Peter Kelly (Longford-Westmeath, Fianna Fail)

The Bill seeks to increase the statutory borrowing limit placed on Bord Gáis from €1.7 billion to €3 billion. Its enactment will give Bord Gáis the legal ability to access funds to develop the strategic direction set out in its five-year corporate plan to 2012 and beyond.

Bord Gáis was established in 1976 with a mandate to develop and maintain a system for the supply of natural gas that was both economical and efficient. The borrowing limit at the time was £25 million. Bord Gáis has played an important role in the growth of the economy through the development of a gas network of more than 12,000 km of pipeline serving more than 600,000 customers. A total of 18 counties in the Republic and four counties in Northern Ireland are connected to the natural gas network. Six years ago, the borrowing limit was increased from €700 million to €1.7 billion.

The structure of the energy industry has changed significantly since the introduction of market liberalisation and Bord Gáis has a variety of roles within the gas industry. It has expanded beyond its original base into the electricity supply market. It has two main businesses, namely, networks and energy supply. It has 600,000 gas customers and a 2007 turnover of €1.215 billion. The company employs 900 staff and has been a successful institution of which the country should be proud.

Bord Gáis holds the transmission and distribution system owner licences in respect of the natural gas network. It carries out work and provides services in respect of the network on behalf of Gaslink, the independent system operator. Through the new connections programme, Bord Gáis Networks brings the benefits of natural gas to new areas and constructs and extends the network to the highest international safety standards.

The 12,375 km of pipeline includes transmission and distribution networks, two sub-sea interconnectors linking Ireland with Scotland, an onshore system in Scotland, a spur line to the Isle of Man, the north-west pipeline from Belfast to Derry, the Mayo-Galway pipeline to bring gas from the Corrib field into the national grid and the South-North pipeline from Gormanstown, County Meath to Belfast to secure long-term gas supplies for Northern Ireland. It is important to note that Bord Gáis is licensed to supply natural gas to ten towns in Northern Ireland. In the week when it was announced that the Stormont Executive is back on track, it is encouraging to see cross-Border co-operation on a practical level.

The operation and development of the gas network in the next five years will involve adding a further 1,500 km of pipeline, the connection of 150,000 new customers, the replacement of the remaining cast iron network and investment in new systems and technology to provide improved customer service.

I wish to discuss the global gas market. Last month, Russia, Iran and Qatar announced their establishment of an OPEC-style gas cartel to control up to 60% of the world's gas supply. Russia's gas export monopoly, Gazprom, stated that it had agreed to form the cartel with an aim to its becoming a permanent body with regular meetings. Europe and the United States have warned against such a gas export body because it would pose a danger to global energy security and create room for price manipulation.

Russia, Iran and Qatar are ranked the first, second and third largest holders of natural gas reserves in the world and boast more than 60% of the global total. They have agreed to hold regular meetings three or four times a year to discuss key issues of gas market developments and claim to have a common vision of the forum's goals and of the need to transform it into a permanent organisation as quickly as possible to serve the goals of stable and reliable energy supplies. It reads like the script of a Bond movie and is an issue that should be monitored. As a member state of the EU, Ireland's voice can be heard.

Natural gas has become a global commodity of geopolitical importance. World gas consumption is projected to more than double over the next three decades, with gas surpassing coal as the world's number two energy source. Experts have suggested that gas could even overtake oil's market share in many large industrialised economies. The advantages of gas include ample supply, its greenhouse advantage over other fossil fuels and its economic competitiveness as a feedstock for electrical power generation.

Across the Atlantic, natural gas is likely to play an even more important role in America's energy production. Between 1997 and 2007, the amount of natural gas used in the production of electricity increased by more than 50%. Natural gas is now used to generate 22% of all electricity in the United States. When one considers that 55% of America's 109 million households use natural gas for heating purposes, one will realise how crucial it is as a source of energy.

Sustained high prices, in conjunction with new technologies, have led to a striking increase in production in the United States following a decade of stagnation. According to the Energy Information Administration in the US, natural gas production has grown by 9% in the past 15 months as companies make use of previously unavailable or unprofitable resources. One result of the growth in production of gas is that net US exports have increased fivefold since 1997, from 157 billion cu. ft. in that year to 822 billion cu. ft. in 2007.

