Ulick Burke (Galway East, Fine Gael)

I welcome the opportunity to contribute to this debate and thank Deputy Coonan for sharing his time. There is far greater recognition in 2010 that Ireland is in a very exposed position with regard to energy supply due to its over-dependence on imported fossil fuels for electricity generation. Our 96% dependence on such sources of energy, particularly imported fossil fuels, puts our supply in a precarious position, particularly during periods of high demand. All of our oil and 90% of the gas used in the generation of our electricity is imported. Some 60% of our electricity is generated from gas, but only 8% of that gas need is home produced.

Now is the time, as suggested in the motion, to front load investment in domestic energy as planned in Fine Gael's NewEra policy. We must safeguard our supply and find alternatives. We have many great resources on our doorstep, but our Minister and his predecessors have neglected to develop them. Wind energy can be part of the alternative, but access to the national grid is a serious problem for many in this area and has hindered development, particularly in the west where we have the greatest need and the greatest potential in the area of wind energy. It is wrong that there is so great a delay in providing access for many projects that already sustained high costs in getting planning permission, funding and paying research and consultant costs to establish the viability of the projects. The "gate" system currently operating does not work and adds to the delays. There are currently many projects in gate three that will never come to fruition. Other projects are ready to go but cannot even gain access to gate three.

It is essential the Minister takes action. He must bring the people and agencies responsible for these unnecessary delays together to release the potential and gain from the investment already incurred so as to generate an alternative source of energy. The current system must be amended if we are serious about meeting the targets set out for the next ten years. Excessive application fees are also being charged for grid connection. The justification for these fees must be examined or are they being put in place to hinder viable projects? EirGrid is making an effort to improve the grid structure, but it is often opposed by objectors.

The carbon tax announced in the budget will increase farm production costs by a staggering €16 million per year. This tax increase is particularly severe on farm diesel, with an increase of 8.7% in comparison to the increase of 4.4% on auto diesel. Farm diesel accounts for 40% of farm energy expenditure, or €128 million per annum. This is a new tax on farm production and will hit tillage farmers in particular and other contractors whose activities peak during summer demand. This carbon tax increase will cost €11 million on farm diesel alone and is a further burden after three bad years of farming, particularly for those involved in tillage and cereal production. It is unacceptable at a time of falling incomes and further high cost inputs. Why has there been a higher increase on agricultural diesel than on other fuels? I hope this increase will be postponed, as was done with home heating oil after the budget, and that the increase will be reduced to 4.4% as is the case with auto-diesel and other fuels.

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