Noel Coonan (Tipperary North, Fine Gael)

We do so on a regular basis.

I wish to give a guarded welcome to the Bill. Fine Gael supports its introduction, subject to some concerns it has in this regard. However, it is important to recognise that Bord Gáis Éireann is ideally positioned and well placed at present to take advantage of the financial position that has been made available to it. It should be acknowledged that it has made good use of the funding it has received or the amount of money it has been able to raise since the last time its level of borrowing was increased in 2002. On consideration of its subsequent record, there is not too much to worry about. The company has made strident progress in recent years and is conforming to a large degree with the Minister's three pillars of security, competitiveness and meeting the environment's requirements. Much of Bord Gáis's current and proposed work is helpful to the Minister in meeting his targets.

The Minister pointed out that Bord Gáis is A plus rated and has a balance sheet capable of taking on increased debt and necessary expenditure. The Minister will confirm whether its debt levels are okay. It is important that a company like Bord Gáis, led by an energetic young chief executive, be given encouragement because it is brave and, given the recession, its major plans are vital. These will not only be worthwhile to the State, but also to the domestic and small to large business sectors. It is important that a competitive element be introduced and kept alive by Bord Gáis and that it be allowed to develop and increase its role.

Given some of its proposed work, particularly in gas storage by way of caverns, it will provide security of service in the event of, for example, the Russians suffering a rush of blood to the head and cutting off supply. The construction of a 445 MW power station at Whitegate is the type of development required by the country. When others are concerned, it is good to see a company led by an energetic CEO making strident progress. As parliamentarians, we have an obligation to support Bord Gáis and to allow it to provide necessary funding, which is the main purpose of the Bill. Small businesses and entrepreneurs are finding it difficult to raise money from banks. The Minister will confirm that Bord Gáis will have no difficulty in this respect and that finance will be available for it in Ireland, Europe or wherever.

Given some of Bord Gáis's recent acquisitions, such as its €50 million purchase of a wind farm in County Galway and the consequent €50 million on that wind farm's development, it is amazing that each megawatt produced by wind farms costs €200,000. The credit squeeze is helpful to larger players like Bord Gáis, which can buy wind farms when ordinary individuals find it difficult to arrange financing to establish and maintain them.

In light of how the Commission for Energy Regulation, CER, has increased the capacity available in the next round of licensing from 3,000 MW to 3,900 MW, Bord Gáis is placing itself in a position to avail of the current capacity and to be ready to sprint during the upturn. While I do not know when that will be, it will come as surely as night follows day. Bord Gáis is to be commended on placing itself in that position.

I noted in the Minister's speech that Bord Gáis will not be given carte blanche in terms of its funding or activities. Each project must be approved by the Minister and the Minister for Finance. We should look after the taxpayer if something goes wrong. To our cost, something went wrong in the banking sector in particular. I would not want Bord Gáis joining the four Bs that have created the recession. I am not referring to four banks. Rather, I mean Bertie, Brian, banks and builders. I am satisfied that adequate controls will be placed on Bord Gáis and that its money will be invested wisely.

The Minister stated there may be no increase in consumer charges, but he should be stronger on this issue. It is essential that there be no increase in January. Bord Gáis is seeking an increase of 3.9% on top of the 20% increase granted last summer. Businesses, particularly smaller ones, are to the pin of their collar and there are significant concerns regarding staff redundancies. Everyone, including Bord Gáis, the CER and the Minister, has a part to play in ensuring price increases are kept to a minimum. Given the collapse in global oil prices, the Minister should tell Bord Gáis that there should be no increase in January, particularly in respect of domestic customers. It would be unwarranted and unjustified and would do serious damage to businesses, particularly the small businesses and entrepreneurs on whom we are depending to create new business and employment. Will the Minister address this issue and be more determined in his objection to a price increase?

Like the ESB, many of Bord Gáis's competitive advantages lie in its being a dual power provider. An example of these advantages benefiting the business and domestic sectors is its scheme, in conjunction with the IFA, to provide gas and electricity to rural communities at a substantially reduced price.

That many households are unable to connect to Bord Gáis is a disadvantage for the company. Where the service is available, the connection cost is approximately €2,500 and is beyond many households' means. According to a Bord Gáis study, it introduced an incentive in one part of the country by providing a €1,000 bonus, but only 17 domestic users applied. The Minister should consider introducing a scheme whereby households could connect to Bord Gáis where its service is available. The Government might consider taking action in this regard in order to reduce the cost and to encourage people to use gas which, we have been informed, is a cleaner fuel than some others. I look forward to the Minister's comments on incentives of this nature.

The Minister referred to the good work Bord Gáis, in conjunction with assistance from the Government, has been doing and indicated that its gas pipeline runs to approximately 12,500 km and that some 18 counties are serviced by it. Not one inch of pipeline was laid in Tipperary North. The Minister might state that I would say this, given that I represent the constituency. However, that constituency, which has been crisscrossed by motorways, does not have access to natural gas. In addition, it has been left behind in respect of certain issues over a number of years. Will the Minister ensure that north Tipperary is included in the next round of developments? Towns such as Thurles, Nenagh and Roscrea should have access to this natural resource. I understand a draft report is being drafted by Bord Gáis, the Government and the CER. I urge the Minister to ensure north Tipperary, particularly the towns to which I referred, is catered for in the next expansion of the gas network.

As already stated, a number of motorways have and are being constructed in north Tipperary. Why was it not possible to put in place infrastructural corridors adjacent to these motorways? There should be joined-up thinking on the part of various Departments when infrastructural developments of this nature are taking place because it could assist in the avoidance of much disruption and the carrying out of unnecessary works. If such thinking were engaged in, the environment would not be disrupted to the same extent.

Fine Gael welcomes the introduction of the Bill. We look forward to Bord Gáis continuing to develop its network in the coming years. Security of supply is vital for the economy and from the point of view of infrastructure. It is also important that there be competition, which can only be of benefit to everyone. Based on the outcome of its investments since the previous increase in 2002, when it was allowed to borrow up to €1.7 billion, Bord Gáis will now be in a position to borrow up to €3 billion. That is a positive development. If the concerns I raised in respect of ensuring taxpayers' money is safeguarded and other matters are addressed, the Minister will find support for the Bill on this side of the House.

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