Dáil debates

Tuesday, 1 June 2010

Financial Emergency Measures in the Public Interest Bill 2010: Second Stage

 

8:00 am

Photo of Arthur MorganArthur Morgan (Louth, Sinn Fein)

I thank Deputy Michael D. Higgins and the Labour Party for sharing time. It is unfortunate that the Minister of State, Deputy Calleary, left the Chamber. Having had occasion to serve on the Committee on Enterprise, Trade and Employment with the then Deputy, I found him to be an eminently sensible person who was focused on trying to find solutions to our problems. He stated, however, that the Government has "put in place well-developed mechanisms to protect the most vulnerable households from any undue burden from taxes, fees or charges from the State sector." What is it about Government Buildings that transforms an otherwise sensible person into someone who would make such a statement? When one considers the devastation visited on people on low incomes and welfare, it is clear this statement emanates from cloud cuckoo land.

The Green Party, when in Opposition, consisted of reasonably sensible people with a social conscience interested in trying to organise a decent society. This, at any rate, is what its members proclaimed at the time and I, like a number of other voters, believed them. What emerged when the Green Party entered Government Buildings? I will not go there but will instead deal with the Fine Gael Party's Bill.

While this legislation is not perfect, I support in principle what it seeks to achieve, namely, a reduction in the cost of doing business and the removal of the burden of the State from the backs of businesses and ordinary householders. I support this concept in general and do not propose to elaborate on the specifics of the Bill. The more appropriate course of action is to discuss the Government's reaction to the legislation.

The Minister for Transport made excuses for the difference in contractual provisions on toll charges as between public private partnerships and the National Roads Authority. The Government made a hames of the contracts with PPP companies when it agreed them. No one on this side of the House inserted a clause stipulating that only inflation could dictate changes in the level of toll charges and deflation would not be considered. Despite the fact that he and his colleagues were responsible for these contracts, the Minister proclaimed this evening that the Government was powerless to do anything about them as to do so would leave the poor taxpayer having to pick up the tab. Taxpayers would not have to pick up the tab if the Minister and his colleagues had considered the issue at the time.

We also heard Government party Members refer to competitiveness. This returns me to the issue of tolls. Thankfully, as a result of the Celtic tiger, the sweat of many working people and the substantial contribution of entrepreneurs to the Exchequer, we have a number of new motorways. Rather than encouraging greater use of the motorway network, we are fleecing drivers who choose to use it. Motorways are designed to get one from point A to point B as quickly and safely as possible. One of the most competitive attributes a business can acquire is an ability to shift its people and products quickly from point A to point B. The system does not work in this way because we are ripping off businesses at every opportunity.

On energy costs, I return to the interesting contribution of the Minister of State, Deputy Calleary:

The overall objective of economic regulation, in markets where there were traditionally natural monopolies, is to create the conditions for competition to emerge to help drive down prices. We see today that competition is now emerging in the gas and electricity markets and consumers now have a choice of service providers.

Consumers may have a choice of providers but the ESB is not allowed to reduce its charges. Although the company may be allowed to reduce prices at the start of 2011, it is prevented from doing so now under a directive the Government issued to the Commission for Energy Regulation. As a result, we enjoy - dare I use that word - what are among the highest energy costs in Europe. This is the direct result of a Government policy which seeks to create competition through the establishment of an artificial market. As everyone knows, competition must be real because artificial competition will be found out, as was the case with the recent property bubble. The Government has been completely wrong-footed in this regard.

Despite a reduction of 10.4% in ESB charges in slightly more than one year, electricity prices remain exorbitant by any standard.

Comments

No comments

Log in or join to post a public comment.