Denis Naughten (Longford-Roscommon, Fine Gael)

It is unbelievable to be in the House debating this issue at a time when oil and gas prices are falling internationally. We are debating proposed increases in electricity and gas prices which are making this country extremely uncompetitive in comparison to our European neighbours.

The reality for many households is that the rise in electricity prices alone will increase the bimonthly bill from ESB by 20%, or €147, amounting to a total increase over a year of €882. As domestic customers reel under the increases that have taken place already under this Government there have been dramatic increases in the costs of living, in mortgage costs, commute times and child care costs, and now there is to be a further increase in energy costs. As my colleagues have said, they are in the Government's interest because it is the biggest beneficiary of higher energy costs, owing to the VAT take, which from electricity and gas almost doubled between 2001 and 2005. It is projected that this year the Government will take in a massive €362 million on VAT alone, not including the large tax take on the profits from the ESB and Bord Gáis Éireann.

People are struggling at the moment, especially the elderly, who cannot survive. The same applies to manufacturing and the food industry. It may come as a surprise to the Government but manufacturing and the food industry are the backbone of our indigenous economy. They have been ignored in recent years because of the Government's policy but they will be the backbone of the economy in the future and it is critically important to support them.

A recent survey of small indigenous companies carried out in County Roscommon by the county enterprise board shows that one third of those surveyed believed energy costs were the single biggest issue affecting their business, yet it is ignored by the Government. As Deputy Durkan said, it is creating huge pressure. Some 34,000 manufacturing jobs have been lost and something needs to be done.

The regulators in this country, including the CER, are literally running roughshod over the domestic and industrial cost base and the ability of manufacturing businesses to operate and compete profitably is seriously undermined by rising energy costs, which are now by far the highest in Europe. Irish companies must now pay an increase of 20% on their ESB bill, which puts huge pressure on their competitiveness. It is critically important for the Minister to immediately issue a directive to the CER to ensure this increase does not go through. In tandem with that, it is about time the Government reviewed its policy on the regulator.

The Commission for Energy Regulation has deliberately increased prices in recent years, ostensibly to bring in competition, in which it has failed dismally. What has the Minister done about it? He has sat back, ignored it and passed the issue on to the CER. Energy costs are decimating Irish industry and it is critically important the Minister takes ownership of the issue. He must come out with a definitive energy policy for the future. The Green Paper on Energy does not set out the direction that needs to be taken. Fine Gael has proposed a comprehensive policy document on the biofuel industry but the only thing the Government has done for the biofuel industry is to put the kibosh on it by not allowing the sugar industry in Carlow and Mallow to develop it. Instead the Government, particularly the Minister for Agriculture and Food and the Minister for Communications, Marine and Natural Resources, has deliberately closed off that avenue when it should have opened it up.

I commend the motion to the House.

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