Michael Kitt (Galway East, Fianna Fail)

I welcome the opportunity to speak on the Bill and thank the Minister for introducing the legislation. He has taken a common sense approach despite having to take the decision quickly because carbon windfall gains only exist up to the end of 2012. There is a short period of use.

With regard to the €300 million rebate announced by the ESB which has reduced prices, it is fair to say we had a very cold winter and start to the year, so it was important that the reduction came about. It was difficult for older people in particular. I welcome the Minister's comments on the all-island wholesale electricity market but I would raise the question of how this affects us. We are signatories to the Kyoto Protocol as well.

I am glad that Tynagh in Galway has been mentioned, along with Aughinish. Tynagh is not an old plant and although it is conventional, much good work is being done there. I support Deputy Coveney's comments on biomass. It is important to emphasise that gas prices are lower because there has been a great variation in oil prices. Oil is now dearer than ever before and in discussing competition and exports, we must hope that the figures for gas will stay low and the oil price will not increase. We would like to see reductions. Ireland has had the second-largest reduction in gas prices for businesses in the EU, and it has seen the third-largest reduction in electricity prices for both businesses and householders.

In Tuam, there is a good example of bodies working together, particularly where the ESB is putting down infrastructure in conjunction with gas, telecoms and the broadband which the Minister provided money for as part of a €30 million package for the Tuam water and sewerage scheme. I would like to see more of those pipes going underground, as would tidy town committees. Many school boards of management have written to us saying that they would like to see ESB lines underground.

The Minister for Finance spoke about a carbon tax, inclusive of VAT, yielding approximately €250 million in 2010. He mentioned this would boost energy efficiency, support rural transport, which is very important in a rural constituency like my own, and alleviate fuel poverty. The question of fuel poverty must be tackled as we help people on low incomes. I am told we cannot ring-fence revenue for specific purposes but those areas are important and there should be investment in them.

There has been much concern about increases in prices for petrol and agricultural diesel but there would also be concern if other fuel products see price increases. It is important that with this Bill we see funding in the short term to ensure progress in this regard.

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