Mr. Jim Gannon:

I thank the Cathaoirleach for his earlier statements. One of the most important things he said is that a huge collection of organisations and individuals, including the private sector, has delivered the level of natural resource usage we experienced over the past number of years. It will take as many stakeholders to do that again and it will take a far greater understanding, knowledge and feeling of value being generated for society to do it, because it will require more wires, construction, windfarms and solar. The more society can sense it is benefitting from that through smart meters, their own investments or other mechanisms, the more we will enjoy and be able to generate that national wealth from our natural resources.

With regard to Dr. O'Connor's comments, we share his ambition on renewable energies and electricity. We have seen a worldwide evolution of auction processes to look at the type of contracts for difference that we now see in many jurisdictions. These contracts are put in place to balance risk. The recent offshore wind energy auction had bidders bidding in at a price point at which they believe their product can make returns on investment and which allows them to use their own funds and funds borrowed from banks to make their project whole. There is a balance of risk there, but if the market price gives a little bit more, they compensate. Thus, they receive what they expected to get. If the market price gives a little bit less, they are compensated for that.

Bidders still set a price point at which their business can make the required returns on investment to have their project be made whole, repay debt and make a return on their finances. When they calculate that price point, they consider the amount of money they will spend on the wind turbine, with regard to the manufacturing sector. They consider the amount of money they will spend on the wires and on construction of those ports and harbours locally. They take that consideration on board, decide how much it will cost and put that into their price bid into that auction. The contract for difference still has them bidding at a price that is appropriate to their project and it compensates either side of that to make sure that is the price they receive. Unfortunately, this time around, I did not read Dr. O'Connor's article. I will be sure to do so later. If what he was referring to was the overall investment required, such as investment in ports and harbours to make sure we get different types of value out of the industry, we would be supportive of that.