Pat Rabbitte (Dublin South West, Labour)

Investment in the development and maintenance of Ireland's gas and electricity network infrastructure is of fundamental strategic importance for the economy. Secure and reliable energy supply is a prerequisite for inward investment, for indigenous enterprise and for all consumers. Energy is the lifeblood of all economic production, whether in the high-tech ICT and bio-pharmaceutical sectors, the services sector or indigenous sectors such as agrifood.

Ireland has achieved a reliable and modern electricity and gas infrastructure over the past decade. The building of these modern and reliable energy network systems was achieved by extensive and well executed investment by the State-owned network companies, ESB, Bord Gáis Éireann and EirGrid. The networks must be maintained and enhanced as necessary to ensure Ireland has an energy infrastructure which is fully fit for purpose. Investment in strategic energy infrastructure is a key priority for the European Union.

The Government fully endorses the strategic national importance of investing in Ireland's electricity transmission infrastructure. Delivery by EirGrid of its national grid development strategy, known as GRID25, is critical to economic recovery, regional development, security of supply, competitiveness and the achievement of Ireland's renewable electricity targets. The east-west electricity interconnector between Ireland and the UK will be completed by the end of next year. Investment in the networks and infrastructure by Bord Gáis Éireann, ESB and EirGrid in recent years has been significant. The importance of the investment was demonstrated in the very adverse weather conditions in 2010 when the gas and electricity networks were shown to be robust and reliable.

The Government recognises the importance of the energy sector to the economic and social functioning of the State, and that the State must continue to have a strong and direct presence in electricity, particularly in the regulated transmission and distribution networks. The same principle applies in the gas sector. This presence must be maintained in a way that protects overall economic competitiveness and does not deter private investment. The process to analyse options for the minority stake sale in ESB will fully reflect these principles.

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