Jimmy Deenihan (Kerry North, Fine Gael)

I join with previous speakers in acknowledging this motion in the name of Deputy Coveney and compliment him on bringing it forward. It has achieved results already because I am sure it is not a coincidence that because of this motion the Minister has ordered this evening a review of electricity and gas prices. That is good politics and it is good for the Dáil in that we are seen to be gaining something by putting down a motion. I acknowledge that contribution by Deputy Coveney.

The Taoiseach outlined earlier the areas in which he would like to see Ireland gaining competitiveness, and singled out our energy costs. Obviously, that aspect has struck home with the Government.

Ireland has dropped from 4th to 22nd in the global competitiveness league. In 1991, I was in America on an industrial promotion visit. At that time Ireland, along with Portugal, had the lowest energy prices in all of Europe but at the same time our hourly rate was a little over $6 an hour, which was approximately £5. We were very competitive, and there was a price freeze on electricity charges for a number of years. As a result we went from being one of the most expensive countries to the least expensive at that time in terms of energy costs, and it made Ireland very competitive.

All the surveys being done, including the recent survey by Forfás with business people, are identifying energy prices as one of the main disincentives for companies in terms of staying in Ireland and setting up in Ireland.

As regards wages, and I have mentioned these figures on previous occasions, I was in Silicon Valley last March. The dollar was fairly weak against the euro at that time but a senior IDA official told the members of the delegation who were with me that it cost $26 to employ somebody in Silicon Valley, $6 in Poland and $28 in Ireland. He said it was very difficult to explain that cost differential to people when they have much lower energy and wage costs in those countries, and we expect companies to set up in Ireland. As regards competitiveness, apart from the social cost the other increased costs are an additional burden on all domestic users throughout the country.

I understand approximately 95% of our gas is imported; only 5% now comes from Kinsale. It is hoped that a project in the Shannon Estuary will provide a liquid natural gas terminal. Around the Shannon Estuary, in Tarbert we generate electricity from oil. In Moneypoint, we generate approximately 20% of the nation's electricity from coal and we will now have gas on the same site in the general area. There are more wind turbines on the Stacks Mountains and in west Limerick than in any other part of the country. There is an ideal energy mix in that area. The Minister should consider a proposal I have made in the House on several occasions to designate the area a national energy park. This region has the potential to supply energy to most of the country. The IDA may communicate with the Minister on the matter, while Shannon Development will definitely be in touch with him. I ask him to support the concept when it comes before him shortly.

We are examining potential opportunities to create employment. While it may not be a panacea, the green technology revolution offers major employment opportunities. Green energy technology companies are being spawned throughout Silicon Valley, which now has around 400 such firms. There is no reason a number of similar companies cannot be created here. We should grasp the nettle and exploit our natural advantages.

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