Feargal Quinn (Independent)

I welcome the Minister of State, Deputy Treacy, and thank him for expressing in his speech his interest in all the matters which were covered at the recent meeting of the European Council.

I am in danger of leading people to believe that I have a thing going for the US Secretary of Labor, Ms Elaine Chao, because I have mentioned her twice in recent weeks. When I met her a couple of weeks ago, I was very impressed to hear her saying that as a member of the US Cabinet, it was her duty, task and objective to establish an environment in which private enterprises can create jobs. I agree entirely with Ms Chao's belief, which is particularly interesting in light of the speech that has just been made by Senator Ormonde and in the context of the Lisbon Agenda, that governments are not responsible for creating jobs but for making sure that private enterprises can do so. There is a danger that Europe does not always recognise those roles and, as a consequence, job creation has not always happened. In that context, the outcome of the recent meeting of the European Council, as reported to the House by the Minister of State, is to be welcomed.

I believe that jobs can be created in the competitive marketplace that currently exists, in which other countries are trying to create similar sorts of jobs. If that is to happen, we have to make Ireland more attractive to the relevant companies. As Senator Ormonde has said, small and medium-sized enterprises will create such jobs. I am not sure that I accept Senator Ormonde's assertion that one can open a new company in Ireland in three days. When I spoke recently to a man who employs people throughout the world, he told me there is more red tape involved in starting a company in Ireland than he thought there would be. The authorities in Britain have identified the reduction of red tape as one of their most important tasks.

I understand that the European Union's energy policy was the central issue to be addressed at last month's meeting of the European Council. I have not seen anything in the statements which emerged from the council that equals, in immediacy or urgency, the report that was published by Forfás yesterday. According to the report, A Baseline Assessment of Ireland's Oil Dependence — Key Policy Considerations:

We in Ireland are more dependent on imported oil for our [transport and] energy requirements than almost every other European country and it will take up to 10 years to significantly reduce this dependence. Therefore, it is essential that we now begin to prepare for such a challenge.

The Minister of State mentioned that the question of EU energy policy featured prominently in the debate at the Council meeting. This issue is of great importance in Ireland, not only because we are so dependent on oil but also because it will become more risky to depend on oil as time goes by, given the uncertainty about the continued supply of oil. The report mentions that there is "growing evidence to suggest that the era of a plentiful supply of conventional oil is approaching an end". It was interesting to hear a man from the United States, who has written extensively about this matter, being interviewed on this morning's "Today with Pat Kenny". The Forfás report states:

Various experts ..... have developed projections for when peak oil will occur. While there is a wide variation of estimates about the likely timing, most expert commentators believe that 10-15 years from now, conventional oil supply will no longer be capable of satisfying world demand at current prices.

That is probably the most benign scenario that is available to us. Many other scenarios, which are much scarier, are doing the rounds. This is not just an Irish problem — it is found throughout the world — but Ireland is particularly vulnerable to an oil shock, unfortunately. I remember how ill-prepared the western world was for the oil shock of 1973. I cannot say whether a future shock will be caused by high prices or oil shortages, although an oil shortage may lead to high prices. The report states:

Taking into account the Irish economy's relative dependence on imported oil and the relative share of oil in total Irish energy consumption, Ireland is among the most sensitive to rising oil prices and therefore among the most vulnerable to a peak oil scenario.

The vulnerability of Ireland's position is summed up by two key facts. I did not realise I would have an opportunity to speak about this matter today. The Forfás report states:

Ireland consumed nine million tonnes of oil in 2004, an amount that has doubled since 1990. In 2002, Ireland ranked 3rd highest among the EU-25 countries in terms of oil consumed per capita. Electricity generation and transportation are the two main factors for Ireland's high oil dependence. Ireland has relied considerably more on oil for electricity generation than most other EU countries and, as of 2002, had the 6th most oil dependent electricity generation system of the EU-25 countries. The amount of oil used for transportation in Ireland tripled between 1972 and 2002, leaving Ireland consuming at least 50 per cent more per capita than the average of the EU-25 by the end of the period.

I agree with the statement in the report that Ireland urgently needs "a national strategy" to prepare for the challenges which will arise in this regard. I would like to add my voice to that of Forfás in calling for the development of such a strategy.

The Minister of State has informed the House that the European Council has recognised the importance of energy. We need to identify how urgent a problem it is for Ireland. Any strategy that is developed will have to focus on two key elements, the first of which is the much greater use of renewable sources of energy for electricity generation. Nature has blessed Ireland with ample wind and wave reserves, both of which we seem largely determined to ignore, for some reason. Ireland could become a world leader in the generation of electricity from wind and wave energy, just as it was once a world leader in the generation of electricity from turf and peat. It seems to me that it is utter madness that we are putting ourselves in hock to an expensive and increasingly scarce resource like oil when a cheaper resource is going to waste in the air around us and in the seas around our shores. On a clear day, I can see the seven huge windmills off the coast of County Wicklow from where I live in Howth. I know we have made similar efforts in other parts of the country, but we have a long way to go.

The second key element of any energy strategy should be the development of fuels other than petrol to run our vehicles. As an agricultural country with an agricultural tradition, nature is working in our favour in this respect. We now have a largely unemployed agricultural community, for one reason or another. As Senator Dardis has mentioned on many occasions, the technology exists to fuel cars from crops grown on an agricultural basis. One such crop is the same sugar beet that we have been wringing our hands about to such a great extent lately. I have spoken previously about the need for us to grow our own petrol. There is no reason in the world why we should not do so as long as we develop the technology, give the commitment and show the determination that is needed.

It seems clear to me from the deliberations of the European Council that the EU will not solve this problem for us. It is up to us to come up with the right conclusions and to take the actions which are appropriate for the future of our country. Of the many economic trends which face us in the coming decades, this is definitely one we can do something about with our own efforts. It would be tragic if we were to fail to do so, through a lack of vision or a lack of political will.

I met a Japanese man a couple of years ago and got to know him quite well. I asked him how he had been so successful when so many others had not. He said: "Whether you believe you can, or whether you believe you cannot, you are right." He said if he went into a tennis game and believed he did not have a chance against his opponent, he was right and did not have a chance. However, if he believed he could win, then he was right as well.