Michael Finucane (Fine Gael)

Fine Gael will support the passage of the Bill. The Minister has stated he is not in favour of the privatisation or dismantling of the ESB. Our experiences with Eircom were unfortunate, a matter to which we referred when discussing ComReg. Harsh words were spoken about the difficulties consumers have with Eircom with regard to connection and repair. It is a classic example of how privatisation does not work. When the State owned the telecommunications structure there was significant capital investment. Private companies that move in aim to placate their shareholders by making a sizeable profit and often in pursuit of that do not install the necessary infrastructure because that involves an associated cost. This is a small market for electricity and that is why we support this legislation.

There is growing concern at the increased cost of electricity. Any progress, whether through the proposed single electricity market, or the interconnector facilities about which we often speak, will be a success if it leads to a reduction in electricity prices. While the domestic consumer has no alternative because there is no choice, the industrial consumer has some choice of electricity provider. Domestic consumers, however, voice concern to us politicians about the escalating cost of electricity. Anybody in this House could see a dramatic difference in his or her electricity bills between 2005 and 2007. It is sad that the Minister for Communications, Marine and Natural Resources takes a large dividend from the ESB, possibly between €70 million and €80 million a year. Is it not possible to reduce the electricity bills instead of taking a dividend?

Senator Kenneally and I sit on the Oireachtas Joint Committee on Communications, Marine and Natural Resources which has met significant industrial players who have voiced concern at the escalating cost of electricity for their companies. I will not name them but most are well-known large companies which are major users of electricity. They are concerned about their long-term viability and their competitiveness because of the escalating cost of electricity and other charges. We should not take for granted industries which have been here for some time. They make the point that in the past they had the possibility of negotiating the best possible price based on their use but they cannot do that now unless they go to competitors in the marketplace.

I acknowledge the importance of the unique North-South co-operation proposed in this Bill that will benefit both parts of the island. I accept that the all-island market will be of benefit and that economies of scale, of which both sides can avail, should ensue. This is the first positive news about energy we have heard in a long time. The Minister has overseen a shocking drift in energy policy. I recognise that a paper was produced recently which was expensive because the consultants received more than €1 million and we waited for some time to see its contents and now await a further paper on energy.

There has been far too little movement on interconnection, renewables, import substitution and energy conservation. With the change of Government, which I hope will happen, there will be a change in mind-set. The Fine Gael-Labour Government, which I hope will be in place before the summer, will change that.

The Department of Communications, Marine and Natural Resources and the Commissioner for Energy Regulation have made noises in recent weeks to suggest this issue is being examined, despite the circumstances mentioned having existed for some months. I hope they will act in unison to the benefit of the consumer. Benefits will also accrue from the availability of more interconnectors. These will be North-South as well as east-west. As my colleague, Deputy Durkan, stated in the Dáil this will be of great benefit to the operation of electricity and gas markets but it should be recognised that the United Kingdom already has access to the nuclear sector. The traditional methods are fine but we should not use this new situation as a means to slow the development of alternative energy sources.

In terms of the economic independence of the grid we must be mindful that easy options in the North-South market could slow development of the alternative energy sector. We must be forceful about this because people tend to take easy options when the going gets rough. The easy option would be to draw on the cheaper electricity generated by nuclear energy in the United Kingdom and Europe. This would be good for the country but we must ensure we proceed to develop the alternative energy sector.

There are many forms of alternative energy and I am aware environmental issues arise whenever any type of energy is generated. Some say, correctly, that wave generated electricity will affect the development of shores and sandbars. We can develop significant transport to reduce emissions as required and as mentioned in discussions on the previous Bill before the House. Emissions will never be removed entirely but we can improve the situation dramatically and with scientific progress it is hoped ways can be found to reduce the environmental impact of energy usage generally.

