Enda Kenny (Mayo, Fine Gael)

The next decade will see massive changes both within Europe and on a world scale. We will have two American presidential elections and whatever the American people decide will bring a consequent attitude towards foreign affairs and places outside the United States. The current difficulties between the various factions within the Islamic world, Sunnis and Shias, the question of Iran and Iraq, the geopolitics of Kazakhstan, Uzbekistan, the emergence of Russia as a power broker in energy, both in gas and oil, and the emergence of 40 million highly qualified English speaking graduates from India onto the world market in the area of IT, engineering and chemistry etc. will all add to a mix that creates a world where it is difficult to determine our future accurately.

I find, and perhaps the Taoiseach finds the same at his meetings, that when one sits with the EPP groupings representing the different countries, not all of whom are prime ministers but some of whom aspire to that position, there is always a difficulty in agreeing what Europe should be about, as oftentimes put forward by the President of the Commission. Invariably, the different prime ministers and leaders of the various countries focus on their individual problems. I suppose it is only realistic that irrespective of where they are from, they are all politicians and represent their people and their points of view. This leaves us with a series of challenges, individually as countries and collectively as the European Union.

The issue of transatlantic trade needs to be examined in the context of the next 20 years. With $1 billion a day in trade currently crossing the Atlantic each day, I foresee a time when we could well have the evolution of a free trade area between Europe and the United States. I know this would be resisted in some quarters, but given the fact we need a strong America and a strong Europe, the opportunity for trade has phenomenal potential. The same opportunities for trade are there with regard to Latin America and Canada. The open skies agreement, which I expect will be concluded successfully, will play a significant role in this area. It will probably lead to huge increases in air freight and offer potential to regional and national airports here.

We have never measured up to the targets set following post-Kyoto negotiations of a 30% reduction in emissions of greenhouse gases. While the targets are ambitious, they are achievable. We lie in 22nd place out of the 27 EU countries. The White Paper sets out targets. We are to have 15% of electricity consumption from renewable sources by 2010 and 33% by 2020. The Government must focus on three areas in this regard. We need downward pressure on electricity prices and there has been some discussion on this. The other day, a plant in the mid-west recorded that its electricity cost for last year was €1.3 million. If the same number of kilowatt hours were burned in a similar plant on the Continent, the cost would be between €500,000 and €600,000. This may not be a critical amount in terms of a large plant, but in a smaller plant it has serious implications. The Government needs to invest in renewables and to put the interconnectors in place both North-South and east-west. It has been messing around on this issue for the past ten years. The United States has developed capacity for clean coal technology and is reputed to have 300 years' supply, which will emerge in due course onto the market.

There has been a degree of concern in Ireland about the cost of unit production in industry. The Government has an impact on this cost in terms of the inflation rate, public utility charges, transport etc. This issue has become more of a concern for those involved in industry. The bottom line is important in terms of mobility of the industry and the effect globalisation can have, both from the investment point of view or the unfortunate aspect of downsizing of employment. Infrastructure and inflation are serious elements in this area.

Earlier, I outlined the gap between Europe and the United States. One of the weaknesses is the inability of European leaders as a group to concentrate and focus on improving competitive levels to where they were intended to be after the agreement of 2000 that the European Union should be the most competitive offset against the United States. We are still a long way from that. The Taoiseach will represent us at the 50th celebrations of the European Union. I hope the Union will focus on the issue of competitiveness over the next ten to 15 years when pupils currently entering secondary school will be leaders in society, innovators and entrepreneurs. From a national and European perspective, it is up to our politicians and leaders to lay foundations now on which we will be able to compete and lead over the next 25 years, a period that will be important in staking out Ireland's future as a small, important democracy, but also part of Europe.

I share the Taoiseach's view on Northern Ireland and hope this matter will be concluded by next week. I met Gerry Adams in the hall yesterday. I hope the Government will respond, possibly by the weekend, in terms of putting together a financial package for necessary infrastructure North and South of the Border. Such a package would be an inducement to the politicians to do the business.

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