Denis Naughten (Roscommon-South Leitrim, Independent) | Oireachtas source

Section 12 deals with the transfer of the BGE and Gaslink network. I wish to raise again a concern which I raised on Second Stage in relation to the network. The Minister has received a detailed submission from the Western Development Commission regarding the use of part of the funds to be generated from the sale of this particular entity, Bord Gáis Éireann, for the extension of the third phase of the development of the network to towns in the west and north west that have not to date had access to gas. The Western Development Commission estimates that this would save businesses in the north west region approximately €16.4 million per annum. When Gaslink completed its assessment, in terms of the cost benefit analysis of bringing gas to the regions, it found the cost of bringing gas to a town like Carrrick-on-Shannon would be a negative of €1.12 million. If gas was available in Carrick-on-Shannon businesses there would save €7 million per annum. However, because of a shortfall of €1.12 million this will not now happen. The same argument could be made in relation to Longford, Sligo, Ballaghaderreen, Boyle, Roscommon and so on. The reality is that there is no money available to meet this deficit.

Gaslink carried out its assessment based on the criteria set out by the energy regulator. This legislation facilitates the sale of Bord Gáis Éireann, the money generated from which is to be used for job initiatives. Surely there is no better job initiative than the laying of a valuable infrastructure network that would sustain not only existing jobs but create additional jobs in a part of the country in which there has been a huge haemorrhage in terms of emigration and which is at a competitive disadvantage in comparison with other parts of the country. I will give an example. An employer with whom I spoke during the past fortnight, who currently employs 60 people, told me that he if had access to natural gas he could employ an additional ten people tomorrow. This is the difference access to natural gas would make to him. I do not believe that the west should be the only region in the country with no access to gas.

The reality is that if provision is not made in this legislation for between 7% and 10% of the funds generated from the sale to be used for expansion of the gas network this will not happen. If this cannot be done then the criteria laid down by the energy regulator in relation to the assessment of the cost benefit analysis in bringing gas to these regions should at least be reviewed. That towns like Carrick-on-Shannon are losing out in terms of gas provision owing to the unavailability of €1.12 million is unacceptable. There is a need for consideration of socioeconomic dividends and balanced regional development in this regard, none of which are taken into account in terms of the manner in which CER has laid down the criteria on which Gaslink is required to make its assessment. The cost could be paid off over a longer term by way of user charges following a variation of the criteria laid down by CER or, as suggested by the Western Development Commission in a document it published some years ago, a small proportion of the money generated from the sale of Bord Gáis Éireann could be ringfenced for expansion of the network not only to towns in the north west but to other towns throughout the country where there is a small margin in terms of it being financially viable to bring gas to them. This would be of huge benefit to businesses and industries in such towns and to the people currently employed therein.