Eamon Ryan (Dublin South, Green Party)

It is debate in the proper way. There is not a monopoly or ownership on the switch we have to make. We all understand the sense of this, that if we do not do it we are leaving the country exposed, and if we do it we can help out the farming community. I see farmers as being probably the most important group in making the switch towards a more indigenous fossil fuel system, with wind power, biomass and fuel crops. We are on a similar line on that. The issue is how one best does it. That requires political support as well. We need to make difficult decisions that might not be popular. It will be difficult to build the electricity grid.

I could spend all my time talking to Deputy Tom Hayes. Putting lines underground might seem the most attractive option, which we will do wherever we can because of the landscape and other benefits, but in certain instances it is not technically possible and would not be desirable for a range of reasons. Crucially, for the people of this country, especially in rural areas, if we do not build the grid there will not be any jobs. I do not mean there will not be any jobs at all but none of the modern jobs that come from factories provided by foreign direct investment. That is what has helped rural Ireland tremendously in the past 30 or 40 years.

In my mother's town of Macroom a series of factories set up on the edge of the town. They need good quality electricity. I refer to big investments such as modern bio-pharma, biomedical devices, ICT and data centres. They need a rock solid guarantee that they will have power. They cannot afford for the system to collapse. A data centre cannot be allowed to go down. Likewise, the ovens in a bio-pharmacy plant cannot be allowed to cool down. Often one needs two electricity connection points on either side so that if one goes down, one has a backup. In order to do that one needs a grid. It is not easy or popular to do that but it is important. Some people say "Yes, we should make the switch" but at the same time they do not want us to put in the grid, but that will not work.

I wish to refer to some of the other contributions that have been made in concluding the Second Stage discussion of the Bill. I thank Deputies from all sides of the House who have contributed to the debate. I have listened with interest to the points raised and I will take them into account as we move on to Committee Stage. Bio-fuels will play a central role in meeting our binding European Union targets for 2020, and in so doing, greatly reduce our greenhouse gas emissions, improve energy security and help the agricultural sector to diversify into new areas.

We must strike a balance between taking advantage of these opportunities and at the same time ensuring that the fuels are from sustainable sources and that increased penetrations of bio-fuel take place at least cost to the consumer. The bio-fuel obligation scheme, as set out in this Bill, meets all of those requirements. I appreciate the support I sense across the House for the model we are adopting.

A number of amendments are likely on Committee Stage, primarily to clarify certain matters with regard to the operation of the obligation, but also to make provision to impose a levy on electricity generators in respect of carbon allowances. In July 2009 the Government agreed to progress legislation to recover these gains and to use the proceeds to reduce network charges for large energy users in order to support employment and economic recovery. Amendments on Committee Stage which will place a levy upon electricity generators to recover a substantial proportion of those gains have already been published. My Department has engaged with the Commission for Energy Regulation and the electricity industry on those measures. I look forward to engaging further with the Opposition on the issue.

In response to Deputy Tom Hayes's comments about a plant in Clonmel, it is the intention to use any such revenues. They do not go back to the State; they will go back to the large energy users, the big companies that have high electricity bills to make sure that they remain competitive. We have brought our prices back down to the European average. We need to stay at that level and one of the ways we will do that is by means of the amendments we intend to introduce on Committee Stage.

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