Joe O'Reilly (Fine Gael)

Ar dtús báire, ba mhaith liom an tAire Stáit a fháiltiú go dtí an Teach. Gabhaim buíochas leis as ucht an léiriú ag thug sé dúinn ar an t-ábhar tábhachtach seo. The objective today is to amend section 23 of the Gas Act 1976 and to increase the statutory borrowing limit of Bord Gáis Éireann from €1.7 billion to €3 billion. This would allow Bord Gáis Éireann to develop and work on what is a very fine corporate plan up to 2014. In the interests of the country, my party will support the legislation, as we did in the Dáil, on the premise that flexibility should be allowed Bord Gáis Éireann in this area.

It is worthy of note that Bord Gáis Éireann has 600,000 customers nationally at present. It has made very good use of moneys and resources to date and it is a very successful company. An interesting by-product of the current credit squeeze is its assistance to players such as Bord Gáis Éireann, which can afford to purchase major wind farms, as it has done recently.

The strengthening of the hand of Bord Gáis Éireann in this regard is a by-product of our current position. I am impressed by the legislation's mandatory provision to the effect that Bord Gáis Éireann would not be given carte blanche and the Minister still will have control on expenditure. I refer to both the Ministers for Communications, Energy and Natural Resources and Finance in this regard. Such a provision is both worthy and necessary and it is worth making the point on Second Stage that in the past 11 years, a culture has existed that featured excessive lack of control and a lack of minding the pennies. In the current climate and for the next year, everyone at a domestic level will be obliged to manage money in a different fashion. Similarly, the country will be obliged to so do and a different culture must pervade. Moreover, one must hope that such a culture will extend itself for longer than in the past and that it will endure for a long time in the interests of the country.

I wish to make a point to the Minister of State that I also made on the Order of Business in this House some weeks ago and which then received general acceptance as being an important issue. Last summer, Bord Gáis Éireann was awarded a price increase of 20% that was predicated on the fact that at the time, crude oil cost €145 per barrel. At present, however, oil costs less than €50 per barrel or somewhat less. While the price fluctuates, it now is approximately one third of what it then was. The Minister of State should take seriously the suggestion I am about to make. It should have happened long ago and had such a measure been taken in advance of last night's negotiations with the social partners, we may have had a different outcome. At a minimum, there should be a 10% reduction in the current prices of gas and electricity. The regulator stated in respect of the ESB that it had a six-month supply of oil in backlog at an expensive price and for that reason, an instant decrease in its prices could not take place. If it is the case that the ESB had a six-month backlog of the expensive oil, presumably it also had a backlog in supply of cheaper oil at the outset of the crisis. Consequently, there is no justification for failing to reduce energy costs. Great energy poverty exists among our social welfare recipients and high energy costs constitute a significant barrier to successful industry. One of the major employers in my own locality, Wellman International of Mullagh, County Cavan, recently cited its energy costs as being its greatest disincentive. Moreover, many companies that have closed down have cited the significance of high energy costs. My point is that gas prices should be reduced immediately. Bord Gáis Éireann is a commercial success and while I do not wish such success to stop, consumers should not fail to benefit from both that success and the pain they may have accepted in the past. I make this point to the Minister of State not in a flippant or time-filling way but in a serious manner. He should respond to this point and should take this to be a serious proposition.

The Leader of the House, Senator Cassidy, assured me on the Order of Business a few weeks ago that he intended to bring this matter to higher echelons and similarly, I ask the Minister of State to act on it. At a minimum, there should be a decrease of 10% to 20% in gas prices. There should be a reduction in both ESB and gas prices of a dramatic nature and were such measures presented to the social partners, they might look on other propositions in a different fashion. This matter is both urgent and serious and it is a shame it has not happened to date. The public is becoming angry in this regard and it should not be the case that high energy prices are dislocating jobs. This matter must be tackled head-on.

I will mention in passing a point that is not relevant to today's debate. The issue of price control must be grappled with to a much greater extent. It also constitutes a huge element in the cross-Border trade and while I recognise the VAT dimension, price control must be central. Why can superstores in one part of an island sell at radically different prices to superstores in another part? This issue must be investigated.

