Martin Ferris (Kerry North, Sinn Fein)

The recent uncertainty in the international energy market, although temporarily calmed, has led to substantial increases in fuel prices, which has had extremely damaging consequences for indigenous industry, farmers and fishermen. It is difficult to comprehend that earlier this year, oil on the international market was making $146 a barrel, while the price stands at just under $60 dollars a barrel at present. This has not been reflected in the pumping stations throughout this island, in which well in excess of €1 per litre is being charged. Moreover, the large increases in prices charged to domestic customers has placed an added burden on household incomes.

Therefore the extent of the reserves off our coast place us in a unique position with regard to future supply, costs and overall benefit to the people. However, this will not be realised unless the Irish State makes radical changes with regard to how the sector is controlled and how the revenues from that sector are channelled. Other countries have far more control over their oil and gas and the exploration companies are happy to enter arrangements which some people in this country claim would put them off becoming involved here. This is not the experience internationally and companies are unlikely to turn their backs on the potential that lies off the Irish coast because of higher tax and royalties, which would bring this country into line with others. I argue strongly that if international oil companies are prepared to enter into arrangements with other countries and pay far greater tax and royalties to those countries, this also should be applicable here.

In Norway, a state which ironically through Statoil stands to benefit to a greater extent than Ireland from the Corrib gas field, and which has a population similar to Ireland's, the benefits of oil and gas have been massive due to the manner in which the sector is managed by the state. For example, the Norwegians have a state pension fund of $240 billion, largely built from oil and gas revenues. During the first nine months of 2008, while the rest of the world's economies were reeling under the impact of the stock market and bank crisis, the Norwegian Government earned $18 billion in royalties from oil and gas. Combined with the $240 billion in Norway's pension fund, this argues strongly for the exploitation of our resources to the benefit of the Irish people.

There is potential off our coast, but only if it is properly managed and a proper revenue structure replaces the current one, which was put in place by former Ministers whose activities in other areas have been exposed and called into question. Their role in handing over our oil and gas should have been the subject of investigation by the tribunals.

While we are strengthening Bord Gáis, we should also consider expanding the interests of the country in oil and gas by strengthening the State's role and increasing the revenue flow. We need to ensure that the gas that comes on stream is available to people throughout the entire island. Currently, 18 of the Twenty-six Counties are part of the grid. If some of the exploration companies had their way, the gas would be piped out of the country in its entirety. At the very least, we must ensure that, when the new fields come on stream, the pipeline is extended to every part of the country, which should be reflected in lower costs to consumers. It would be ludicrous if the predicted scale of the gas to be taken from our coast did not even bring that benefit.

I welcome the boost the Bill will provide to Bord Gáis and hope that not only will it allow Bord Gáis to expand its operations for the benefit of the consumer and the economy overall, but that the Minister will engage in more hands-on initiatives in the energy sector, particularly in respect of the issues to which I have referred.

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