Natural gas accounts for approximately 25% of total primary energy demand in Ireland, a share that is in line with both the worldwide and European averages of 24%. The Irish gas market is small in a European context, using less than 1% of total EU gas consumption. Ireland has an unusually high dependence on oil — 56% of our energy comes from oil, compared to 36% worldwide and 40% in Europe.

It is encouraging that Bord Gáis will have a capital investment programme of up to €2 billion over the next five years. The Government's energy policy framework document, Delivering a Sustainable Energy Future for Ireland, supports the sustainable development of the State energy companies. Competition and environmental sustainability are key pillars of the policy framework. As the Minister outlined, the enactment of the legislation before the House is crucial. Increasing Bord Gáis's borrowing limit to €3 billion is essential, particularly if we wish to have a world-class gas service. Bord Gáis has increased its turnover from €496 million to €1.2 billion and profits have risen from €70 million to €142 million since 2000. Net assets have increased from €672 million to €1.3 billion. This shows that the company is in a healthy financial position.

I support the legislation because it is in the interests of the country to have an efficient energy supply system. Even if we find ourselves facing changed economic circumstances, we should still encourage expansion and development. We should continually look to the future and seek new opportunities. The Bill will assist us in doing just that.

Longford is among the counties that do not have access to natural gas. Bord Gáis, at my request, sent representatives to the county on three occasions in recent years. To date, however, a pipeline has not been laid. I appeal to the company to reconsider the county's suitability in this regard.

Numerous criticisms have been directed at me recently by Members on the opposite side of the House. Five years ago, I stated that I would endeavour to do certain things for the people of County Longford. At that time, I said I would endeavour to bring gas to Longford. I will continue my efforts in this regard. I also stated that I would bring decentralisation to the county, a matter in respect of which I was successful. As a result of my efforts, 130 staff have relocated to Longford and an investment of €19.5 million has been made. I further stated that I would ensure Longford obtained a new swimming pool and a new 25 m, six-lane facility, which cost €17 million, has been put in place.

I will continue to work on behalf of the people of County Longford. However, I will do so in my own quiet way. I will not shout and roar about my achievements. I will continue to work with the people who want to work with me. Co-operation is the only way forward; it is the only means by which one can be successful in any walk of life. Members should work together for the common good of the country. I have no doubt that the Bill is for the common good and that it is designed to promote Ireland. I am sure people will put the country first and cater for the needs of Bord Gáis, particularly as we require the energy it can generate.

I visited the headquarters of Bord Gáis in Cork. I met many of the company's staff, who are a credit to Ireland. The company, as a semi-State body, is also a credit to the country, particularly in respect of the way it conducts its business. I wish Bord Gáis continued success in the future. Once it is safe in Irish hands — with an Irish board and an Irish management team — the success to which I refer will continue to obtain. Irish people are the best in the world. There is no one to equal them when they put their minds to achieving something. They have the expertise, management skills and everything else that is required to make a successful business. Bord Gáis is an example in that regard.

Perhaps Bord Gáis and the ESB might give serious consideration to not increasing the prices they charge if possible. Ordinary consumers are extremely valuable customers and we do not want a situation to arise where they will not be able to afford to pay their bills. Bad weather is predicted this winter and I would not like anyone to be in a position where they could not afford to pay for light and heat. I am sure Bord Gáis and the ESB will pay heed to what I am saying and review the position in order to discover whether there might be an opportunity to reduce prices. I will not discuss the details of discussing recent decreases in the price of oil. However, I am sure those in Bord Gáis and the ESB are aware of how people feel about this matter.

It would be remiss of me not to mention the Corrib gas field. It is important that if we have a natural resource it is used for the benefit of the majority of people in the country. While many people sympathised with those involved in that saga in terms of the inconvenience caused, Irish citizens will normally put up with anything that benefits the majority of people. The minority must sometimes be inconvenienced for the good of the majority. All reasonable and sensible people would agree with the sentiment that we must consider our fellow people. I appeal to everybody, when contemplating actions, to be charitable and to put first the good of the country.

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