James Breen (Clare, Independent)

The speed at which the Minister moved to rubber stamp the price increases sought by ESB and Bord Gáis was staggering, given the snail's pace at which the Government has approached the development of renewable energy. Over the lifetime of the Government, electricity prices have risen by more than 60%. In September, an increase of one third in the price of gas was granted, based on the increase in the price of oil. However, since the summer, oil prices have dropped by approximately $18 per barrel. Why, then, does the Minister not insist on a commensurate reduction in the price of gas for consumers? The answer is simple — the VAT take on fuel has provided a major increase in funds which can be used to try to buy the electorate next year. The Progressive Democrats, who could give classes to the tail on how to wag the dog, want to make the ESB more attractive for privatisation. Higher prices mean more profits and a better selling price.

The real loser is, once again, the ordinary consumer. The high cost of living in this country will rise even further, with adverse effects on those who already struggle to make ends meet. The elderly are expected to survive on a miserly fuel allowance of €14 per week and low income families were already facing huge expenses prior to the latest increases. The job security of those who work in the manufacturing sector will be further jeopardised by the increased production costs faced by their employers, which will cause companies to move production overseas.

Given that the price of gas in our nearest neighbour is 25% lower than here, it would make economic sense for many companies to move to even cheaper locations. The Minister and the Commission for Energy Regulation should be more than mere signatories for price increases in the energy sector. They should be enforcing proper price structuring and fuel sourcing because, if garages on the side of the road can vary their prices from week to week, there is no reason decreases in costs cannot be passed to consumers on a quarterly basis.

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