Noel Treacy (Galway East, Fianna Fail)

I thank the Senators for their diverse and focused contributions on this important aspect of European affairs, particularly the analysis of the Council of Europe meeting. As I indicated in my opening statement, this European Council demonstrated again that the European Union can respond effectively to the needs and aspirations of our citizens. The Heads of State and Government have advanced the Lisbon Agenda for growth and jobs, adopted comprehensive conclusions on a new energy policy for Europe and respected fully the prerogatives of member states as they seek to achieve closer co-operation on the challenges facing us.

The Taoiseach noted that discussions on energy were very much a first step in what promises to be a long and complex process, a fact to which a number of Senators alluded. Given its importance for lreland, we will be participating actively in the EU debate and tabling our own contribution on the way forward. The Government will publish a national Green Paper on energy in the coming months.

At EU level, the future development of the energy policy for Europe will be taken forward through an annual strategic energy review which the Commission will present on an annual basis beginning next year. In addition, the spring European Council next year will aim to adopt a prioritised action plan which will support the achievement of the objectives of the energy policy. In the short term, the EU will pay particular attention to driving forward an action plan on energy efficiency, implementing the biomass action plan, developing an interconnection action plan and making the EU-Russia dialogue more effective. This is important for all of Europe, including Ireland.

The Commission has been asked to submit a priority interconnection plan by the end of 2006. Such a plan is very much in keeping with the importance of interconnection to our national energy supply. There is agreement in principle to the building of a second North-South interconnector and the technical aspects of this are being examined. The Government has agreed in principle to building an interconnector between Ireland and Britain. This would link us to the UK grid and ultimately to the European grid. The Commission on Energy Regulation has submitted its report to the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, who will make a recommendation to Government shortly.

In the ongoing discussions on a future energy policy for Europe, lreland has raised questions about how the Commission sees the major investment projects in networks and storage facilities being delivered and funded. We have offered strong support for proposals around renewable energy, energy efficiency and increased funding for research and development. On renewable energies, the European Council agreed to consider in the future some new targets on the share of renewable energies of the overall energy mix and a target on biofuels. These would also contribute to the fight against climate change while also reducing the EU's dependence on energy imports.

Issues such as energy diversification, interconnection, storage, security of supply and greater exploitation of indigenous resources are all of crucial importance to Ireland. Energy policy cuts across environment, climate change, transport, regional, research and development and external relations policies. The future development of our national policy approach will, therefore, be based on strong coherence at the national and EU level between energy and other key policies.

I repeat that there is no basis whatsoever for doubting the strong opposition of the Taoiseach and the Government to nuclear energy, although some of the personal contributions by Senators showed a more liberal attitude to consideration of that energy source. The Taoiseach made this clear at the European Council and subsequently. It is also the case that construction of a nuclear generating facility would require a change in primary legislation, the Electricity Regulation Act 1999, which the Oireachtas would have to approve. Section 18(6) of that Act states that "an order under this section shall not provide for the use of nuclear fission for the generation of electricity". The Government's position on nuclear energy should be clear to everyone.

We are currently considering carefully the Commission's revised text on the services directive. As I indicated, the Government is committed to the need for a balanced services directive which combines the benefits of a more liberalised market in services with respect for the rights and interests of workers. We envisage no race to the bottom.

As regards research and development, the Presidency conclusions record Ireland's target of 2.5% of GNP by 2013. This is realistic and achievable. Ireland has recorded significant growth in research and development expenditure by the public and private sectors in recent years. However, because of the high level of growth by the economy in overall terms, this large increase in expenditure has been reflected in only a modest statistical increase when expressed as a percentage of GNP.

It is entirely appropriate for lreland to express our investment in research and development as a percentage of GNP, rather than GDP, in view of the distorting effect of multinational companies here on our economic statistics. This provides a better basis for comparison with investment in other member states and the European Commission has been advised, and has not objected, to our use of GNP for this purpose. Our investment target and date were set out in the Government's national reform programme for implementing the Lisbon strategy which was placed before the Houses of the Oireachtas in October last year. On this matter, it will be noted that Science Foundation Ireland's centres for science, engineering and technology programme is highlighted by the European Commission as an exemplary national project, a fact to which a number of Senators have referred.

I sincerely thank all the Senators who contributed. It is important to have an opportunity to reflect on the various highest levels of discussions at European level where the Heads of Government and State sit down together and make decisions that will have a major impact on the medium and long-term future of the Union. As Members of Parliament it is important we have an opportunity in this House to discuss those, to ensure our citizens are fully aware of the decisions that have been taken and that we communicate them to the people in a positive manner on a consistent basis. I sincerely thank all the Senators in this respect and look forward to meeting them again soon.