Bernard Durkan (Kildare North, Fine Gael) | Oireachtas source

I understand that matters will be brought to a conclusion in six minutes. However, I will do my best to address a major subject such as this in six minutes. As already indicated by speakers, and most recently by Deputy Michelle Mulherin, the importance and cost of energy is a serious issue in the context of our economic recovery and performance. The points the Deputy made are relevant in the present context. For example, the emphasis now is on privatisation. I am not a great supporter of privatisation if the same service can be delivered by the public sector. Unfortunately, in times past, there were flaws in both systems and we must now start again.

Eircom is a classic example. There is a lot of emphasis now on not-for-profit companies. Public companies were only required to deliver a service, to break even and to provide sufficiently for future infrastructural requirements. That did not always happen and we had problems. We now face a situation that requires careful monitoring. With a multiplicity of companies, all in the same business of providing energy at one level or another and at some cost or another, the tendency is for the regulator to intervene and to regulate the price in such a way as to create difficulties for the consumer. This may be an issue we will have to revisit. From past experience, in my lifetime in this House we saw a change in the banking system to bigger banking institutions, the removal of smaller institutions and the amalgamation of others.

Now there is a change in emphasis again. The large corporations are no longer regarded as fit for purpose and we are going to change back to the old system, having regard to the experiences we have had. That is interesting because we have the old system already in the energy sector, but the question then arises of whether we can achieve the level of efficiency required to deliver the service by a multiplicity of companies with individual administrative costs right across the board which the consumer must meet at the end of the day. That is the issue that needs to be examined in the future.

I have often commented on regulation in the past. It is harsh for the consumers to be told with regret that the regulator has decided that their gas or electricity bills are going up. It is a serious issue. There were many occasions in the past when we in this House had to comment on the regulatory system and how it affects the consumer. Let us not forget for one moment that these issues never go away.

The other pressing issue is economic recovery. We must utilise our energy system in every way possible to assist economic recovery. That means, in the case of exploration, generation and transmission, that we must ensure we arrive at a juncture at which we achieve the maximum efficiency so that in the course of our thrust towards economic recovery we are competitive with all others throughout Europe, because that is where our market is. We must be competitive on production and administrative costs with our colleagues throughout Europe who, in turn, are selling their product to their consumers. In fact, in the past we have not fared all that well in that area and it is an issue with which we must deal in some shape or form in the future.

Energy is most important to economic development and performance. The cost of energy is equally important, as it is a major input. There is a tendency nowadays for us to become concerned about the environmental impact of many of our energy providers, whether it be ESB generation, wind farms, gas exploration or whatever. There is a need to do more in terms of bringing information to the public that is reassuring and of a sufficient level to enable people to make an objective decision about its attitude to what we are trying to do. There is nothing to be gained from sticking our heads in the sand and pretending that we object forever to the promotion of our energy sector. We must develop our energy sector quickly. We must get our energy into the grid and to the consumer and we must avail of the economic benefits accruing therefrom.

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