Dáil debates

Wednesday, 18 January 2012

1:00 pm

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)
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Question 2: To ask the Minister for Communications; Energy and Natural Resources if he is satisfied with measures being undertaken for the maintenance and safety of the Bord Gáis grid. [2888/12]

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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Bord Gáis Éireann is the owner of the national gas transmission and distribution systems, and is mandated with the development and maintenance of the natural gas network under the Gas Act 1976.

The Commission for Energy Regulation is the statutorily independent body charged with all aspects of the licensing of transmission and distribution operators. A key legal responsibility of the regulator is to promote the safety of natural gas for customers and the public generally.

The regulator's remit now also includes specific responsibility for natural gas safety. The Energy (Miscellaneous Provisions) Act 2006 empowered the regulator to regulate from a safety perspective undertakings involved in gas transmission, distribution, storage, supply and shipping. The regulator has established a natural gas safety regulatory framework, including a system for the inspection and testing of natural gas transmission and distribution pipelines. The regulator places obligations on undertakings to ensure that any safety risks associated with their operations are reduced to as low as reasonably practicable. Bord Gáis Éireann's transmission and distribution operations are subjected to ongoing audit and inspection by the regulator. Additionally, Bord Gáis Éireann reports quarterly to the regulator on a comprehensive range of safety performance indicators to verify that all operations are in compliance with the overall natural gas regulatory framework.

Safety is Bord Gáis Éireann's first priority and the company is committed to ongoing development and maintenance of the gas networks and systems to ensure safety and to deliver continuous safety improvement and performance. Bord Gáis Éireann also has a continuous programme of safety promotion including the gas efficiency service, the dial before you dig service, promotion of registered gas installers and public awareness of the dangers of carbon monoxide. Since its establishment Bord Gáis Éireann has developed and modernised a national gas distribution pipeline network of nearly 11,000 km and a gas transmission pipeline network of over 2,000 km as well as the two interconnectors with Scotland. There are over 640,000 gas users in Ireland. Bord Gáis Éireann operates the networks in compliance with recognised Irish and international quality and safety standards.

I have every confidence in Bord Gáis Éireann's priority commitment to safety and its safety and emergency response service. There is never room for complacency however and Bord Gáis Éireann is engaged in a constant process of safety review and enhancement working with regulator.

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)
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Is the Minister aware that a British company, Balfour Beatty, has been awarded a €400 million contract for the maintenance of Bord Gáis? Is he aware that this company was fined £1.2 million in 1997 following the collapse of the tunnel at Heathrow Airport, which it built? Is the Minister aware that, in 1989, the company was fined £500,000 after a train derailed on a section of the line laid by that company? In 2006 it was fined £7.5 million after a train crash cost four lives and 100 injuries on a section of rail line the company maintained. In 2007, it was fined £180,000 after a fatal electrocution of one of its line maintenance workers. In 2008 it was fined £2.25 million after the Serious Fraud Office found the company guilty of false accounting. In 2009 it was fined £5.2 million by the Office of Fair Trading for corrupt practices in securing construction contracts. Given the record of Balfour Beatty, does the Minister think it is a suitable company to have responsibility for the safety of the gas network?

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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The Deputy has read a list of allegations. The tendering process was in accordance with the requirements and the tender for services was issued through the EU Journal. I am aware of some of the background to what the Deputy said but he has made a list of allegations that I cannot say are true or otherwise. The tendering process was designed to bring in a company that had expertise and a track record. The advice I have is that the company is capable of discharging its responsibilities. I will examine what Deputy Ferris has put on the record of the House, some of which is entirely new to me.

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)
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I understand that this matter predates the Minister. Is the Minister aware that 13 February is the deadline and that the company, Balfour Beatty, must have 50% of current contractors under subcontract to it? One of those subcontractors is Emerald, which the Minister knows about from Kildare in the recent past. Is the Minister aware that a member of the board of directors of Bord Gáis was chairman of the subcommittee that awarded the contract? Ironically, his office is the Dublin address of Balfour Beatty but he claims not to have taken part in the process. I do find it very strange that his offices accommodate a company that is now-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Deputy Ferris should be very careful.

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein)
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Is the Minister aware of that?

Photo of Pat RabbittePat Rabbitte (Dublin South West, Labour)
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All I am aware of is that due care was taken in selecting this company. My understanding is that some of the allegations raised by Deputy Ferris were raised at the time. I am advised that they were satisfactorily disposed of at a time. Having regard to what the Deputy put on the record, I will investigate the matters raised because they are serious allegations.