I very much welcome the developments at Moneypoint because I grew up in Foynes, on the Shannon estuary, and have long been concerned about the sulphur dioxide spewing into the atmosphere from Moneypoint. The confluence of the winds drives this upwards and along the estuary around the Foynes area. Research shows that approximately 50% of the entire sulphur dioxide emissions in this country are in the Shannon estuary area. I am seriously concerned about those emissions. The changes in Moneypoint to improve this are better late than never and I welcome them. The community has tolerated what has been happening for a long time, which was most unfair.

Other forms of alternative energy are readily available and can and should be developed in this country. If we are to make this electricity market work we must examine the alternatives and develop them to the best of our ability without taking the easy option to escape reality and make excuses when things do not happen. Enlarging the energy market and delivering economies of scale do not offer complete solutions because both parts of the island will need to develop the energy sector significantly in response to population and economic growth.

Economies of scale must be borne in mind. If Ireland had the same population density as the Netherlands, its population would be approximately 48 million and its energy requirements would be massive. It is good that the electricity grid will be jointly operated by the Northern and Southern authorities. We should sing from the same hymn sheet and ensure prices are not arbitrarily increased in either jurisdiction. Prices should increase or decrease as the market demands, having due regard to the needs of industrial and domestic consumers.

Fine Gael has made proposals in its Energy for the Future document, which I again call on the Government to adopt. They include the removal of all excise duty on bio-fuels produced from renewable energy crops; promotion of combined heat and power facilities, especially in regions which have poor energy infrastructure such as many parts of the west and north west; grants of between €500 and €3,500 to encourage householders to convert to renewable energy for home heating; reform of the VRT system, through the establishment of energy efficient labelling for motor vehicles, with lower and higher rates of VRT for fuel efficient and inefficient vehicles, respectively; creating a market for bio-fuels by legislating that all motor fuels must include a blend of fuel from renewable sources such that all petrol sold would include a 5% bioethanol mix and all diesels would contain a 2% biodiesel mix; requiring all public transport and public service vehicles to convert, where practical and feasible, to forms of bio-fuel; establishing a centre of excellence for alternative energy charged with ensuring that Ireland develops a world class alternative energy sector.

Regardless of the continued instability in oil prices, the Government must take on board Fine Gael's energy policy and incorporate it in the forthcoming national plan. It would thereby put in place energy conservation measures such as vehicle labelling; development of biofuels; home heat conservation through insulation; use of alternatives; and a major plan to develop the alternative energy industry and the necessary supports to guarantee security of supply. Such a move would not only conserve and replace energy and develop the energy sector but would also draw public attention to the necessity to take such steps, involving both the industrial and domestic consumers who rely heavily on reliable energy sources.

An increase in British reliance on nuclear power will have nothing but harmful effects on Ireland. While the British Government is right to analyse its energy policy, nuclear power is not the way forward. Putting in place a new generation of nuclear power stations will inevitably lead to a rise in nuclear waste and much of this will be reprocessed at Sellafield. Those who operate Sellafield have already received warnings from the EU, covered up leaks and falsified documents. As a result, the facility must be closed as soon as possible. The increased risk to the Irish people from a rise in the amount of nuclear waste reprocessed 100 miles off the Irish coast at this appalling facility is unacceptable.

A new generation of nuclear power stations would give rise to a new generation of prime terrorist targets. There are nuclear stations even closer to Ireland than Sellafield. I refer, for example, to Wylfa in Anglesey, which will almost certainly be extended under Prime Minister Blair's expansion plans. I am concerned that, like Wylfa, many of the new stations may be situated just off the Irish coast along the UK's west coast. The Government and politicians on all sides must intervene to make it clear that an increase in the number of UK nuclear stations will be extremely hazardous to Ireland. Renewable sources, particularly the UK's wind, wave and tidal energy resources, should be utilised to meet its energy needs instead of increasing reliance on the nuclear option. If that does not happen, there is still the possibility of taking legal action in respect of the new generation of nuclear stations.