Chris Andrews (Dublin South East, Fianna Fail)

I welcome the opportunity to speak. The purpose of the Bill is to increase the statutory borrowing limit of Bord Gáis from €1.7 billion to €3 billion. I wholeheartedly support its speedy passage through the Dáil. Bord Gáis Éireann has clearly performed very strongly in 2007 and revenues were up 10% on 2006 figures to €1.2 billion. Connections to the gas network have grown from 402,000 in 2002 to more than 570,000 today. As a previous speaker mentioned, there may be difficult times in the economy in general but there are great opportunities and challenges within the energy sector.

The increase in the borrowing limit is required in order that Bord Gáis can continue to fund its capital expenditure programme over the next five years. This capital expenditure includes, among other issues, the expansion of its core gas business and its development as a company. It is important that Bord Gáis is able to engage in expansion. In recent months we have been reminded of just how important it is for us to have security of energy supply. Ireland is a small energy market on the edge of Europe, with a very limited indigenous supply of energy - a position this Government is committed to changing. It will not happen overnight.

Over 70% of our energy is imported and we depend on external sources. It is imperative that we protect our own resources in a sustainable way. Russian troops still remain in Georgia after the conflict there, which reminds us geopolitics could potentially endanger continued supply. During the week we have seen the hijacking of an oil tanker by Somali pirates, which had an immediate impact on the price of oil. The commodity's value is balanced very delicately and it does not take much to disrupt it. To ensure we have a proper, well-managed and proactive system in dealing with energy is very important.

It is said one only misses things when they are gone. On a recent visit to the Gaza Strip it was evident Israelis had restrictions on fuel and power coming through to the ordinary families and people working there. One could see how important energy is and how a restriction on the flow of energy can have an effect. When we visited there were power cuts, which caused chaos for the people relying on fuel, energy and power. We visited a hospital and could see first hand an impact where babies were in incubators. When there were power cuts the incubators could not be heated, which had a detrimental effect on the children.

No more than in Gaza, if we have difficulty with our power supply for some reason, it would have significant impact on ordinary people's lives. It is very important that we protect the supply.

Bord Gáis has performed strongly over the years. Environmental sustainability is a cornerstone of the Government's energy policy framework and I strongly advocate continued investment in renewable and alternative energy supply. Development of renewables will enable us to meet our greenhouse emission targets, as well as improving energy security, which as I have said is very important. Bord Gáis has a commitment to investment in this area, which I welcome. I commend the Bill to the House and urge other Members to do so also.

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