Eamon Ryan (Dublin South, Green Party)

It makes sense because this is a regulated asset which provides a steady regular return. There is very low risk attached to it. It broadens the regulated asset base which provides the company with stability and does not push up gearings to the high levels, in regard to which the Deputy expressed concern. This makes business economic sense. The acquisition has been examined at length because it is a large deal.

On the Deputy's strategic point that we should not be investing in Northern Ireland, I disagree with that. We have during the pass three years moved to a single electricity market which is to the benefit of people North and South. This deal will further develop that. There will be economies of scale from this and developments on the network in the North will benefit from ESB's involvement. Through this single integrated distribution network we can gain efficiencies across the Border regions and on our whole network. We have huge advantages on this island in one of the fastest growing areas of the e-economy, namely, smart grid, because we have a single distribution network. That is advanced by this deal, which makes strategic and economic sense. I do not understand Deputy Varadkar's figures.

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