Mr. John Reilly:

Deputy Marcella Corcoran Kennedy referred to fossil fuel subsidies. It is correct that Ireland and most of the rest of the world provide subsidies for fossil fuels. Much of this is linked with energy security. In Ireland's case, the subsidies afforded to peat-fired energy generation arise from the State's need at a certain time to increase its indigenous production of electricity. As I indicated, in 2000 Ireland imported almost 90% of the resources required to generate electricity. This is not a sustainable or secure position. The European Union encourages member states to use indigenous resources. Just as the Spanish Government subsidies coal-fired generation in Spain, there are elements of subsidies for various fossil fuels in Europe. This is allowed under EU state aid rules to encourage indigenous production.

For the purpose of moving forward, the International Energy Agency has much to state about the cost of electricity generation. If fossil fuel subsidies were withdrawn, renewable energy resources, for example, geothermal energy and some of the more expensive anaerobic digestion approaches, could perhaps compete better on a level playing field. That is an issue for policy makers rather than developers. We will follow policy and the price signals being given to us in terms of development. Bord na Móna is generating electricity from three sources. I forgot to mention landfill gas. The simple fact is that the lowest price paid to us is for onshore, wind-generated electricity.