ existing and planned broadband services throughout the country, as required by the sectoral state aids guidelines. Preparatory work has commenced within my Department on the mapping exercise.
An additional requirement of the guidelines is that any market intervention is technology neutral. The National Broadband Plan cannot therefore dictate the technological solution which will be used in a future public procurement process to identify a network provider or providers.
The outcome of the mapping exercise is an essential element in any State Aids notification and will also inform the design of the procurement process. The responses received from the commercial market in the procurement process will determine the technological solution or solutions to be used.
18. Deputy Michael Moynihan asked the Minister for Communications; Energy and Natural Resources in view of estimates that the Barryroe Oilfield contains more than a billion barrels of oil, his plans to maximise the benefit to the State of such resources; and if he will make a statement on the matter. [43705/12]
View answerWhile the results of the recent appraisal well on Barryroe are encouraging, further appraisal work will be required to determine if the discovery can be declared commercial and proceed to a petroleum production project.
It is a core policy objective of my Department to maximise the benefits to the State from exploration for and production of our indigenous oil and gas resources. The principal strategy in this regard is to encourage exploration investment, while ensuring that exploration activities are conducted safely and with due regard to their impact on the environment.
While development projects can generate a significant amount of economic activity, the principal direct financial benefit to Ireland from successful exploration will come in the form of the corporation tax paid on profits from petroleum production.
The tax terms, which were last revised in 2007, provide for a tax take of between 25% and 40% of profits made and seek to strike a balance between maximising the financial return to the State and the need to set the terms at a level that will encourage exploration companies to invest in exploration in the Irish offshore.
While I will keep the licensing terms under review in light of relevant future developments, at this point in time, I believe that the focus should remain on attracting a greater share of international exploration investment to Ireland in order to increase the chances of new commercial discoveries being made.
19. Deputy Billy Kelleher asked the Minister for Communications; Energy and Natural Resources his plans for the disposal of any State assets under the aegis of his Department; the timeframe for their disposal and the progress to date; and if he will make a statement on the matter. [43699/12]
View answerThe Government has decided to dispose of Bord Gáis Éireann’s Energy business and some of ESB’s non-strategic power generation capacity as part of the State Assets disposal programme.
The Government has also reiterated its commitment to retaining the electricity and gas networks as well as the two gas interconnectors in State ownership as national strategic infrastructure, critical for the delivery of secure, sustainable and competitive energy supplies.
ESB will remain a vertically integrated utility, positioned more competitively in the all-island energy market and in due course in the integrated European Market. The sale of Bord Gáis Energy will support this dynamic, successful company and its employees to continue to invest and grow while enhancing competition in the energy market for the benefit of the economy and consumers.
Significant progress has been made in implementing the asset disposal programme, in line with our commitments under the EU/ECB/IMF Funding Programme.
Tender processes for the appointment of financial advisors to oversee the sale of Bord Gáis energy are underway. NewERA is the agency with responsibility for oversight of the sale transaction on behalf of the Government. My Department is also progressing priority actions to address necessary legislative, regulatory and financial issues with a view to commencing the disposal process in 2013.
