Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

Yes, the usual procedure will be followed. The report will laid before both Houses and it is for the Whips to agree when to roster it.

Deputy Naughten took the opportunity to set out again the arguments why it is important his region accesses the gas network and for industrial development in particular. I fully appreciate his arguments. I met the Western Development Commission following the publication of the report. I have a great deal of sympathy for the arguments set out. The problem is that, as Deputy Naughten knows, a system has been in place since, I think, 2002, whereby decisions to extend the natural gas network are made on the basis of economic viability tests. The north west region has not been deemed to meet those tests. That is being reviewed all the time and there are new applications all the time. For example, earlier this year Midleton was connected up. It was also agreed that Nenagh would be connected after a re-examination which, if my sources are correct, was based largely on the needs of a large employer, which played a significant factor in the economic assessment of whether it would be viable. The same consideration was made in Wexford town.

It is not, alas, a case of ring-fencing funds to enable the installation of the national gas network; rather, it is a question of the economic viability of the gas link. As things stand, a regulatory model assesses viability, and the model must apply unless the House decides to drive a coach and four through it. It is a chicken and egg situation. If there were a major employer sourced in one of the towns that Deputy Naughten has in mind, that would likely change the economic assessment of that town.

The Commission for Energy Regulation, which is a statutory, independent body, has since 2002 been charged will all aspects of the assessment and licensing of prospective operators who wish to develop and or operate a gas distribution system. The legislation that underpins these powers is the Gas (Interim) (Regulation) Act 2002. As the Minister for Communications, Energy and Natural Resources, I have no direct statutory function on the connection of towns to the gas network.

The regulator in 2006 approved a new network connections policy which created the opportunity to reassess the feasibility of connecting certain towns to the gas network. The policy was reviewed in 2011. In order for any town to be connected to the gas network certain economic criteria need to be satisfied as a prerequisite. The policy allows for the appraisal of a town on its own or as part of a regional group of towns. The regulator policy ensures that the costs of connecting a town or a group of towns to the network are recouped over a certain period through the economic consumption of gas and the associated tariffs, otherwise uneconomic projects will increase costs for all energy consumers.

I cannot be unmindful of that last point either. That is the system that has been operating. It is a dynamic situation. There have been decisions pretty much every year to connect new areas of the country depending on the economic criteria. I appreciate the arguments being advanced, but as Deputy Naughten admitted, it is not to do with this Bill but is an opportunity to ventilate the questions he has raised. The question of whether we want to revisit the 2002 Act is a separate question. If the issue is that it is no longer fit for purpose, that is a different question. Most people would accept that the business of us agreeing to connect the entire country, even where it would be manifestly economically unviable to do so, would drive up the cost of energy for all users.

Deputy Colreavy opposes the Bill. I respect that because it is his right to do so. However, we went through this on Committee Stage and I cannot agree that selling the energy business of Bord Gáis Éireann is in any way a blow to the national interest. Rather, I see the energy business growing in the future while the development of Irish Water under the aegis of Bord Gáis will see more people employed by Bord Gáis than ever before. That is happening as we speak. Whoever buys the energy company, one would expect that new investment will be brought in and jobs expanded in that company in the future.

Given the circumstances in which we find ourselves where we do not have an alternative in terms of the deal done on the bailout and the injunction on us from the troika, we do not really have a choice but to proceed with the sale. Deputy Colreavy is probably right to express his opposition to the Bill rather than seek to amend it because he agreed on the last occasion that his amendments did seek to oppose exactly the relevant sections of the Bill, which is fair enough.

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