Catherine Murphy (Kildare North, Independent)

This Bill attempts to do several things, many of which are requirements under EU directives. It is reactive in that sense. Much of the Bill is about the extension of functions. I welcome the mechanism for an all-Ireland approach to energy which is sensible and meaningful. However, I wonder whether it is an academic exercise given the looming energy crisis. We may have great institutional arrangements and high safety standards but no gas to put in the pipelines. That is the key issue and the Bill does not address it.

This Bill allows for the regulator to determine price. That should not give comfort to anyone because the price will be determined by the amount of gas available and, consequently, the amount of electricity available. Producing electricity from gas is probably not the most efficient form of generation. If supply is insufficient, the regulator will tell us how much the increases are rather than determining the price.

The 25% increase in gas prices last winter is having a knock-on effect on families. Only when it starts to affect industry and competitiveness, however, will the penny drop because the economy is centre stage. Many families are strapped because these increases have significantly affected their finances.

Ireland and Europe face an energy crisis. The February newsletter of the Association for the Study of Peak Oil and Gas, ASPO, stated that western Europe uses 50% more gas than it produces. European imports of gas increasingly depend on Russia which earns five times as much by exporting gas as it would on the domestic market. This in turn causes significant problems in Russia which is not a guaranteed and stable source. For example last winter there was a cold spell of approximately -40° C which interrupted supplies of gas to western Europe. The writing is on the wall. The ASPO newsletter makes stark reading and gives an insight into the problem we face.

The Bill extends the function to the Minister in the event of a sudden crisis but we need to anticipate a chronic crisis because that is predictable and will lead to a sudden crisis. Although the Bill does not cover oil supply, most of us recall the 1974 oil crisis when lines of cars queued for a few gallons of petrol. Given the increase in the car population and the inadequate public transport system, a similar crisis today would not only affect domestic supplies, industry would not be able to function. This is predictable.

We need to get real about supply and the first area to address is energy conservation. We can act on that today but we need a strategy for reducing waste. We also need to identify new energy sources. Renewable energy must be the first object of our attention. The possibility of harnessing wind energy has already been pushed into the future. Agriculture too has a role in providing fuel products for industry. We need to continue to explore for offshore gas but events such as those in Rossport cannot continue if communities near those finds are to feel satisfied and safe about the finds. It is important that this issue is concluded satisfactorily.

We have a culture of creating a crisis, not only in respect of energy but in many different ways. We seem to like creating a crisis then trying to resolve it.

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