Paddy Burke (Fine Gael)

I welcome the Minister. When I was young I was told to keep away from two items, the fire and electricity, but I am not sure that is what youngsters are told today. The change that has taken place regarding the way electricity was installed in houses up to 50 years ago compared to the way it is done today is unbelievable. The average household uses far more electricity today than was used by a household 20 years ago. There are many more gadgets and implements powered by electricity than there were 20 or 30 years ago. It is easy to understand how the consumption of electricity has increased dramatically in the past number of years.

I greatly appreciate the work done by ESB employees. As Senator Kenneally pointed out, in wind and rain, on a Monday or a Sunday, ESB workers always came to the rescue if power lines were down and whether it was for business or private individuals, they always did the work promptly and efficiently. The ESB was always a well-run State body and a model for other companies, many of which did not progress along the lines of the ESB. Everybody admired the way it went about its business.

I will not hold up the passage of the Bill but I come from an area where the infrastructure is not what it should be in comparison to other areas. As Senator Ulick Burke pointed out, there are some difficulties getting infrastructure in place when objections, are made by various people. I compliment Maol Muire Tynan, whom I am delighted to see in the Chamber, because since she joined the ESB she has done great work in outlining to public representatives what is happening there, how it is going about its business and what is required to help with the infrastructure. She has done a great job from a public relations point of view, which has major benefits for public representatives also.

The Minister said borrowing has not changed in the past 22 years and that the ESB has many sources of financing, including the European Investment Bank, syndicated facilities and bilaterals leases, the private placement market and non-recourse financing. He said the putting in place of the US private placement in December 2003 has given the company a significant financial boost.

The Minister also stated the ESB entered into a separate €500 million revolving credit facility at the end of 2003 and that this facility, which was co-ordinated by the Royal Bank of Scotland, will be drawn when necessary to ensure liquidity is constantly available and will, therefore, assist ESB's overall funding programme. He indicated the figure for borrowing, £1.6 billion, for the past 22 years has been much the same. However, the Royal Bank of Scotland is providing €500 million and there is a private placement with a US firm. If the ESB goes public, will those interests become involved in share dealing and will they be able to obtain a portion of the company? How does the private placement operate and is it another form of funding or borrowing?

The Minister stated the figure for borrowing, £1.6 billion or the equivalent of €2.3 billion, has remained unchanged for the past 22 years. However, I take it that the figure has changed because the ESB has borrowed further moneys through the private placement and from the Royal Bank of Scotland.

I welcome Minister's statement that he strongly opposes the privatisation of the transmission and distribution system because they are critical national assets and should remain in State ownership. It is a pity Eircom did not go down the same route because there are certain rural areas, which are not getting a fair deal from that company. There is no doubt that if the ESB was privatised, it would seek to supply electricity to mass markets and more rural communities would be left on the hind tit.

I wish to comment on the closure of Bellacorick power station. People in the area are concerned about the loss of 100 jobs which will result from this. The Minister will have noted recently that a former Member of both the Seanad and the Lower House, Mr. Myles Staunton, was putting together a €100 million rescue package for Bellacorick which could lead to an alternative source of electricity being produced in the area. I hope the Department will give consideration to Mr. Staunton's proposals.

I compliment the Minister on the Bill. I hope it has a quick passage through the House.