Noel Coonan (Tipperary North, Fine Gael)
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Question 80: To ask the Minister for Communications, Energy and Natural Resources the plans in place to extend the natural gas infrastructure in north Tipperary; the timescale for doing so; and if he will make a statement on the matter. [4858/09]

Eamon Ryan (Dublin South, Green Party)
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The development and expansion of the natural gas network is, in the first instance, a commercial matter for Bord Gáis Éireann, BGE, which is mandated under section 8 of the Gas Act 1976, as amended, to develop and maintain a system for the supply of natural gas that is both economical and efficient. The Commission for Energy Regulation, CER, which is a statutory, independent body, has, since 2002, been charged with all aspects of the assessment and licensing of prospective operators who wish to develop and-or operate a gas distribution system within the State under the Gas (Interim) (Regulation) Act 2002. I have no direct statutory function in the connection of towns to the gas network.

The CER in 2006 approved a new network connections policy, which created the opportunity to reassess the feasibility of connecting certain towns to the gas network. In order for any town to be connected to the gas network, certain economic criteria need to be satisfied as a prerequisite. This is to ensure that, over a certain period, the costs of connecting the town to the network are recouped through the actual consumption of gas and the associated tariffs. The policy allows for the appraisal of a town either on its own or as part of a regional group of towns.

In this context, BGE is carrying out a comprehensive assessment of towns not already connected to the national gas network. I am advised that Ballina and Newport in north Tipperary are already connected to the natural gas network. Nenagh, Roscrea and Thurles are included in a total of 42 towns being examined as part of phase three of this assessment, which is scheduled for completion in April this year. BGE's final report will outline which towns or groups of towns would be economically viable for connection, within the revised connection policy criteria. In the event that the appraisal indicates that Nenagh, Roscrea or Thurles are viable for connection, I am advised that it may be possible to assess additional towns in close proximity in that context.

Noel Coonan (Tipperary North, Fine Gael)
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I am disappointed that the Minister started his reply by stating he has no responsibility for this and that it is a commercial matter for Bord Gáis Éireann. Preliminary results from the analysis carried out by DKM indicate subvention from the State will be required to have gas delivered to the towns of Thurles, Nenagh and Roscrea. According to the report, a sum of €11 million will be required in the case of Thurles, but it is only €3 million if it is linked with Callan and Tipperary town or a cluster of towns.

The Minister should not hide behind Bord Gáis. The Government must put facilities in rural Ireland that facilitate job creation and competition and enable industry to thrive and prosper in those areas. Will the Minister's Department commit money under the national development plan to enable the IDA, which is promoting industry in the area, to put money into those schemes for towns such as Thurles, Nenagh and Roscrea? Will the Government rise to the occasion and ensure there is competitive infrastructure in rural areas like elsewhere in Ireland? Industries such as creameries and bakeries are at a disadvantage of possibly 30% when compared to similar industries in other counties that have the facility of natural gas. Will the Minister indicate that the Government is committed to supplying the funds to enable Bord Gáis, as it wishes and is prepared to do, to provide this infrastructure in north Tipperary?

Eamon Ryan (Dublin South, Green Party)
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I would be happy to see gas being provided to Tipperary, Thurles, Callan or any of the towns mentioned. However, we must revert to the discussion we had earlier. We must keep our electricity and energy prices low and competitive. It would be easy to come to this side of the House and take on responsibility for the allocation of infrastructure such as this if one could promise it left, right and centre and disregard the actual cost to the consumer at the end. If a grid was built to an area where there might not be an economic case for doing so, and I am not saying that is the case in any of those towns, it would put the price of gas and electricity up for every other town. Any Member of the Opposition would scream foul and point out that the gas prices were too high. That is why this issue is left within the regulatory system and Bord Gáis. It is not a political decision. It is better that it is done on an assessment of how to keep prices low as well as providing the obvious benefits of gas for manufacturing, bakeries and so forth. We cannot have it both ways. We cannot scream prices are too high and in the next breath scream that the grid must be built to a place where it might not be economical but might bring other benefits.

Noel Coonan (Tipperary North, Fine Gael)
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I do not accept the Minister's analogy. Infrastructure must be put in place to attract people and industry to an area. What was the cost of the 35 jobs that were lost in Taylor Made, Templemore, yesterday because of energy prices, following the 24 lost last December? That is a total of 59 job losses. What is the cost of that to the State?

Eamon Ryan (Dublin South, Green Party)
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I want to bring gas to those locations to bring the cost of energy down to help people keep their jobs. However, in doing so, one must be careful that one does not cause jobs to be lost in another town because the price of its gas connection is increased. There is a complex algorithm and a complex balancing act that must be done to meeting the economic objectives of having a wider gas network, at the same time keeping our gas prices low so that we hold on to the jobs we have.

Noel Coonan (Tipperary North, Fine Gael)
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We need equal treatment in rural Ireland. We do not want all the money spent within the Pale.