Finian McGrath (Dublin North Central, Independent)

I thank the Chair for the opportunity to speak on the Bill. Its purpose is to end the charging of the carbon revenue levy on enactment to cease the inclusion of the carbon revenue levy in wholesale electricity prices bid into the single electricity market, thus ending the associated wholesale electricity price increase thereafter. I welcome the Bill and I commend the Whips of the different parties who moved on this issue.

It is an important Bill. Every day of delay in enacting the legislation increases the electricity cost burden on large industries which sought price increases shortly after the March implementation of the judgment. Delay increases the possibility that the electricity prices faced by small and medium-sized businesses and domestic consumers may also rise. This is at the core of the legislation. It is up to all Members of the Oireachtas to support small businesses, particularly at their time of need in the current economic climate. This Bill deals with this aspect and I will develop my points later in this regard.

This is why the Minister wants to give this area urgent priority. If we are serious about supporting these matters, we need to put all parts of the jigsaw in place in order to retain and develop jobs and economic growth. Electricity charges are an issue which can help in this debate if we want to fill that part of the jigsaw and deal with the reality of the situation on the ground.

We need to be creative, radical and progressive. We need strong elements to deal with energy costs in this country. This is why I support the Bill, which is linked to all the talk we have heard in recent weeks about growth and jobs. We need strategies that exist to bring our people back to work or keep them working, which is a major concern of mine at present. Almost every other EU state has different protection schemes in place and unemployment is already beginning to fall in some countries because such schemes are in place and they have dealt with energy costs as part of that strategy.

When we consider the banking situation, the bill for Anglo Irish Bank alone could rise to €35 billion or more. Even conservative forces such as the Financial Times or Barclays Bank are suggesting our banking plan is lunacy because it places the entire burden on the taxpayer. This is also linked to the debate on the Bill because we must deal with the two issues of the energy costs but also the burden that is around the country's neck. Therefore, in addition to discussing the energy costs issue, we must also link that to constructive proposals to try to solve the problem.

As I said, we need to prioritise jobs and growth. We cannot cut our way out of crisis. That is not working and has not been working for the past 12 months. We also need to end the uncertainty which currently exists in this country. Many of us have come up with different policies in our own constituencies. For several years, I have proposed the idea of a jobs strategy to assist the unemployed in my own constituency of Dublin North-Central. I proposed a plan, supported by all the local small businesses, that all those who are working and those over the age of 50 who have a few extra bob to spend would spend €20 extra per week in local businesses. We have targeted this campaign at people who have savings, such as the over-50s who have a few extra bob. There is approximately €75 billion in savings currently sitting in our banks. If people spend an extra €20 a week in local shops and small businesses in their own communities, I believe we can create an extra 20,000 jobs.

That is one thing we can do. What the Minister is doing in this Bill is trying to assist those small businesses with regard to energy costs. When I talk about businesses, I mean stores, printing companies, small shops, pubs, restaurants and all similar small projects that make a huge contribution and need a lift. We should not forget that many of these small businesses that employ five, ten or 15 people are significant employers.

To return to the Bill, we must deal with the issue of energy costs and this detailed legislation is part of the solution. However, there are other issues, such as rates and rent. There are thousands of people employed in these small businesses and the Government needs to move swiftly on these matters as well as on the issue of energy costs. I was talking to a small businessman last night who told me he got a reduction of only €29 on his rates in the Dublin City Council area. We need to assist these business people so that they can employ more people and use their resources.

The substantive provision of this Bill is to bring forward the end date of the final carbon revenue levy period in the Electricity Regulation Act 1999 from 31 December 2012 to the date of the enactment of this Bill. Section 1 provides for the amendment of section 40D, the carbon revenue levy, of the Electricity Regulation (Amendment) (Carbon Revenue Levy) Act 2010 in subsection (4) by substituting the date of the passing of the Electricity Regulation (Carbon Revenue Levy) (Amendment) Bill for 31 December 2012.

I agree with my colleague, Deputy Boyd Barrett, on the issue of privatisation with regard to energy. This is a dangerous road to take. We need to retain energy companies in public ownership because that will assist us not alone in the area of energy, but in the area of job creation. The energy sector has been a huge employer in this country since the foundation of the State. There is currently approximately 14% unemployment here, but approximately 30% of our young people are unemployed. We will not hear this story told in the debate on the treaty and jobs and growth. Despite emigration, we still have this high unemployment rate among our young people. We must be conscious that we are losing this generation. Many young people have new ideas, particularly in the context of energy issues. Many young people have ideas for creating small businesses and they should be encouraged to help develop these. These young people are aware that energy has a significant role in that regard.

The Minister mentioned earlier that he was concerned about the high prices connected with oil and gas. I agree. However, he must open his eyes on the international stage and use Ireland's clout as an independent foreign nation to work closely with the oil producing countries. He must build relationships, not close them down. I was very disappointed when we closed down our embassy in Iran. I am also very disappointed with the shenanigans going on between the European Union, the US and Iran and the row about nuclear weapons. I met the Iranian ambassador a number of weeks ago and he told me straight that there are absolutely no nuclear weapons in Iran. He said that not only does he know that, but the US knows it also. What is going on and why is there a scrap going on about this? Iran has massive energy resources but this scrap could put energy prices through the roof over the next couple of months. I urge the Minister to go back and tell his Cabinet colleagues to wise up and look at the situation. He should tell them that we must deal with these international issues also because they all relate to energy costs.

The issue of renewable energy must be put at the top of the political and energy agenda. Not only is there huge potential to deal with energy costs and future potential crises, but this issue is also linked to job creation and support for the 30% of our young people who are unemployed. This agenda should be developed further in this debate. This legislation gives us the opportunity to tackle that head on. This Bill, with its single provision to amend the date of the ending of the levy, will have the effect of terminating the charging of the carbon revenue levy from the date of enactment. Once levy charging is terminated, the electricity generators will not have this charge as an allowable cost in the price of electricity, thus ending the associated wholesale electricity price increases.

I welcome this debate and encourage the Minister to take on board some of the views of the Technical Group, which has lots of ideas on energy costs. I will support the legislation.

See this speech in context