Dáil debates

Wednesday, 4 February 2009

Energy Prices: Motion (Resumed)

 

7:00 pm

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)

I welcome the opportunity to speak about the Government's energy policies and welcome the Minister's intentions, stated last night, with regard to a reduction in electricity prices.

The Joint Oireachtas Committee on Enterprise, Trade and Employment has spent the past two days having hearings into the retail market. One of the key issues arising as a differential in cost is the price of energy. One of the retail operators with the committee today, which operates in the South and in England, pointed to a 50% difference between its energy bills here and in England. All the retailers with operations on both sides of the Border pointed to a smaller, but still significant difference in energy prices. Therefore, the announcement made by the Minister last night is welcome.

The key issue Ireland faces as an island is energy supply. We are an island at the edge of Europe, but we are an island at the end of a gas pipe that comes from a country that is, at the best of times, unstable, and, as we have seen in the past number of weeks, a country not afraid to use its supply as a political weapon. For that reason, we must address our supply issues.

Deputy Áine Brady spoke earlier about the efforts being made by the Minister, Deputy Eamon Ryan, in the area of renewables. There is much work to be done in that regard, but much as been achieved, not just by Government, but by many interest groups outside the House. I compliment Deputy Coveney who has been to the fore in educating many of us in the House on the issue.

However, there is still not enough happening. We still have very restrictive planning laws with regard to renewable energy and infrastructure. It may be that the Government will have to take action to overcome local planning difficulties in this regard.

The biggest issue for us is supply. In this regard, both I and Deputy O'Mahony are very familiar with the issues relating to the Corrib gas field. I have never made any secret of my support for this project. This island needs that supply now more than ever. I commend the Minister, Deputy Eamon Ryan, and the Minister for Community, Rural and Gaeltacht Affairs, Deputy Éamon Ó Cuív, on the work they are doing with the north-west forum in trying to bring as many people on board with the project as they can. The loss to Ireland as an island as a result of delays in bringing the gas ashore is increasing daily.

We have got lucky in that oil prices have collapsed again, but they are beginning to rise. Everybody who knows anything about energy or oil, suggests oil is more likely to end up at the price it was last summer than the current price. For that reason, we need certainty over our alternative gas supply here. I appeal to all sides on this issue to use the forum, its non-political nature and the experience of Joe Brosnan as its chairman, to address their concerns and the issues. Everybody is agreed about bringing the gas ashore, but the difficulty concerns how it is brought ashore. We need to get it ashore as quickly as possible.

One of the benefits of having gas on the west coast is the Gas West project. This has opened an alternative energy supply to businesses and domestic customers in the area. Many parts of the country have had a gas and electricity supply alongside each other for many years. It was only in the past few days that my home town was connected to gas. This happened because of the potential to get Corrib gas on shore. It does not make sense that the west takes gas that comes from a pipeline that begins in Russia, when we have enormous supplies of gas a couple of miles off our coast.

Supply is related to prices. Difficulties with regard to supply drive prices. The difficulties with oil prices have been driving the cost of electricity and gas. However, we have in our power and within our grasp as a country the ability to manage the problem and ease the pressure. We should grasp the ball with both hands an run with it. I appeal to all sides to use the north-west forum to address the issues. We must get the gas ashore and open up whatever else is out there. There is a significant reserve of energy, be it oil or gas, off the west coast. We must get it ashore and use it for the benefit of the people.

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