Bernard Durkan (Kildare North, Fine Gael)

I thank the Minister for the important briefing received from his officials and acknowledge the importance of this unique piece of North-South co-operation that will be of benefit to both parts of the island. I accept that the all-island market will be of benefit and that economies of scale, of which both sides can avail, should ensue.

It is important in these situations that the ground rules be recognised and consumers North and South of the Border are of the utmost importance in this matter. I hope joint ownership of the market, for want of a better description, does not see daft decisions made such as the gas and electricity price increases we have seen in recent months despite the opposite occurring internationally. I do not know how this can be justified and I hope no attempt is made to justify such actions in future. The Department of Communications, Marine and Natural Resources and the Commission for Energy Regulation, CER, have been making noises in recent weeks suggesting this issue is still being examined, despite the circumstances mentioned existing for some months. I hope there will be unison evident in the actions of the two sides involved to the benefit of the consumer.

Another element to this issue is the benefits that will accrue from the availability of more interconnectors and there will be North-South interconnectors in addition to east-west interconnectors. These interconnectors will be hugely beneficial to the operation of the electricity and gas markets in this country but it should be recognised that the UK already has access to the nuclear sector. That is what they have done traditionally and it is fine, but we should not use this new situation as a means to slow the development of alternative energy sources. In terms of economic independence and integrity regarding the grid we must be mindful that easy options in the North-South market could slow development of the alternative energy sector. I do not doubt this would be the Minister's intention but we must be forceful about it because people tend to take easy options when the going gets rough. The easy option would be to draw on the cheaper electricity generated by nuclear energy in the UK and Europe. This would not be good for the country but, more importantly, we must ensure we proceed with the development of the alternative energy sector.

There are many forms of alternative energy and I am aware that environmental issues arise whenever any type of energy is generated. Some say wave generated electricity will affect the development of shores and sand bars and they are correct. We can develop fuels for transport that will reduce emissions, as is required and as was mentioned in discussions on the previous Bill that came before the House. Emissions will never be removed entirely but we can improve the situation dramatically and as science progresses it is hoped ways can be found to reduce the environmental impact of energy usage generally.

I am sure the Minister of State at the Department of Communications, Marine and Natural Resources, Deputy Browne, was astounded when the Minister for the Environment, Heritage and Local Government, Deputy Roche, said today that the Common Agricultural Policy, CAP, reforms had been hugely beneficial to the environment because they closed down the agriculture industry. He was referring to the food export industry on which this country depended. I had the fun of hearing a European Commissioner in the House telling us how lucky we were to avail of the benefits accruing from reform of the CAP. That is total rubbish as the Minister of State knows.

The beef industry in this country was the backbone of the agricultural sector for many years and the day is fast approaching when the European consumer will find insufficient stocks to meet requirements. To put things in perspective, this country has approximately 7.5 million bovine animals while in Argentina that figure is 90 million and in Brazil it is 180 million. If Ministers for Agriculture in Europe wish to get their acts together they should, at least, be realistic about what they are doing and ask themselves how much impact they are having by dealing with the situation in this fashion.

I wish to refer to other forms of alternative energy that are readily available and can and should be developed in this country. There are sewage treatment plants all over the country and many of them are spilling into rivers as we speak. They often stink to high heaven with methane gas pouring into the atmosphere, for ten years in some cases. I do not understand why something is not done about this. I was doing my rounds in August, as we all do, and got out of my car in a village where I was overpowered by the level of methane gas. When I inquired I was informed the local sewerage scheme had broken down and the whole community, for a ten mile radius, was inhaling what is a form of energy.

If we are to make this electricity market work we must examine the alternatives and develop them to the best of our ability without taking the easy option to escape reality and make excuses when things do not happen. This is a good Bill which will have tremendous benefits, specifically in the area of North-South co-operation. Nevertheless, the Fine Gael Party intends to table a number of amendments on Committee Stage.

Enlarging the energy market and delivering economies of scale do not offer complete solutions because both parts of the island will need to significantly develop the energy sector in response to population and economic growth. I hope the peace process will continue on track and deliver major economic benefits to the country. Many citizens do not realise the contribution the peace process will make to economic development. However, economic growth will also increase demand for energy.

Economies of scale must be borne in mind. If Ireland had the same population density as the Netherlands, our population would be approximately 48 million. With such a population level, our energy requirements would be massive.

Research and development must continue if we are to expand the energy market and meet the energy requirements of our citizens. The United Kingdom and many more of our European partners have defined their future energy strategies. Some countries have achieved significant expansion in the alternative energy sector. The mix of energy our partners will use to generate electricity includes conventional fossil fuels, gas, wind and nuclear power. Approximately 80% of France's electricity supply is generated by nuclear power plants. It is important to note that the approach taken on the European mainland may not work as well here.

It is good that the electricity grid will be jointly operated by the Northern and Southern authorities. We must sing from the same hymn sheet and ensure prices are not arbitrarily increased in either jurisdiction. Prices must increase or decrease as the market demands, having due regard to the needs of industrial and domestic consumers.

Security of supply and the integrity of the grid are essential. I do not accept that other countries are better equipped than we are to address this issue. Irish energy producers have coped with supply problems in the past when they received the necessary support. Grid operators on the Continent have failed to maintain electricity supply at least twice in the past 18 months. Only a few weeks ago, large parts of Germany, Italy, Spain and other mainland European countries experienced a major power outage, despite having well-run grids and excellent information available to grid controllers and regulators.

While regulators are necessary in an expanding electricity market, the purpose of regulation is to give the consumer the benefit of competition.

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