Paul Connaughton Snr (Galway East, Fine Gael)

I compliment Deputy Durkan on tabling this motion. Much has been said over the past two nights about the future of energy prices. To put it simplistically, there are certain things in this country that we cannot change, such as the fact that we do not and will never have oil wells. We must all accept this. It is awfully hard to bring in the bit of gas we have. I do not blame the Government for what we cannot change, and nobody else is doing so. This is not where the problem lies.

Given the great increase in the use of oil for industry and transport throughout the world, we know the oil wells cannot keep pumping forever. I have no idea when the oil will run out — every expert has his own view — but we know Ireland has many resources that many countries would give their left hand for. Until very recently, there was hardly a word about them. I have not time to discuss them in detail because I want to deal with a more central issue. Suffice it to say, simplistically, that we did not tackle wind or wave energy to any great degree and we certainly failed to encourage the growth of any crop that might produce oil. I have seen crops used for this purpose 20 years ago and there is nothing new about doing so. The economics of growing them can be difficult under certain circumstances, but we must ensure we use our available natural resources to create energy or fuel. This is a broad-brush approach.

Let me discuss the factors within our remit. This subject follows on what Deputy English and others have been speaking about. I may not be an expert on the world oil market and I am not sure many are, because they all seem to get it wrong on occasion. When the regulator made its decision, or slightly before it did so, I was foolish enough to believe it assumed the price would plateau at approximately $70 to $80 per barrel. I believed its decision was predicated on this assumption and could not see any other reason for the remarkable increase in fuel prices. When the regulator's office was established, I genuinely believed it would be very independent, and I have no reason to believe otherwise, but I believe it was assumed at the time of establishment that there would be a steady increase in oil prices, as we were used to over the years. This did not happen.

The whole country held its collective breath on the morning the decision was made. The issue was well flagged before the regulator announced it. When the 20% increase in the price of electricity for domestic consumers, the increase in the price for commercial consumers and the 34% increase in the price of gas were announced, I remember saying to myself the country was in for a terrible time. It is very difficult to sustain such increases. Naturally, on hearing the decision, I examined the increases in other countries. We are a good bit ahead of them at this stage and that is where the problem lies. This is where our anti-competitive aspect kicks in. It would be acceptable if every other country were subject to similar increases because we must compete with them on the foreign market, but they have not had such increases. If we had no control over this, I would have nothing to say about the matter because I am as realistic as the next person. One must pay the commercial rate that obtains in the rest of the world.

Yesterday, on Tuesday, 7 November at 3.15 p.m., I saw fit to check the Internet for the price of Brent crude oil in dollars per barrel. I assume the figure I obtained, namely, $55.21 per barrel, is as official as one can get. This is a base price and prices all over the world are relative to it, although there are some jigs and reels to be danced around it. If it was $75 per barrel, there would be a different reaction all over the world.

I had always understood that when dramatic changes took place in the energy market, the regulator was entitled to reconsider existing prices. The Government might argue, as it does in respect of the HSE and other bodies, that it has nothing to do with the decisions of the regulator, but this is not acceptable. Energy prices comprise a vital national issue and no other issue will take centre stage in the next ten years. Energy prices are central to our competitiveness and if we do not get them right we will be in serious trouble.

I met a lady yesterday who received a bill of €60 from the gas company. Admittedly, it was not a very large bill. When she examined it, she noticed that €48 of the €60 was accounted for by VAT and other charges. She used just €12 of gas, but she was charged €60. We cannot continue to fleece the people of Ireland in such a manner.

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