Pat Breen (Clare, Fine Gael)

I commend Deputy Coveney on tabling this genuine, timely and positive motion. Small businesses are sinking on a daily basis, while others are barely remaining afloat. Many business interests are being crippled as a result of high costs. The high price of energy is a major factor in this regard. As Deputy Coveney stated, Ireland dropped from fourth to 22nd on the global competitiveness league table in recent years. However, businesses are not the only ones affected by what is happening. Ordinary people have also been affected.

Last July, the price of oil reached an all-time high of $150 a barrel. In the interim, it has decreased to somewhere in the region of $40 a barrel. Unfortunately, this decrease has not been reflected in householders' ESB or gas bills. Motorists are complaining that the reduction in fuel prices has not been passed on at the pumps. When the price of crude oil decreased in the autumn of last year, there was a gradual drop in the price of petrol and diesel. However, the price soon rose again. There was a high of €1.43 per litre of petrol in July of last year. The price now is just under €1. In light of widespread dissatisfaction with what has happened and claims that motorists are not receiving the benefit of reductions in the price of crude oil, the National Consumer Agency undertook an investigation into petrol and diesel prices which indicated that there is little evidence to suggest unwarranted delays in the passing on of wholesale price reductions to consumers.

Tight profit margins in this country have already forced many petrol retailers in rural areas out of business. A large number of petrol stations throughout the country have closed. Many of these were small businesses which had shops on the forecourt at which bottled gas and other things were sold. The majority of those who operated these concerns will inform one that there was very little margin to be gained in respect of selling diesel and that they could no longer remain in business.

There is a concern that the bigger players entering the market will close further stations in rural areas. The retention of competition in respect of prices is vital. The national consumer survey found that Ireland compares quite favourably in the context of the density of petrol stations. Ireland has one outlet per 2,020 people, whereas in Northern Ireland it is one per 3,100. In Britain, the figure is one station per 10,000 people. Competition is the key towards ensuring that there is some level of variation in prices.

Petrol and diesel prices in this country are high. I trawled the Internet earlier this evening to try to discover the price of diesel in Poland. Many manufacturing jobs are moving from this country to Poland at present. Last month, some 1,900 jobs at the Dell plant in Limerick were lost to Lodz. The price of diesel in Poland is 82 cent per litre. This compares to a price of approximately €1 in Ireland. That speaks volumes about the price of diesel and petrol here and the fact that it is affecting many of our manufacturing businesses.

There is enormous potential in the mid-west region in terms of renewable energy resources, particularly in the area of wave and wind energy. If the wave and wind energy in the Shannon Estuary was captured it could make a major contribution to regional and national electricity demand. We are fortunate that the University of Limerick is located in the area and we should examine the importance of the University of Limerick, which could become a centre of excellence in this area. A programme of investment is already under way in Moneypoint, which I hope continues.

I commend Deputy Coveney. He pointed out what must be done to address these issues and I appeal to the Minister to take on board his proposals.

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