Dan Neville (Limerick West, Fine Gael)

I welcome this opportunity to contribute to the debate. Ireland is dangerously exposed to oil or gas price hikes or import disruptions. This has serious implications for business projects, company manufacturing and exports from the State and consequently job creation. The economic stability of the country is at risk in the event of electricity disruptions. The Government needs to address this insufficient energy storage capacity and develop indigenous energy supplies. The economic damage that can occur when systems taken for granted break down is extremely dangerous, and this has been highlighted by the current aviation crisis. Will the Minister address this? The amount of revenue lost in the current crisis would pale into insignificance if there were a sudden hike in oil or gas prices or long-term disruption to energy supplies.

We have to accept that 90% of gas and oil used for electricity generation is imported. This is a key statistic. There is no gas storage in Ireland and there is very limited storage of strategic oil supplies. Severe disruptions will occur in electricity supply within days of disruption to the import of fossil fuels. I welcome the fact that energy security is firmly on the agenda of Fine Gael, to pressure the Government into addressing our insufficient energy storage capacity. The Government must also further develop our indigenous energy supplies. We must be prepared to weather a crisis in the event of a sudden price hike. The Government is being reckless with the economic stability of the country by ignoring Ireland's energy security problems.

Between 1990 and 2007 there was an increase of 108% in imported energy. Gas has replaced other fuels such as turf and coal in the generation of electricity. Our indigenous suppliers of gas meet only 8% of our gas needs. Indigenous gas comes through Kinsale while our only gas storage facilities are depleted as part of the Kinsale field. Two connector pipelines from Moffat in Scotland import 95% of our natural gas. These are the only connections to European gas distribution. The interruption of gas supplies at Moffat would cause extreme difficulties for Ireland, with consequences for the economic opportunities of the country and jobs.

See this speech in context