Billy Kelleher (Cork North Central, Fianna Fail)

I welcome this opportunity to speak on the Bill. It also gives Members an opportunity to speak on the broader issues of energy, conservation and how we progress as a nation. Interest is shown by the number of speakers on the Bill. Many people alluded to the problems this country and the world will face in years to come because of our dependence on fossil fuels.

While I acknowledge the major concern which now exists, much of it is driven by financial reasons and the fact that the price of oil has substantially increased in recent times. It seems like it is set on an upward trend. That has concentrated people's minds which, in itself, is positive because at least it encourages people to examine alternative ways of addressing the future energy crisis.

Ireland has probably been very slow in understanding the need to move away from fossil fuels and our dependency on imports of oil and gas. Our consumption per capita would be judged as very dependent. We provided for hydroelectricity at an early stage of the State's existence, but we seemed to stop and gave no further consideration to innovative ways of delivering energy to the people other than importing oil without addressing other issues.

I must pose a question on energy consumption. If we oppose nuclear energy on moral and ethical grounds, is it right for us to import electricity generated in nuclear stations in other European countries? As a country, we highlighted our view that nuclear energy could impact on mankind for generations to come. However, we are willing to sit at home by our electric heaters and watch our televisions possibly using energy produced in a nuclear station in another part of Europe.

It is the same ethical principle as the arms trade. A neutral country which condemns the arms trade should not allow any company based in the country to get involved in that activity. A recent report recommended that Ireland should examine a nuclear option to address what will happen because of the future shortage of fossil fuels. We should debate that. Years ago we protested in Carnsore Point when it was proposed that we place a nuclear plant there. There is a strong feeling that we should not engage in nuclear power. We should debate whether it is ethically or morally right to purchase electricity. The liberalisation of the electricity market in Europe is becoming a very pertinent issue. While we condemn nuclear power out of hand, we are happy to use the energy from it generated in other countries.

This country has a great opportunity to develop wind energy, wave energy, solar power, biofuels and biomass. We have the innovation and we have built up an entrepreneurial instinct to come up with innovative ideas on the provision of alternative energies. Encouraging innovation needs assistance from the State on a number of fronts, such as tax exemptions or reliefs. We have major potential for wave and wind energy.

Regarding wind energy, we have a dilemma in that while it is positive from a position of protecting the environment from global warming, windmills and turbines have a visual impact on communities and scenery. Most wind energy projects seek planning permission in scenic areas on the western seaboard in high ridge mountainous areas. Guidelines and guidance must be brought forward on how one applies for planning permission for windmills and turbines. This should be given to local authorities and An Bord Pleanála. One regularly reads in newspapers that an application for a windmill or a wind farm has been rejected by a local authority or an appeal to An Bord Pleanála has been turned down.

If we keep turning down applications and do not allow wind energy to become part of the solution to the problem we face, it creates a poor base from which to start. We must have real debate on how we provide alternatives. I am sure if applications were made for wave and tidal energy, we would have similar difficulties. That refusal saps people's abilities to develop wind energy farms. I am not sure whether they must be placed on high ridges on the seaboard. In other countries they also seem to be near the coast.

We could come up with imaginative ideas which would protect us from our dependence on fossil fuels and, as important, protect the scenic amenities of the areas in which they are developed. The councils do not have the expertise or intimate knowledge to adjudicate on planning applications for large-scale wind energy farms as many planners deal with normal planning applications. Perhaps this could be included in the Planning and Development (Strategic Infrastructure) Bill in terms of a certain number of turbines.

We should be able to exploit wind energy but it does not seem to be getting off the ground as quickly as we would like. Much of it is owing to difficulties and objections at planning stage. I understand why people object. However, if we are to progress, we must have clear guidance. Perhaps if this debate leads to further debate, guidelines will be drawn up and local authorities will be instructed on how to approach them. If it is Government policy, An Bord Pleanála should be encouraged to support applications. We must also have balance with the sensitivity of scenic areas.

Previous speakers referred to solar power. I recently built a house and I must confess the only action I took to address dependence on fossil fuels was to ensure it had good insulation. Other than that, the traditional oil burner went into the garage and the traditional radiators went into the house. Local authorities should give thought to encourage the examination during the planning process of alternatives such as solar panelling on roofs and wood burning. A person submitting a planning application could be asked whether he or she is considering solar panelling, wood burning or other alternatives which are not fossil fuel dependent. That would at least make people aware. Often when people are building a house, they may be more concerned about their mortgage or the spiralling running costs that could come about. Long-term planning of how to heat the house and water may be far down the list of priorities. There could be some encouragement in the planning process for people to examine that option, and architectural and engineering firms have a role to play as well. The issue should be to the fore in the initial stages of planning a house or a scheme of houses.

Huge building projects are taking place with 80,000 units being built per year. Houses powered with solar energy or which have energy-saving measures built into them are few and far between, if one discounts the regulations they are obliged to meet anyway. The Minister has recently announced grants relating to greener homes, which is welcome. The issue should be encouraged. With many people, the priority is to construct the house and they may be struggling through a planning permission process which is laborious and tedious. They may be facing a big mortgage. and the idea of energy-efficient housing is far down the list of priorities.

