Arthur Morgan (Louth, Sinn Fein)

It is appropriate that this Bill is being debated at a time when the multinationals that control all our oil and gas reserves are attempting to impose an unwanted terminal on the people of north Mayo. It is also worth recalling that the Government sought to use two inadequate reports on the safety of the Corrib pipeline to justify that project proceeding against the wishes — as was proven again this week in the TG4 poll — of most of the people in the area affected. It is also relevant as regards any debate on the overall terms of energy supplies, as briefly became the focus of debate following publication of the Forfás report last April on the future availability of oil. In that context, the possibility of nuclear energy fulfilling demand was suggested, but that has been overwhelmingly rejected by virtually the entire spectrum of political opinion across the country. That is hardly surprising in light of the enormous ongoing concerns of people regarding Sellafield.

The Forfás report refers briefly to the possibility of replacing some of our dependence on fossil fuels with alternative sources, most notably wind and wave power. There is also reference to biofuels. This is something that needs far more attention and a much more proactive policy on behalf of the State, given the importance of alternative energy and the natural advantages enjoyed by this country as regards its production. Certainly, wind power appears to be an area that has enormous potential. One report I have seen suggests that the current proportion of electricity supplied from this source could be increased to 25% of demand, with no increase in cost to the consumer. The installation of turbines would obviously require a substantial increase in the amount of land involved, but this is estimated to be at most no more than 0.5%. Given the number of suitable sites available and not currently in agricultural use, that ought not to present a major problem.

A number of wind projects are currently in operation, but some concern has been raised with regard to the awarding of contracts. It appears that one company with significant political influence has been particularly favoured. It is important, therefore, that the sector is properly regulated and that the State takes a proactive role in research and development. In practical terms, the ESB should establish wind farms. It will, of course be ideologically argued that the State should have no role in such an area. Such an argument overlooks the reason utilities were developed in the first instance under public control. It was for the simple reason that private enterprise was either uninterested, incapable or solely concerned with niche profits. There is also the fact that the country's energy needs ought to be under public control for strategic reasons. The same argument can be applied to the area of biofuels. There is enormous potential in Ireland for the production of energy crops, especially in the era of the single farm payment. That does not appear to be a problem and the relevant Departments are coming to recognise that through the various grant schemes available. This is a welcome development.

There are also issues surrounding the use of set aside land that the Minister for Agriculture and Food might usefully press at Commission level. Not only should we be capable of meeting the EU target set for the proportion of vehicle fuel supplied from biofuels, but we could lay the basis for a much more ambitious sector that benefits both farmers and those involved in processing. Unless steps are taken to encourage a strong Irish processing sector, we will in the future be just as dependent on biofuel imports as we are in the area of fossil fuels.

My party and others have put the case for the use of the former sugar factories at Carlow and Mallow in the processing of ethanol from sugar beet. This would not only provide an alternative outlet for sugar beet produced by the 3,700 growers abandoned by Greencore, it would also generate jobs. Unfortunately, the Government washed its hands of any responsibility in this matter, despite its retention of a so-called golden share in the company. It would appear the only golden shares in Greencore are those that are in the portfolio of the property developers who took over what was once a thriving business in order to strip the assets and make a huge killing through the building of overpriced apartments.

I urge the Minister as part of the review of the energy sector to encourage indigenous renewable energy sources and, of course, to review the current terms and conditions governing the control of our oil and gas reserves.

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