Brian Lenihan Jnr (Dublin West, Fianna Fail)

The European economic recovery plan was endorsed by the European Council at its meeting of 11 and 12 December 2008 and amounts to more than €400 billion. The Community part of the plan, which has been agreed by the European Parliament and the Council on a proposal from the Commission, will finance projects in the field of energy and rural broadband Internet, as well as new challenges identified under the CAP health check. This Community financed package of measures, which aims at providing additional stimulus to the EU economy and improving energy security, amounts to €5 billion. Almost €4 billion will be made available for the financing of the energy projects. The balance of a little more than €1 billion will be made available for developing broadband internet in rural areas and strengthening operations related to the new challenges defined in the context of the CAP health check.

Responsibility for implementation of energy and broadband projects rests with the Minister for Communications, Energy and Natural Resources and with the Minister for Agriculture, Fisheries and Food in respect of the CAP health check. However, in regard to the energy aspects of the proposals, the Deputy should be aware that this critically important package represents a comprehensive and co-ordinated EU response to the twin challenges of supporting economic recovery and achieving EU energy policy objectives, especially security of supply. It will provide tangible support to priority energy projects, ensuring the further integration of European energy markets and it will underpin our collective actions to tackle climate change. The package proposes undertaking a programme of investment measures during 2009 and 2010 for energy projects in the following fields: gas and electricity interconnection projects in the amount of more than €2.3 billion, carbon capture and storage in the amount of more than €1 billion and offshore wind projects in the amount of approximately €0.5 billion.

Recently, the Government announced that it has given a green light to the development by EirGrid of the €600 million east west electricity interconnector linking Ireland and Wales, running from Meath to Deeside. I am informed that, as a further stimulus to this project, the interconnector has been included on the list of energy projects under the European economic recovery plan, with a proposed allocation of €110 million. This is a welcome recognition of the strategic importance of the east west interconnector, which will underpin regional energy market development and the all-island single electricity market. It will ensure that Ireland, as a peripheral island nation, can benefit from and contribute to the development of a strong internal energy market in Europe, enhancing competition, contributing to security of supply and assisting Ireland in meeting our ambitious renewable targets.

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