Ulick Burke (Galway East, Fine Gael)

I thank my colleagues for sharing time. I commend Deputy Coveney for bringing this timely motion before the House. Day after day, throughout the country we hear reports of job losses. One of the main reasons given for job losses is lack of competitiveness. Within the competitiveness area the criterion that ranks highest of all is the cost of energy.

That was brought home clearly to me last week when a company in Loughrea, which was established 20 years ago, announced it was closing down. Word came from the US that because it was no longer competitive to continue in Loughrea the company would close on a staggered basis commencing in March and finishing in June.

An important point is that we have long heard we are losing our competitiveness as a manufacturing base but this case was different in that we are losing a service industry that involved high-quality jobs. It is sad to note that only today the Minister for Finance made a statement in the House dealing with the other motion before the House. He outlined that the maintenance of jobs is paramount and restoring competitiveness is central to that goal, yet for the past ten years this Fianna Fáil-led Government has paid lip-service to the production of energy in this country, especially renewable energy.

A major wind farm, which was of great importance to the west of Ireland in particular, was delayed for four years because two Government agencies stifled the planning process. In addition, the banks that were going to finance the project for private developers pulled out. That is what is happening now, the banks are not providing the resources and backup for private developers to develop alternative sources of energy. Government has sat idly by for so long without doing anything to address the issue.

Gama erected a gas power station at the old disused mine at Tynagh in Loughrea two years ago. It is a state-of-the-art electricity producing station. An unusual situation developed in terms of cost effectiveness that was overseen by the Commission for Energy Regulation. The producers of electricity got a contract whereby they were paid for the total potential capacity output of that station when the output was never more than 50% or 60%. In terms of competitiveness, how is it that the regulator has not sorted out that issue? Why has there been such a rip-off in that particular instance?

There is a need for a review but when that takes place surely the person charged with the responsibility must have adequate teeth and power to provide proper regulation. If we are to maintain jobs it is important that somebody must intervene. If energy prices increased so rapidly six months ago, why has there not been a corresponding reduction in them recently given the monthly decrease in the price of oil and other carbon fuels? It is important that the Government would take action at this stage because of the totally inadequate efforts or powers of the Commission for Energy Regulation. It has failed. It is a flop and it is time it was changed.

See this speech in context