The proposed new borrowing limits, which Fine Gael supports, will allow Bord Gáis Éireann to increase its involvement in the renewable energy area. This is an excellent development in the context of Ireland's Kyoto Protocol obligations and its future in respect of energy supplies, sustainability, security etc. The Minister of State should encourage Bord Gáis Éireann to opt to purchase and develop wind farms. It is important that Bord Gáis Éireann should become an aggressive competitor to the ESB. This will be necessary for consumer pricing, the quality of supply etc. Obviously, Bord Gáis Éireann requires the proposed capital, flexibility and upper borrowing limits in order that it can compete against the ESB. It is important to ensure that Bord Gáis Éireann's gas supply becomes accessible to as many local communities as possible. The Minister of State referred to this and I agree. This policy should be continued and there should be constant monitoring to ensure continual significant investment in extending pipelines and access. While I note 18 counties have complete coverage and 600,000 customers now are supplied, it is important to acknowledge that some areas of the country are without a gas supply.

Energy security is a highly important issue in that at present, Ireland has available to it six days' supply of gas. Members should recall the dispute between Russia and Ukraine and the former's recent treatment of the latter. The Minister of State correctly identified that this dispute did not have an impact in an Irish context and it is helpful to the House that he did so. However, at the same time, this should ring alarm bells and is of concern as it brings into focus the question of security of supply. Consequently, it is important that Bord Gáis Éireann proposes to invest capital expenditure in the creation of greater storage facilities for gas and wind energy, as well as for the development of renewables. I understand its corporate plan proposed expenditure on renewables and storage facilities of €15 million, €80 million and €194 million last year, in 2009 and 2010, respectively. This development is crucial and the Minister of State should continually impress on Bord Gáis Éireann that it should continue such capital expenditure on those priorities, as outlined in its corporate plan.

It is important to continue to exploit Ireland's offshore gas natural resources. However, it should be brought ashore in a much more sensitive fashion and in a much more co-operative and interactive manner with local communities. Although ultimately decisions must be made, the manner in which the bringing onshore of gas from the Corrib gas field has evolved has not been satisfactory and we should try to correct this in future developments. However, it is critical to bring onshore offshore gas in a manner which is acceptable to local populations.

I believe it will be extraordinarily important to examine Ireland's transportation sector to remove its over-reliance on oil, from the perspectives of emissions, the ultimate cost of Kyoto Protocol fines and general security and sustainability. We should consider sources of energy arising from renewables and other sources and the commercial availability and widespread use of electrically-powered cars. All Members will wish to acknowledge — it would be wrong to do otherwise — the huge contribution made by my Dáil colleague, Deputy Coveney, to this debate on electric cars and their development. At present, he is preparing a paper on the subject for the Oireachtas Joint Committee on Communications, Energy and Natural Resources. People should make use of electric cars and gas-powered cars and there should be a diversification of the transport sector, as well as a removal of our dependence on oil.

We should consider broadly renewable technologies and wave energy. While there has been recent investment in wave energy technology and its development, that must be ongoing. I certainly support the amendment and believe it is necessary to give an important company with a good track record, such as Bord Gáis Éireann, the flexibility and room to expand. I believe it must expand much further into renewables. While the company is moving in that direction, it must do so to a greater extent. It must establish more storage facilities and compete strongly against the ESB in supplying electricity. It must also bring offshore gas fields onshore.

The objectives are important and, by and large, are set out in the corporate plan of Bord Gáis Éireann. It is important for the House to have a democratic input and to monitor the development of the commercial companies in question. For a while, we let the power of the Houses of the Oireachtas slip to a detrimental degree. Current events might make us assert the role of the Oireachtas more and involve it more. We should be proactive in promoting and encouraging renewables and sustainability. The country has a significant opportunity in that regard and, from a patriotic perspective, I support the legislation.

There should be good competition with the ESB in terms of consumer prices. I await the Minister of State's reply on energy costs with great interest. Instant and radical reductions in energy prices are necessary. If they are not made, we could hardly tell ordinary, hard-pressed people about wage restraints and other sacrifices. It would be appalling were we not to take this golden opportunity to provide them with cheaper energy. A statement from the Minister of State would be welcome.