Ulick Burke (Fine Gael)

I welcome the Minister. I also welcome the Bill, in so far as it indicates a clear acknowledgement of the need to upgrade the ESB network and continue its expansion. It is time to re-assess the provision of our electricity supply. In order to upgrade a plant such as Moneypoint to comply with EU regulations regarding CO2, we have been told that the increased cost to the consumer could be as high as 20%. At the same time, we are effectively stifling the production of electricity by cleaner and less expensive means. Why can we not reconcile both approaches?

Over the years we have seen the phasing out of the old peat burning stations throughout the country. One of the first to go was Screeb in Connemara, followed by Bellacorick, Milltown Malbay and Caherciveen along the western seaboard. Peat burning stations in the midlands are now being closed, which we recognise is being done because of inefficiency.

We must also acknowledge the co-operation of Bord na Móna with the ESB over the years in the production of electricity and the provision of a continuous supply at difficult times when other sources of energy supply were threatened. Will the Minister comment on our potential for clean energy production, especially from wind?

In terms of what happened at Derrybrien in County Galway, enormous damage was done by a subsidiary of the ESB to the confidence people could have in alternative energy sources, a matter I raised previously with the Minister in the House. That subsidiary, Hibernian Wind Power, was reluctant to admit its failure at that site. Apart from fears among the local community concerning that incident, it had a serious impact in terms of the potential development of wind energy throughout the country.

Many local co-operatives groups and private individuals, who are landowners and engaged in joint farm ventures to gain an alternative source of income, had been progressing applications for wind farms. The confidence of potential financiers in terms of investing in these projects was immediately blown. They changed the methods and the way in which they would finance such projects in future as a result of the hesitancy and stubbornness of Hibernian Wind Power to come forward and recognise it was the cause of that landslide. Those engaged in many similar projects that were at planning stage or at advanced planning stage and in the process of being financed found it difficult to advance them. It is unfortunate regarding the development of wind energy that this happened and the way in which it was handled by that subsidiary of the ESB is regrettable.

Will the Minister comment on the fairness of access to and distribution of contracts to those seeking contracts with the ESB to access the national grid? From the distribution of contracts at the last offering, it is clear there is a strong bias in favour of subsidiaries of the ESB. I am not sure why that is the case. Is there a fear of competition from alternative sources of energy and alternative providers? Major investment and confidence in alternative energy sources has been instilled by many private individuals, landowners and co-operative groups who have shown that this the way to go. However, there seems to be a reluctance within the ESB management or board to accept there are alternative and cleaner methods of supplying energy. Nobody wants to see Moneypoint closed by 2011 because of the major proportion of energy it supplies. If that happened, how could we replace the proportion of power generated by that station by alternative energy means or at alternative locations?

Will the Minister consult the ESB and ask it to be open and transparent about access to the national grid? As he is aware, the IDA and other industrial managers have indicated there is a deficit in energy supply to meet requirements in the west. We welcome the provisions of the Bill if it is proposed to upgrade the national network, particularly in the west where there is a deficit in supply identified by major industrialists who wanted to establish there.

Senator Kenneally and other praised the ESB on its work. It is important to recognise the professionalism of its workers who deliver services at all levels throughout the country. The ESB has probably one of the greatest records and received the fewest number of complaints of any service provider in the country.

Much concern about the impact on health of living adjacent to high tension power lines has been expressed by people living close to them. This issue has never been fully addressed. While there is a concern in that regard, there will always be opposition, whether it is short-lived or otherwise, to the location of such lines. Many people have legitimate concerns that living adjacent to such power lines causes health risks. While the World Health Organisation has clearly indicated there is no health risk or link to cancer associated with living near such power lines, it is important if there is to be an increase in the ESB's expenditure, as proposed in the Bill, to upgrade the network that such concerns are addressed. I ask the Minister to comment on that issue. The upgrading of 17,000 km of the network is a very welcome development.