The all-Ireland energy market is an area relating to issues such as the Good Friday Agreement and the need for cross-Border co-operation. We spoke of key areas, such as agriculture, tourism and infrastructural development, in that respect. Energy would clearly be a high priority. As time goes on, the liberalisation of the markets can only be beneficial to the consumer and it will ensure we are a cost-efficient economy. It will ensure we do not have spiralling fuel costs other than normal global rises. There would be no inhibiting factors in ensuring that we could get gas and electricity at the most cost-effective price possible in the open market. This has been a positive step and I commend the Minister on bringing this Bill forward and ensuring that we set up a commission to adjudicate on these matters.

I wish to refer to biofuels, an issue on which there has been much discussion in recent times. It was brought to the fore recently as a result of the closure of the Mallow sugar beet factory in County Cork. The question has arisen of whether beet can be converted into biofuels. I have a cutting from an interesting newspaper article from Spain entitled "Deadline is near for bioethanol wheat contracts". A Spanish company is producing bioethanol from wheat.

I have done some research on the Internet and spoken to some people who have a greater knowledge of biofuels than I. We should explore the use of crops such as wheat, oilseed rape and potatoes in this manner. We know definitively that we will run out of fossil fuels. If we had the foresight of knowing we were going to have a vibrant economy with large budget surpluses, we may have started our infrastructural development some years earlier than we did. Now we are trying to play catch-up.

With regard to future generations, we must become innovative and encourage the idea of biofuels. There are large tracts of land which are under-utilised because of surpluses and quota restrictions, etc. This is a key area which we should consider. The company in Spain, Abengoa, is even importing wheat for this purpose. It has been looking to the UK for wheat growers.

We must explore the area of biofuels, and I know the Minister is supportive of this and there is goodwill towards the issue. Any difficulties and obstacles to progress in the area should be lifted as quickly as possible to allow innovation and allow such fuels to become cost-effective. Speaking to people who are trying to develop biofuels, the biggest problem appears to be the economies of scale. These people need to reach a certain economy of scale whereby the producers can become cost-efficient and profitable in providing alternatives to fossil fuels.

Bus companies, Iarnród Éireann and others, such as local authorities with large fleets of vans and trucks for carrying out work, should be encouraged to use biofuels. Dublin Bus, for example, belches out fumes on a daily basis in the inner city. These key areas, where it is known that a certain amount of fuel had to be delivered to Dublin Bus or Cork County Council, for example, should be considered. These bodies could become innovative, investing their money and knowing that at least they have a good chance of getting a contract. They could reap rewards on their investment.

That is a difficulty at the current time. There is no point in discussing the matter unless we can get those economies of scale. Currently we have people scratching at the surface trying to develop the area but still caught because they cannot get companies to take on biofuels on a long-term basis. Cork City Council has been innovative in that area, and the park and ride buses which Bus Éireann runs for the local authority are run on biofuels. This is a positive step, although it is only a few buses. It is a start, but we must be really imaginative in encouraging local authorities and bus companies to use biofuels. Obstacles should be removed.

With regard to the Bill, previous speakers have mentioned the need to ensure safety in the provision of services, which is important. This Bill deals with certain aspects of that matter. While we have a liberalisation of the market, it is equally important to have a system in place which can monitor and ensure works carried out, with electricity or gas installations, for example, comply with certain safety standards. I am sure the Minister, those who drafted the Bill and everybody else involved knows this as an issue of concern. We do not want to alarm people, but the issue of safety should always be to the fore.

I commend the Bill to the House. It is clearly necessary in the context of what is taking place in Europe and the liberalisation of the electricity market in 2007. It is time for us to consider our dependence, as a nation, on fossil fuels and imports of oil. We may be hoping that, next week or next month, there will be news of a discovery of a huge oil field in some part of the world and that oil reserves will be there for another five, six or ten years, meaning there is no immediate need to switch to other fuels. That is just prolonging the agony in a way. If we are to be innovative and have a hands-on approach, we should begin to encourage the use of alternative resources.

I mentioned the issue of nuclear power earlier in the context of morals and ethics. We should have a debate on it. Many people speak emotively on the issue because of what happened in Chernobyl and as a result of the strong commitment we have had since the protests at Carnsore Point in the 1970s. We should find out more about the issue so that we can inform people about the concerns and have an informed debate. I am not stating I am in favour of nuclear power, as I have already highlighted ethical issues relating to its use.

An informed debate would also be welcome with regard to incineration. Incineration is often debated in an emotive way, and emotions can sometimes be irrational. We should have a genuine and informed debate on the matter. I support the principle of incineration because I do not believe that we can, as a country, continue to export waste to other countries. Following the polluter pays principle, we should deal with our waste. I am concerned that incinerators encourage people to burn waste that is eminently recyclable. I worry that, rather than reusing and recycling, people will go back to throwing everything in the bin to be incinerated. I ask the Minister to avoid feeding the monster of incineration, as has happened in other countries, at the expense of recycling, where people separate their waste into two or three bins to leave out on different days for the local authority or private collectors. Incineration is not designed to allow people to throw everything in the bin, eventually to go up the chimney. It should be used sparingly and only for waste that cannot be reused or recycled.

I commend the Bill to the House. I know the Minister is committed to biofuels and other alternative energy sources and that over the next year or two some guidelines will emerge on the issues to which I have referred, particularly on wind energy.

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