Seymour Crawford (Cavan-Monaghan, Fine Gael)

I thank Deputy Durkan for providing this opportunity to speak to a very important motion, namely, the urgent need to review the regulatory arrangements which have resulted in approval of huge price increases in gas and electricity at a time when international energy prices are falling.

I will raise a different but related issue. How can the Government justify providing grant aid for the installation of storage heaters in the homes of the elderly and disabled yet allow the ESB to charge such individuals €800 or more for connections? The ESB claims it needs heavier wiring to install such heaters and the elderly must pay for it. I attended the launch of the Society of St. Vincent de Paul annual review last week and its members spoke of how elderly people in particular had to deal with crippling ESB arrears. Only yesterday I attended the annual general meeting of the Irish Co-operative Organisation Society and one of the main issues raised at that conference was the cost of energy, which is causing serious problems for the entire food industry.

Some people in this House are not very worried today about agriculture or the food industry. They believe their best options are in the property market and the benefits that can accrue from it. However, agriculture and the food industry are still extremely important. The food industry is one of the few industries that can provide a base in rural Ireland and much needed employment. Also, the raw material is available on the ground.

It is difficult to explain to those involved in the food industry how the Government can allow the price of gas and electricity to increase so dramatically out of line with our nearest neighbours. There is at least a 20% difference. Many food companies have industries in the UK and other areas and know at first hand the significant difference in price and how this affects their competitiveness. The fact that the price of oil has decreased on the international market makes it vital that the change we seek tonight is introduced immediately and the price here is re-examined.

Last year I asked the Government to look specifically at the possibility of a change in its VAT take on electricity and gas as a small gesture towards industry and the private sector, but it ignored my suggestion and said it was impossible. In the year 2005, the Government took in €223 million compared to €116 million in 2001. It is clear that at the current rate of VAT, the Government will collect up to €360 million this year, yet old age pensioners and those on disability payments cannot raise the necessary lump sum to fill their oil tanks.

The Government failure to encourage alternative energy production is also part of the problem. It has produced many papers on the issue, but many people interested in alternative energy have had to go to Scotland and other places to produce power abroad rather than here. These are facts. I have talked to those involved in the industry and know this is the case.

The past ten years have seen major improvements in employment here, especially in the building industry, but many jobs have been lost in manufacturing. Unfortunately, this trend has escalated due to the Government's failure to deal with the energy crisis. It is vital that action is taken and that the regulator's proposal to increase electricity prices on 1 January 2007 is dealt with and that we ensure our prices are no dearer than our European counterparts.

The current situation is untenable. I urge the Minister to take whatever action he can on the issue. He can do it through VAT or through the regulator. He has many options. He is in control and should show that.

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