Tommy Broughan (Dublin North East, Labour)

The price of electricity has increased by well over 60%. What benefits have accrued to the people to date as a result of the Minister's handling of deregulation? Why should we be happy with the prospect of breaking up the ESB company, or atomising it, as the Minister said?

Why has the Minister produced a policy on the transmission network, rather than the distribution network? What will happen to the distribution network? The Minister's White Paper states it will have to be priced in a cost-neutral way that will have a major impact on the finances of the ESB. This sector can be compared to the communications sector — the transmission network is like the backhaul and the distribution network the local loop. Does the Minister accept that if he proceeds with this policy, it will be completely crazy from every point of view?

The Minister referred to the report produced by the ATGWU and Mr. Brendan Ogle which states clearly that the ESB's labour costs have decreased over the last five years from 22% to less than 16%. The report points out that these costs are in the middle rank of such costs in the 15 pre-2004 EU member states. Labour costs are higher in Belgium, Austria, Luxembourg, Germany and the United Kingdom. Given that the United Kingdom — the only country said to have a fully liberalised market — has higher labour costs than Ireland, what is the point of all of this?

The Labour Party is bitterly opposed to this proposal which will lead to the privatisation of the ESB which the Minister is utterly determined to facilitate. This measure is the Trojan horse that will allow the ESB to be smashed up. We will no longer have energy security as a result of the break-up. Ireland will be deemed to comprise the north-west electricity market. The native company will have approximately 7% of market share. For that reason the Minister should not have proceeded with this process.

I will conclude by reminding the Minister of the dangerous situation that recently developed in Germany and Italy. The actions of a person working on a pylon in Germany caused a black-out in northern Italy for between 24 and 36 hours. If the Minister proceeds in this manner, he will leave us in a similar position. It will be another one of his very bad legacies. We will continue to oppose this proposal vigorously.

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