Dáil debates

Wednesday, 9 October 2013

Gas Regulation Bill 2013: Report Stage

 

11:40 am

Photo of Denis NaughtenDenis Naughten (Roscommon-South Leitrim, Independent) | Oireachtas source

I thank the Minister and welcome his amendment, which is a significant step forward. I am glad he has listened to the arguments that were made on Committee Stage. It is fair and reasonable for us to acknowledge that here. Far too often, Ministers are not prepared to take on board constructive suggestions that are put to them. I acknowledge that the Minister, Deputy Rabbitte, has done so on this occasion. However, he knows that his amendment does not address the issue I have been raising. He has argued that his Department is not responsible for this aspect of the issue. This is the only opportunity we have to make any kind of provision with regard to the issue. This is the last time we will discuss the proposed sale of Bord Gáis Éireann. The Minister's predecessor was presented with a report from the Western Development Commission that dealt specifically with the problem of the provision of gas to the north west and the west midlands.

I will explain what I find hard to fathom. In fairness to the Minister, he has tried to be proactive in the case of the issue of broadband. I appreciate that many challenges have arisen in that regard. I hope we will soon see an initiative which will resolve many of this country's problems in that area. The Minister was proactive in dealing with the issue of market failure in that instance. He put incentives and financial supports in place. The significant challenge that the north west is facing with regard to gas - we cannot get gas into the region in the first place - also results from market failure. Some towns were marginally outside the eligibility criteria when the Commission for Energy Regulation conducted its restrictive cost benefit analysis. The Minister told us on Committee Stage that he is taking a hands-off approach to the Commission for Energy Regulation. He said he will not go near the commission to ask it to review its policy on conducting its evaluations. In other words, the people of the north west will have to wait for gas. The only other way we might be able to get gas is to hope the fracking industry, which has such a bad reputation in the United States, starts to do some fracking in the north west. I do not think that type of gun should be put to the heads of those involved in businesses and communities in the region. As citizens of this State, they have a right to access natural gas.

I spoke recently to an employer whose business, which is based in Roscommon town, is a high energy user. He told me that the energy costs of his business are 40% higher than those of businesses based in adjoining towns like Athlone and Mullingar or in the city of Galway, all of which have access to gas. The non-availability of natural gas is having a major impact not only on the viability of existing jobs in our region, but also on the potential for future jobs. The introduction of a carbon tax will undermine the financial viability of many of those businesses, which are trying to compete with other businesses in this country. I welcome the fact that employment has thankfully started to increase. As the Minister knows, the difficulty is that the increase in employment is centred on the Dublin catchment area. There is very little activity outside Dublin and the other cities.

The provision of gas would help to stimulate the creation of construction jobs and long-term manufacturing jobs in my region. I made the point on Committee Stage that the extension of the gas line to towns in the region would lead to an annual financial benefit of approximately €16.5 million for businesses in the region. It would also have an impact on job creation. The only opportunity we have - the Minister has ruled out every alternative - is to ring-fence for this purpose some of the funds generated from the disposal of Bord Gáis Éireann. It is within the Minister's control and competency to ask the Commission for Energy Regulation to re-examine the criteria and consider the issue of balanced regional development. Many of the 2,000 people who are leaving this country every week are moving away from my part of the country. Many communities are unable to field GAA teams because so many young people have departed. This problem is not confined to young people. I raised this sad aspect of the emigration issue during the summer. Whole families are leaving the region because they do not see any future or long-term hope that would encourage them to remain in this country.

There is a great deal of blue-chip foreign direct investment in my region, thankfully. I refer to companies like Abbott, which has facilities in Longford and Sligo. Such companies need to be able to access the gas network if they are to sustain the jobs they are providing into the long term. If the Commission for Energy Regulation continues to sit on its hands, the only mechanism available to us is to ring-fence some of these funds for this purpose. It is not possible for me to table an amendment that would have financial consequences, as the Minister so eloquently explained on Committee Stage. I have tabled an enabling amendment that places a responsibility on the Government to come back within two months of the disposal date of this asset, outlining how it intends to spend the proceeds from the said disposal.

I do not think I am asking for too much when I call on the Government to explain and justify how it intends to distribute this money. It will have to tell the European Commission how it intends to spend this money. However, the Minister is unwilling to legislate to ensure the elected Parliament of this country will have an opportunity to discuss this matter. I believe a commitment to revert to this House in this regard - to outline exactly how these moneys are being spent - should be laid down in statute. I would like to hear why these funds cannot be used to expand the gas network. This is our only opportunity to ensure gas is brought into a region that is haemorrhaging people at the moment. Communities are being decimated by emigration. This is an example of a definitive action the Government can take in support of balanced regional development. It would show that the Government wants people, investment and sustainable jobs to come to the region and stay there for the long term. I urge the Minister to reconsider his decision and accept my amendment.

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