Nicky McFadden (Fine Gael)

I welcome the Minister to the House to debate the Second Stage of this Bill, the purpose and aims of which must be widely supported. On the enactment of this legislation, EirGrid will be able to construct and maintain an interconnector to transport electricity. The Bill's intent is a simple one. Two interconnectors have been proposed under the Bill — an east-west interconnector and a North-South one. The aim of these is to reduce our dependency on non-renewable sources and to generate more than 40% of our electricity requirements from alternative renewable resources by 2020. EirGrid has two proposals: an 80 km long 400 kV power line between Kingscourt, County Cavan and Turleenan, County Tyrone, and a 58 km long 400 kV power line between Woodland, County Meath and Kingscourt, County Cavan.

The proposed latest completion date of the EirGrid east-west interconnector is 2012. This will link the Irish transmission system to the British system. Under Ireland's energy policy and the European policy, this interconnector will secure Ireland's capacity to reduce our dependency upon other sources of energy as well as promoting the use of more indigenous renewable energy resources, which is most welcome. It is vital that we have in place a viable and sustainable infrastructure to cope with rapidly decreasing non-renewable resources. The Government now has an opportunity to be innovative and forward thinking as globally depleting energy supplies take effect.

The Government must act to ensure Ireland does not become economically isolated. This interconnector would link us geographically to Britain, which in turn would provide us with a connection to Europe. This could be vital to our sustainability in future years. Ireland will benefit greatly from the EirGrid east-west interconnector. Most importantly, it will give us a guarantee of direct supply. As recently as last week there was a threat to our electricity supply, but the interconnector will enhance our growth in renewable energy resources. It could promote greater competition, allowing Ireland access to the larger British market which would have a positive impact for consumers. However, the Government must assure the public that this interconnector is reliable, sustainable and provides competitive electricity supplies.

Currently, Ireland has limited indigenous reserves of fossil fuel and is largely dependent on supplies from Russia and the Middle East. The absence of an interconnector to Britain, however, leaves us at the back of the queue. More is needed immediately. We must be prepared to commit Ireland to a future that ensures our energy security. We must secure our supplies. The Minister must avail of every opportunity to improve our connectivity with the rest of the world and not just Britain. I welcome the fact that the Minister referred to this point in his speech.

These plans have been discussed for more than eight years, yet we are still debating the issue. Surely EirGrid could have these interconnectors finished before 2012. The private sector company building the interconnector between the Netherlands and Norway, which is almost 600 km long, can do it in three years.

The main purpose of this Bill is to give EirGrid the capabilities to undertake and manage projects such as the proposed east-west interconnector and the North-South interconnector. This Bill would also enable EirGrid to own its own assets. In his speech, the Minister referred to company's ability to take out or extend a loan to the value of €750 million. EirGrid itself proposes to take responsibility for running the lines for the east-west connector from Rush to Batterstown in County Meath.

As regards the Bill's overall provisions, the Minister referred to EirGrid being responsible for financing the project. However, I am concerned that consumers will ultimately have to pay the price. I understand that, through this Bill, the Minister is legally providing for EirGrid to borrow to finance the project. At this stage, however, it is unclear how he intends this infrastructure to be funded. Will it be partially funded by money borrowed and raised by EirGrid, topped up by public moneys, or will it be integrated into consumers' electricity bills, thus pushing costs even higher than they already are? I would welcome some clarification of these matters.

It is worth noting that in the past five years UK electricity costs have been consistently 8% to 15% cheaper than here. I would like the Minister to clarify that point also. Many Scandinavian countries have lengthy connections. For example, Norway has 4,000 MW of interconnection with its neighbours and these lines are mostly underwater. This contrasts with Ireland's 400 MW of connectivity, which is unacceptable and appalling. If we want to put Ireland at the heart of the green revolution, it is no use utilising green sources of renewable energy off the west coast if the resulting electricity is then brought to the east and north-east using non-green, outdated technology that puts people's lives at risk.

I am not convinced that EirGrid's performance on the North-South interconnector to date is in any way encouraging. We must carefully monitor and control EirGrid. In the past, EirGrid has shown a serious capacity to delay projects so I ask the Minister to be careful not to create another monster like the Health Service Executive or the National Roads Authority. Will the Minister take total control of this agency and all of its functions?

At this juncture I would like to speak about the ESB, which as we are all aware is in public ownership. As a past employee of the ESB, like my father before me, I regard it as one of the most efficient of our semi-State companies. It has turned around its fortunes in a time of serious competition. Since the ESB's inception more than 80 years ago, the company has been very efficient. We owe it a big debt. I take heart when I note that practically all the personnel in EirGrid are former ESB employees, which is a good omen for the future.

A group called the north-east pylon pressure campaign, NEPP, has been established to challenge and oppose any decision to plant high-power electricity pylons. The group's concerns are serious and ought to be heeded. The route that EirGrid has announced as a possibility would run from the existing substation at Woodland near Batterstown to a new substation near Kingscourt, which would join the Cavan-Tyrone power line. There are two other proposed lines which have also been opposed by local residents who may be affected. These people are voicing serious and genuine concerns which EirGrid must listen to. The primary concern is about health risks which the pylons and power supplies may pose. People are worried about their safety and that of their children while farmers are also worried about the adverse effects on livestock and lands.

We have come a long way since last October when EirGrid first announced this project. The company rejected the option of putting cables underground because, first, it was not technically feasible and, second, it would cost ten or 20 times more than putting them overground. However, the concerns that the north-east pylon pressure group has raised cannot and should not be ignored. As a result of its research and campaigning, the proposal to put the power lines overground has been discredited. It is now accepted that it is possible to carry the electricity over a long distance underground. This is being done in many countries around the world, so there is no plausible reason to prevent Ireland from doing so. The issue of whether that electricity is alternating or direct current is an engineering red herring introduced by EirGrid to muddy the waters in this debate.

The north-east pylon pressure group comprises decent, honest and concerned people. They are representative of the people of the north-east on this issue, yet I am sorry to say that they have been treated disgracefully. Their letters have not been answered nor have they received any response to requests for a meeting. I ask the Minister to address this issue and meet them.

Legislation has been proposed by the EU which would force companies such as EirGrid to put any such power lines underground. While a date has yet to be set for legislation of this sort to come into effect, the Government could and should take the initiative by putting the power supplies underground. In the Lower House, Fine Gael has put pressure on the Government to seek advice from independent consultants on the viability of placing the power lines underground. If the Government had done this from the outset, the concerns of the people would have been addressed and these interconnectors could be built by now. The delay is unacceptable and the approach that the Department has taken heretofore is disappointing.

The consultants, Ecofys, are currently carrying out their investigation of the merits of underground versus overground and I look forward to analysing their findings, which will be published in July. There are serious questions over their capability and their degree of independence from the Department. I await their findings with an open mind. The proof will be in the quality or otherwise of their report.

I will finish because I have run out of time. Overall, I support the Bill but I would ask the Minister to keep a close monitoring eye on EirGrid.