Dick Roche (Wicklow, Fianna Fail)

That point can be made, business to business trading costs will be higher than that but state to state trading figures are used in calculations. We have been clear on the methodology and the projected figures.

We must create a balance that allows us to achieve our targets in the most cost effective way, not just in the cheapest way in the short term but in the medium and long term. That is why we have targets and why we are encouraging larger energy users to be ambitious. If they are ambitious, not only will they save costs but there will be benefits in terms of credits that come their way. We must make decisions and they will be difficult, with sectors in the economy making a lot of noise in the next few weeks as we move forward.

We must do our bit, as must every other country, and I do not accept the general view that buying credits, one of the options available under Kyoto, is an inefficient way of dealing with the problem. It is a way to deal with the demands facing an economy growing at the rate ours is. In the long term we must adopt a position where a variety of individual approaches will resolve the issue, including energy efficiency in buildings and the introduction of new technology, including biofuels and alternatives. There is not just one single way to achieve this, it is a complex issue. I discussed this with Cabinet colleagues today and we are determined to meet the targets that have been set for us.

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