Fiona O'Malley (Dún Laoghaire, Progressive Democrats)

This is a welcome Bill. Energy has shot to the top of the political agenda as a result of the crisis that arose over security of supply, particularly the conduct of Russia and Ukraine and the closure of the pipeline. The Minister's reference to the Government's evolving energy policy was a nice choice of phrasing. It is evolving and that is welcome. The provisions in the budget last year were particularly welcome and I look forward to more of the same in the next budget.

The Oireachtas committee is due to produce its energy document. We put a great deal of work into that. The Minister is also due to produce an energy document which we await with great anticipation. The Opposition has criticised the Government throughout this debate but I attended a conference yesterday on future energy and contributors to the conference commended the State for its foresight in preparing to deal with the issue of peak oil production and what that will cause. Only Ireland and Sweden have produced documents on peak oil production and how to deal with it. The Forfás report was welcomed as a testament to the forward thinking of the Government. It is one plank in the Government's evolving policy.

The most important aspect of this Bill is the redefinition of the role of the CER. I have been an active participant in the Oireachtas committee examining the energy issue and the single consistent issue we have encountered is criticism of the commission, from politicians on the committee, independent energy suppliers and, at times, the Minister. The provisions in the Bill which provide for the Minister to instruct the CER on policy are extremely welcome. Some of our problems arise from the moratorium that was placed on the wind industry by the CER in December 2004. We are only now feeling the results of that. At recent meetings of the committee, more independent suppliers have complained about this difficulty.

Indeed, when the committee asked the commissioner for justification for this, he was a little shy in telling why he had chosen to do this. He could often hide behind his role as it was defined in the 1999 Act so the new provisions in this Bill are most welcome. Members would prefer that somebody who is responsible to the House, in the person of the Minister, give the policy directions and give answers to the House.

I have been looking at the role and the function of the CER. In correspondence I have seen, the CER indicated that at times its responsibilities were sometimes in conflict with each other and the question was prioritising them. Political direction could not be given prior to this so, to be fair to the CER, the commissioner was doing his best. However, it is essential that there is political direction. It should come from a coherent policy and the ability of the Minister to direct the CER.

One issue that worries me with regard to how the CER has performed to date is that the choices it made about who got grid connections and so forth have left us exposed in terms of gas supplies. The amount of electricity produced from gas is alarming. It is not what it should be, namely, a moderate amount with a variety of suppliers providing the electricity. Over 50% of our electricity is generated from gas. This leaves us very exposed. When the North Sea gas supplies run out, Ireland, like the rest of Europe, will be dependent on Russian supplies. We are at the end of that supply line so we can hardly expect our needs to be looked after before those of other countries along the route.

The all-island market will deal, to a certain extent, with the dominance of the ESB. However, as we know from our recent deliberations with the CER, there is a long way to go in terms of how the two regulatory frameworks, North and South, will marry, as it were. I did not get the impression that the CER was confident that it would happen before the deadline. However, it will have to, so they will need to move on it and this legislation takes the right step.

Rather than just consider an all-island market, we need to consider a regional market for the United Kingdom and Ireland. An all-island market does not provide enough competition for suppliers and for that reason we need to expand the basis of a new market that would be available through the UK and Ireland. To do this right and to provide opportunities for our island, we need better interconnection facilities. I welcome the fact that the Bill provides that somebody other than the ESB can provide such an interconnector. Independent energy companies are keen to provide this and I hope the Minister is favourable to it.

All of us who have attended energy committee meetings know that the dominance of the ESB is a major hurdle to true competition in this country. We must take strong action and be very careful how we proceed on the question of dominance. Already we have seen Airtricity indicate the market is not viable. The question of regulation, which changes so often, and the lack of a coherent policy make it difficult for companies to conduct business here. Therefore, I hope that this Bill, by providing policy direction from the Minister, will facilitate progress in this area.

It has been said by independent providers that in the past the Commission on Energy Regulation has been hostile to renewable energies. A report in today's Financial Times answered the question on the cheapest source of energy by stating that wind power is the cheapest fossil fuel security. I hope this puts paid to the notion that wind energy is more expensive because of the issue of intermittency. I do not believe wind energy is the sole answer to Ireland's energy supply needs, but it is a source that has not been sufficiently explored.

The Progressive Democrats Party has set an ambitious target of 30% of energy needs from renewable sources by 2015. Some people may say this is not achievable. However, it is if we have the vision and will to develop it. We must have the capacity to understand the problem and the vision to seize the opportunity and provide funds through Government and private sources. I do not like the notion that the Government should deliver this on its own. If private industry is prepared to be involved — this is what competition and a liberalised market is about — we should allow it into the market.

The energy question is as great a challenge to the country as was the economy in the 1980s. Look where we are today. Who would have said that our economy would be the talk of every other country? Someone said to me this morning that it is only in this country that people think the country is going down the tubes. People in every other country wonder how we got our economic miracle together. We must recognise that this is an extraordinary country and that the challenge we faced in the economy in the 1980s was dealt with successfully.

We can deal as successfully with the challenge presented by the energy question. We are in an isolated position but we need to recognise that we are in a country that is best placed, both geographically and otherwise, to harness wind energy. The Progressive Democrats target is 30% of energy needs to be provided by renewable resources by 2015. We need to see the issue of energy as a long-term issue. I was disappointed that Deputy Ryan's suggestion of an all-party group on energy issues was rebuffed by his supposed potential Government colleagues.

See this speech in context