Dáil debates

Wednesday, 4 February 2009

Energy Prices: Motion (Resumed)

 

8:00 pm

Photo of Deirdre CluneDeirdre Clune (Cork South Central, Fine Gael)

I am delighted to speak to this motion, which is very important at a time when many are experiencing difficulty operating businesses. Consumers are finding it extremely difficult to make ends meet. I am especially conscious of the high rate of unemployment, which is continuing to rise.

This is an important motion. I am pleased the Minister, albeit belatedly, has instructed the regulator to examine energy prices to see what can be done to reduce prices. Deputy Coveney has been calling for changes in this area for a long time. The motion we have before the House is broad but it makes specific points in different areas about how practical and realistic measures can be taken to reduce the cost of energy. Energy costs are an important factor for the economy because our competitiveness has dropped from fourth place to 20th place in the global competitiveness league. The cost of energy is a major element of the cost of doing business in this country.

I attended a meeting of the Joint Committee on Enterprise, Trade and Employment which was examining the cost of retail goods to consumers in this jurisdiction. Many media reports focused on the issue recently. It was interesting to hear a representative from Aldi indicate that the energy cost of operating a facility in Ireland is 100% higher than a similar facility in the UK. That flies in the face of a report produced by Forfás in December 2008, which estimated the cost of doing business in this country as approximately 20% dearer. However, the man from Aldi can stand over his figures. That is an alarming statistic which underlines the difficulty so many people have doing business in this country where energy costs are one of the major factors.

The cost of energy to consumers is a major factor also. Many speakers expressed their bewilderment at the increase in energy prices in August 2008, which was justified at the time by the fact that the price of oil was high, yet when the price of oil dropped to approximately $40 a barrel it was not reflected in a decrease in energy prices. That drives people insane. They cannot understand it and are most frustrated by it.

A widow contacted me last week whose husband died relatively recently. She set about putting her own name on the ESB bill, which had been in her husband's name. Although she was in the same house and it was the same service she was asked for a payment of €300. We appealed the imposition of that charge and the appeal was granted on compassionate grounds. However, that fee of €300 is still in place. One only has to consider the amount of rented accommodation that changes hands around the country. That fee is outrageous and it does not make any sense. There is no cost involved other than the time it takes to change the name on the billing address.

The same can be said about the increase in wages to ESB workers. In this day and age when people are losing their jobs it is hard to justify an increase in wages in the ESB. In the past 24 hours we have seen a levy on pension payments imposed on public sector employees. I accept the payment in ESB was agreed but there was no justification for it. People cannot understand it. I heard Padraig McManus justify it on the basis that labour is a small factor in overall costs. Those figures have been disputed by Deputy Perry who spoke previously in the debate. The cost may be small but it is significant and it sends out a completely wrong message.

The Minister of State, Deputy Seán Power, is willing to give up his job. That would have been a small contribution but it would be an important message to send out, that we are serious about excesses and keeping costs down, especially costs to consumers and business. I hope the ESB will reverse that decision.

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