Enda Kenny (Mayo, Fine Gael)

I thank all Deputies who contributed to the debate on this Fine Gael motion, which has called for a review of the regulatory arrangements that apply to the cost of energy and to the huge price increases in gas and electricity, and which seeks to allow the Oireachtas to call on the regulator to initiate a review at any time that the Oireachtas so decides.

Householders and consumers who are affected by the man who comes down the chimney at Christmas time can now expect to find some other things dropping through the letter box, such as increased ESB and gas bills. This is now a high-cost country and it is becoming increasingly uncompetitive for big manufacturers that use a lot of energy. Last week I highlighted a case involving a major employer, with 1,000 employees, whose ESB bill will rise by €800,000 in the next 12 months. At the same time, that company was able to sign an agreement for oil for the next 12 months at 22% below the cost price of six weeks ago, as these things are predicated by the world market. A major multinational company cannot pass on that increase to its customers. If this continues, American business will deal with that by walking away. When one considers that industry in Malaysia or Indonesia can employ ten times the number of workers in Ireland for the equivalent of the same wages, then energy cost increases spell out a very serious challenge for the Government. It creates great difficulty for manufacturers and employers.

Everyone obviously knows that energy issues and the green agenda have become mainstream, and one wonders whether the Democratic victory in the congressional elections will force a re-examination of US attitudes to the Kyoto Protocol. It remains to be seen what will happen regarding Japanese, Chinese and Far Eastern problems. However, to put it in an Irish context, there are the double pipeline coming in on the east coast, Kinsale Head feeding in on the south coast and another pipeline to come in from the Corrib field, which I hope can be harvested in accordance with the highest standards of safety, integrity and environmental care, with no disregard for human life. There is also a company that wishes to build a liquid natural gas facility in the mid-west, something that may happen within the next ten to 15 years.

That gives this country energy options, but the regulatory regime to which Deputy Durkan's motion refers requires far more transparency and a greater flow of information so that small and medium-sized enterprises, larger businesses and consumers can understand what fluctuations in world oil and gas prices we face. As the Minister of State, Deputy Browne, will be aware, liquid natural gas facilities have now created what one might term "mobile pipelines", in that carriers can now transport frozen liquefied gas all over the world. In that sense, other countries have moved far ahead of Ireland.

Speaker after speaker highlighted the severity of increased gas and electricity charges, which will place a great burden on households this winter and for the coming session. What the motion in Deputy Durkan's name calls for is very clear. As an interim measure, we must provide that the Oireachtas compel the regulator to instigate a review of prices at an appropriate time, if that be deemed necessary, and a full review of regulatory regimes. That is in the country's interest, since as surely as the Minister has responsibility for the matter, the industries that I mentioned are extremely concerned at their bottom line, which is being put under serious pressure by such massive increases in gas and electricity prices at a time when it is available much more cheaply or even given away in other parts of the world.

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