Martin Ferris (Kerry North, Sinn Fein)

I thank Deputy McManus for sharing time. I commend Deputy Coveney for tabling this motion, the main points of which I support. However, I would also like to indicate that Sinn Féin supports the Labour Party amendment regarding the transfer of ESB assets to EirGrid. As I stated on previous occasions when this matter has arisen, there appears to be no argument for this other than to prepare the ground for privatisation and the entry of people into the electricity generation market who will cherry pick areas where they believe they can make a profit at the expense of the overall service. It is also worth reminding ourselves that the ESB was established under public control in the first instance only because private enterprise was unable or unwilling to invest in it.

Obviously, energy costs are crucial to domestic and commercial users. As the motion points out, last July's steep increases of 17.5% on electricity prices and 20% on gas prices charged to consumers were justified on the basis of previous increases in the global price for oil. However, the even greater fall in the price of oil per barrel since the summer has not been passed on to the consumer and neither has there been any indication that it will be.

In our travels throughout the country coming to and from here each week, we cannot but be alarmed at the price difference from one petrol station to another, including those operated by the same company. One company in Tralee operates three petrol stations within a 500 m radius of each other and charges a different price at each station.

We cannot escape the effect that energy costs for commercial users is having on job losses at present. Just over two weeks ago, 200 jobs were lost at the Amann plant in Tralee. One of the reasons put forward by the company for this was that energy costs had soared from €1.2 million to €3.4 million in the space of 18 months.

In many instances, the impact of the increases for domestic consumers has been particularly severe. A 2007 study by the Institute of Public Health in Ireland stated that fuel poverty in this country was at an unacceptably high level by international standards. This situation has been exacerbated by last year's price increases. Families on marginal incomes, and particularly elderly people, are most affected, sometimes to the extent of having to go into further debt to heat their homes.

It was estimated that approximately 2,800 deaths per annum in the island of Ireland were due to deficiencies in households being able to meet their energy needs. In my constituency, elderly people in particular seek support to install solid fuel ranges in place of storage heaters. This is because of their belief that due to the increase in energy costs it would be easier for them to heat their homes and survive with fireplaces or solid fuel ranges.

The most alarming aspect of studies on fuel poverty here is that rates of fuel poverty increased during the years of highest economic growth and the level of household income below which families were finding it hard to meet their energy needs also rose steeply. This is an indication that energy prices and the relative proportion of household income required to meet householders' needs were rising at a faster rate than that pertaining to most other essentials. Therefore, I support the proposal that the energy regulator should conduct an immediate review of the prices being charged by the electricity and gas suppliers with a view to passing on, to domestic and commercial consumers, the reductions that should accrue as a result of the decrease in global energy prices.

More emphasis should be placed on the sources of alternative renewable energy, particularly if 15% of our energy demand is to be met from renewable sources by 2010. There is massive scope for wind and wave energy production, which would not only help to meet that target but, more important, contribute to the economy at a time of severe downturn. In spite of this, there is little indication that sufficient attention is being paid to these areas.

Tidal energy also offers considerable potential and efforts are being made to exploit it. I have no doubt about its potential and would like to see it advanced. The same applies to the production of energy crops, in which very few farmers are involved although production has increased from a low base in recent years given the ambitious targets for wood energy tied to local processing. This sector also requires further investment and development but progress will be hindered by the recent budget cuts affecting Teagasc. Incentives are required so those on marginal incomes, farmers in particular, will be able to exploit the potential in this area with a view to producing alternative energy.

The Minister for Foreign Affairs, Deputy Martin, referred recently to the ongoing delay in bringing ashore the gas from the Corrib field and pointed to the boost it would have for the economy at a time of global uncertainty regarding supply and pricing. Undoubtedly, the bringing ashore of the Corrib gas, which has an estimated value of billions of euro, would be beneficial but there are major questions over whether this would be the case given the current licensing terms that apply. Furthermore, at present only 18 of the Twenty-six Counties in the State are connected to the natural gas network. The Corrib pipeline, as currently projected, will not supply most of those living in the immediate area.

Apart from these facts, one must consider the taxation and royalties and the fact that this State will gain little or nothing in real terms by comparison with the revenue flow that plays such a big part in sustaining a successful economy like that of Norway. The Norwegians, for example, have a state pension fund of $240 billion, largely built from oil and gas revenue. During the first nine months of 2008, while the rest of the world's economies were reeling under the impact of the stock market decline and bank crisis, the Norwegian Government earned $18 billion in royalties from its oil and gas. This is an example of good management and a negotiated deal in the interest of the people of the country. It has contributed to a public service envied by most other countries. However, there has been little indication that the Irish Government or its predecessors have had any intention of seriously addressing this matter with specific regard to the Corrib field.

Aside from the Corrib field, there is considerable potential in other areas off the Irish coast. Estimates, including one from the petroleum affairs division of the Minister's Department, suggest there are 10 billion barrels of oil lying off the west coast of Ireland, valued at over $500 billion at current prices. That is in addition to a natural gas reserve estimated to amount to 50 trillion cu. ft., which is sufficient to supply the whole of western Europe for some time. Some 200 km off the coast of Kerry is the Dunquin gas field, which is estimated to contain 25 trillion cu. ft. of natural gas and 4,130 million barrels of oil.

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