Eamon Ryan (Dublin South, Green Party)

I am pleased to be here to respond to this matter and to give a perspective on a critical project and one that is sensitive to the local community. The Government, in turn, is sensitive to that, as are all public representatives, who have held discussions, and with the members of the community council, who have had discussions with me regarding the project.

The interconnector is of critical national infrastructural importance. It will give us greater security of electricity and lower prices. It is a critical project and it is in the national interest that it be developed.

EirGrid, the State owned independent transmission system company is building the interconnector. It went through the planning process in September 2009, getting full permission from An Bord Pleanála under the Strategic Infrastructure Act. My Department has no direct role in the planning process. Formal approval followed a comprehensive assessment process, including an oral hearing at which stakeholders, including Rush Community Council, were present. I believe EirGrid has engaged extensively with communities along the route, including the local community and public representatives.

The work starting currently is to put in the piping but not the cable. I understand that will not start until mid-2011. The ducting must go in now because other infrastructural works are planned by Fingal County Council for 2011. The ducting is being combined with other local council works.

During the planning process, including the oral hearing, the matter of health and safety, and the further concerns of the community council, were covered. We commissioned Dr. van Rongen, who is recognised as an international expert. He is a member of the Netherlands Government health council and of the advisory committee of the World Health Organisation international EMF project. I was pleased to be able to commission him to undertake a review. That report is available on my Department's website, which I know the Deputy has seen.

Further to that, work is ongoing between Rush Community Council and EirGrid on the separate issue of the operational safety of the project. KEMA consultants are undertaking a report on that, by mutual agreement.

The planning process has been gone through and time is tight on this very significant €600 million project. Funding is provided by a very competitive arrangement entered into by EirGrid - with Government approval - with the European Investment Bank and a number of major commercial banks. Funding of €110 million is also being provided by the European Energy Programme for Recovery to assist the project. The key determinants for the award of funding by the EU Commission were the demonstrable state of readiness of the project and the strategic importance of the interconnector in its own right.

Having got planning permission, EirGrid was able to place contracts with ABB, the manufacturers of the cable. As Deputy Reilly intimated, getting the cable is a very difficult process. There is huge demand, huge back orders and huge timeline constraints. The securing of planning permission was a condition precedent to the agreement and drawdown of commercial bank and EIB funding. If we were to re-route, an entirely new planning application would be required, which would take approximately two years to process without any guarantee of success. This would seriously jeopardise the funding arrangements in place, with real cost implications for Irish electricity consumers. I understand the European Investment Bank and the European Commission are monitoring the progress of the project. The prospect of a delay would be received very negatively by those two institutions. A delay would risk funding and damage the reputation of the country in terms of winning planning permission, given that one organises contract arrangements on the back of such permission. If the project were not completed, it would call into question Ireland's ability to proceed with similar projects.

I understand that if the proposed works were delayed beyond November, the cost of the delay would amount to €12 million immediately, with knock-on costs accruing thereafter. I am told EirGrid estimates that every day's delay would add approximately €100,000 to the cost of the project. This would be added directly to electricity consumers' bills. Any delay in getting under way with the works would affect other scheduled project works and other infrastructure projects. It would have a real effect on the ability of the State to deliver a project of considerable importance and with considerable budget implications.

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