Micheál Martin (Cork South Central, Fianna Fail)

The document my Department produced is a contribution to the debate and, in particular, to the review the Minister for Communications, Marine and Natural Resources has initiated. My Department has no responsibility for how the market is structured, how it evolved or how it can be reformed and developed. Control of these issues has been transferred to an independent energy regulator and that must be accepted. Also, in terms of the strategic developments in the market, EU directives govern that development.

That said, our concern and that of Government is the impact on competitiveness. The Deputy is correct to draw attention to the deteriorating competitiveness position in terms of energy pricing that we have witnessed over the past five or six years. There are counter arguments as to why this happened. Various arguments have been put forward by the ESB and others citing, for example, the historic under investment in both the generating and transmission infrastructure over a 20 or 30 year period. That is one argument cited for the rapid investment in recent times. The ESB has been trying to ensure that capacity is at a level that meets the significant rise in demand that has occurred as a result of the very dramatic growth in the economy over the past five or six years.

We are conscious that the cost of electricity for an Irish industrial user is approximately 40% above that of a similar UK firm. That is a matter of serious concern to the Government. It is obvious the Minister for Communications, Marine and Natural Resources had that clearly within his sights when he initiated the review. He is conscious of the concerns. It is obvious the members of the Government work collectively and coherently on issues of this nature, which are of national importance.

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