Pat Rabbitte (Dublin South West, Labour)

I have received two reports on the safety aspects of Bord Gáis's award of a contract to the Balfour Beatty-CLG joint venture. As I have no direct role or responsibility in a tender process or contract award by a commercial semi-State company, the focus of my scrutiny in this instance is to ensure both BGE and the Commission for Energy Regulation have carried out their duties appropriately and effectively and that their respective assessment processes have been robust.

I have received a report from Bord Gáis whose management and board have a legal and fiduciary responsibility to ensure compliance with both procurement and safety requirements. I have also received a report from the regulator which has the statutory responsibility of regulating the activities of natural gas undertakings with respect to safety. The Bord Gáis report advises that the safety incidents previously highlighted by the Deputy, some of which date back ten to 15 years, should be seen in the context of the scale of the Balfour Beatty Group which employs over 270,000 people and has 163 subsidiary companies. The report provides safety statistics for Balfour Beatty Utility Solutions and CLG Developments Limited which are the partner companies in the joint venture. Bord Gáis considers that these compare favourably to UK and Irish construction industry statistics. The report advises that following a rigorous assessment process, Bord Gáis is satisfied that the Balfour Beatty-CLG joint venture is fully qualified to undertake its obligations to the high safety standards demanded by Bord Gáis Networks.

The regulator's report advises that, following a detailed evaluation of the change to the Bord Gáis safety case on foot of the new network services and works contract, the regulator has accepted the change and that a further verification process is in place, including audits and inspections by the regulator, to ensure the change is managed effectively.

My officials are assessing both reports together, with additional clarifications subsequently received, and will forward their own assessment to me shortly. In the interim and as I have no direct responsibility in the award of the contract in this instance, I have asked Bord Gáis to write directly to the Deputy on the issues he has raised.

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