Bernard Durkan (Kildare North, Fine Gael)

We should begin by identifying the sequence of events regarding energy prices in the past year or so. Political instability throughout the world, tempests, storms and hurricanes affected the availability of oil, gas and fuels in general, but any close observer of the industry would have noticed an abundance of those fuels on international markets in the past six months. The knock-on effect was an obvious necessity for prices to reduce. Despite the best efforts of those with vested and financial interests in the oil and gas industries, such as stockbrokers, financial services centres and oil companies, to talk up the prices of oil and gas during a long period, those prices reached a zenith and began to fall.

At a time when the price was on a downward trajectory, there were sounds from the ESB and Bord Gáis seeking price increases. They were bound to do so if they could get the increases and I do not blame them for that. The regulator, having duly considered the merits and factors of the Bord Gáis case, decided to approve serious gas price increases of 34%. However, gas was available for free on the London market that day. The decision was extraordinary against such a backdrop. Despite everyone's best efforts to talk up the price and declare a shortage, gas was free. None the less, the price here was increased.

Similarly, the ESB believes a price increase is merited, but this depends on what the Government has in mind for the ESB. Does it want to fatten the ESB for sale like a number of other semi-State and State bodies and make consumers continue to pay through the nose? A significant price increase has been awarded for 1 January 2007, which will be a major hit on consumers heavily overburdened with child care costs, commuting costs, mortgages, interest rate increases and so on.

A number of events will take place between August 2006 and June 2007, hidden in the middle of which will be two considerable hits on consumers if this is allowed to continue. I have spoken about what will affect domestic consumers, but the costs for industrial consumers will undergo a major hike. Regarding the effects on manufacturing and service industries, my colleagues rather than I will go into the same level of detail as the Joint Committee on Communications, Marine and Natural Resources. I am amazed and appalled that the Minister allowed the regulatory system to take an action of this nature against consumers when they can ill afford it. The increases will affect competitiveness. Some 34,000 jobs have been relocated from our economy because of a lack of competitiveness. If this is allowed to continue, we will lose more jobs. The Government's much vaunted high-wage economy will be for naught, because our manufacturing jobs will be located elsewhere. Where will the Government's accidental high-wage economy be then?

I want to dismiss in its entirety the ráiméis of the Government's amendment to this motion because it chronicles the Government's failures in recent years, including its failure to develop and invest in proper alternative energy resources. We recognise that 90% of our energy is imported. In the past five years, the Government should have invested money in research and development to ensure we put in place alternatives, become economically independent and provide from our own resources a major amount of the energy currently imported. It would have made good, sound economic sense.

The Minister has a number of choices, namely, he can tell the regulator that the increases are not currently sustainable and that he needs to know more about them or he can dismiss the regulator. The regulatory system affecting consumers, industrial or domestic, is not working. The Minister could declare there will be no more increases without his authority or he could abdicate his responsibilities and do nothing, the consequences of which would be colossal. I say this in due deference to the Minister to give him a fair warning about the consequences.

For some unknown reason, regulation in Ireland seems to drive up energy costs and make people compete at a higher level. My colleagues will go into detail on our energy costs compared to other European countries. The difference is significant and I leave it to the House to consider the matter.

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