Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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Question 5: To ask the Minister for Communications; Energy and Natural Resources if he will rely in the main on investment in modern industry through State companies such as the ESB and others to generate economic growth and jobs in view of problems (details supplied). [30361/11]

Pat Rabbitte (Dublin South West, Labour)
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I can assure the Deputy that employment creation is the central economic objective of the Government. This issue encompasses a number of key Departments, including Enterprise, Jobs and Innovation, Finance, Public Expenditure and Reform, Education and Skills, and this Department.

In so far as my own responsibilities are concerned, I have statutory responsibility for the State energy companies as well as for RTE and An Post. I also have more general responsibility in the areas of energy and telecommunications which impinge on competitiveness.

It is the case that ESB, Bord Gáis Éireann, EirGrid and Bord na Móna have invested significantly and cost effectively in Ireland's energy infrastructure and the energy sector over the last decade. Their current corporate strategies, in line with my overall objectives for the energy sector, commit to continued investment in the energy networks and in renewable power generation.

The investment programmes of these successful State companies are critical for the regeneration of the economy, for inward investment and for regional development. ESB, BGE and Bord na Móna have consistently paid dividends to the Exchequer over recent years and are major employers as well as generators of economic activity.

EirGrid, as the State-owned transmission system operator, operates the successful single electricity market, thus ensuring security of energy supply for business and consumers. EirGrid is currently completing, on behalf of the Government, the construction of the east-west electricity interconnector and is working to roll out vital transmission infrastructure under GRID25. The investment in interconnection and the transmission grid is critical for the economy and for achieving our ambitions in renewable energy.

The Government recognises that the cost of energy in Ireland is a serious competitiveness issue facing energy consumers during this difficult period for the economy. The provision of secure, sustainable and competitive energy supplies is critical for the economy and is a challenge we are determined to meet.

Additional information not given on the floor of the House

The competitive nature of the Irish energy market, which is characterised by price transparency and the highest level of customer switching in the EU, helps put downward pressure on prices. In addition, we must focus on all possible additional actions to mitigate costs where possible for business and domestic customers. Additionally, from an electronic communications policy perspective, competition and investment certainty have given rise to significant competitiveness improvements over recent years. New entrant service providers have increased choice and quality and driven prices downwards, all to the benefit of business and residential customers.

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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I thank the Minister for his reply. Would he agree that the policy of relying on the private sector to create jobs and solve the economic and social crisis in this country has failed? He himself stated that the various companies under his umbrella have been successful. In the early years of the State, companies like the ESB, Bord na Móna and the Irish Sugar Company were the key drivers in the economy and in creating jobs in the economy.

We now have a situation where nearly 450,000 people are unemployed. We have lost more than 6,000 jobs since the Government came into office, while another 950 jobs were lost today at Aviva. Merck Sharp & Dohme has announced 40 job losses, while jobs were recently lost at TalkTalk and MBNA. Does the Minister agree it is now necessary for the State to provide investment for State companies to create jobs, because the private sector clearly has failed and cannot deal with our current situation?

Pat Rabbitte (Dublin South West, Labour)
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I agree with the Deputy that we have a huge unemployment problem. There is no doubt about that. It has been made immeasurably worse by the collapse of the construction sector, and therefore a huge segment of construction workers, with varying levels of skill, are out of work. That is the huge mountain this Government must try to scale.

I cannot agree with the Deputy if he is saying that the private sector has failed and we should rely on the State companies. It is not one or the other. We live in a mixed economy. State companies have made a significant contribution to employment, as well as discharging their responsibilities on the supply of energy, telecoms, postal services, cutting turf and so on. Without the role of the multinational sector and without the role of thousands of small and medium sized enterprises, however, our unemployment situation would be a great deal worse. I cannot agree with the Deputy that it is either-or, but I agree with him that wherever we can extract value and cause employment to be created, that ought to be our target.

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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Of course I never suggested that it is either-or. The current situation is that the private sector has simply failed to create the jobs. The jobs the sector has created are obviously very welcome. I am suggesting that we cannot be excessively dependent on either the private sector or foreign direct investment and that we must invest in our own State and semi-State companies to create jobs.

We are due to pay €3.5 billion to unsecured bondholders in Anglo Irish Bank, and I think €700 million of that is to be paid in the next few days. Can the Minister assure the House that we will get at least the same benefits as those proposed for Greece, whereby the claims of these bondholders will be reduced by 50%? The €1.75 billion saved on that reduction should be put into State companies for direct job creation.

Pat Rabbitte (Dublin South West, Labour)
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I agree with the Deputy about leveraging jobs in the State sector wherever we can. The Minister of State, Deputy O'Dowd, has been preoccupied with this issue for more than the last six months. Wherever we can source investment for the creation of new employment connected with the State companies, we will do that. For example, one of the major projects the Minister of State, Deputy O'Dowd, has been concerned with is the creation of a water utility company. Therefore, I have no difference with Deputy Healy on that issue.

As regards the prospective settlement in the eurozone concerning the Greek debt problem, the Deputy will have heard the views of my colleague, the Minister for Finance, Deputy Noonan, including his public statements on the bondholders issue as it relates to Anglo Irish Bank. At this stage, I do not know - I do not know if anybody knows - whether a settlement in the wider eurozone will be concluded this weekend. Plainly, it is a matter that concerns all member states and especially Portugal and Ireland. What concerns us particularly are the settlement terms to be agreed. It is important that there be a settlement, if not at the weekend, then as soon as possible thereafter.

Séamus Healy (Tipperary South, Workers and Unemployed Action Group)
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It seems to be taking a long time.