Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

There is no doubt the north west, in particular, is somewhat disadvantaged in this regard. I am familiar with the report from the Western Development Commission to which Deputy Naughten refers. Two difficulties arise in this respect. First, we cannot create a hypothecated fund or earmark funds for a particular purpose. The legislation derives from the history and background of the decision to dispose of State assets, starting from a point where it was the adamant view of the troika that all proceeds realised from such disposals should go towards writing down debt. Over a period of more than six months, the troika's position moved to one where it stipulated that 50% of such proceeds could be used for productive job investment, with the remaining 50% to be used ultimately to pay down debt. Theoretically, therefore, there is no reason that funding for Deputy Naughten's purpose could not come under the first category, other than that extensions of the gas network are based on an economic assessment carried out by Gaslink at the behest of and overseen by the Commission for Energy Regulation. Gas extensions proceed only where they pass this economic test. For example, a recent decision to extend the gas network to Nenagh was on a knife edge but was eventually brought across the line by two or three employers in the town. Employment prospects at one large creamery in particular were considered sufficient to warrant the extension of the networks to the town. However, the proposition that one would extend the gas networks to consumers who could not bear it for economic reasons would not be approved by the regulator.

Deputy Naughten's secondary request was that I examine the criteria the regulator brings to bear. This is complex terrain and while I am not opposed to carrying out such a review, as circumstances stand, I am not in a position, nor would I be a position even with the approval of the Minister for Finance, to earmark part of the probable proceeds for a stated purpose other than the generic one of creating employment. Even if I could so designate the proceeds, it would not change the criteria which are applied by the regulator in deciding where there is an economic proposition to extend the network.

While I accept that this issue has created problems in the north west, the manner in which that issue can be addressed is for another day's discussion. The issue arose in a different context in terms of natural gas coming ashore in north County Mayo. Deputy Naughten will be familiar with the proposals made by Mr. Peter Cassells in that regard. I have always believed that those who have taken a particular stance in the area in question have undersold the benefits that arose from the discussions Mr. Cassells held, which will make a significant contribution, at least in County Mayo. I accept, however, that as one moves up through County Roscommon and into County Sligo and further, a significant issue arises. However, under the economic criteria currently applied by the regulator, I am not enabled to do as the Deputy proposes.