Jim Walsh (Fianna Fail)

I would like the revenues that will accrue from this measure to be ring-fenced and used specifically in the energy sector, particularly in promoting the green energy sector and encouraging greater efficiencies within it. I would not like the money to which I refer to become part of overall Exchequer finances. It should be specifically used for the purpose for which it was envisaged, namely, encouraging cleaner electricity production and reducing carbon emissions to a significant degree. However, I accept that the State will probably be obliged to purchase carbon credits and that this will give rise to a cost for the Exchequer.

The Bill contains a provision in respect of certain exceptions that can be made. I do not know the extent to which this will fit with the regulations or the criteria laid down in respect of these exceptions. I have some sympathy for companies such as Endesa which has located its operations in my constituency and made a significant investment in acquiring energy production assets in this country. It is has purchased plants at Tarbert, County Kerry and Great Island in south-west Wexford. The carbon levy will be applied to it in the same way it applies to the ESB. That is despite the fact that it has purchased the facilities to which I refer, from the ESB and at market rates. I do not know if Endesa and companies like it have made provision for this additional cost. I am not seeking favour for the Endesa project. However, I am asking that Endesa and companies like it which have made a significant investment in order to enter the market not be placed at a competitive disadvantage vis-À-vis those companies which have invested in developing their production facilities in the past by being obliged to service the cost of the purchases they have made, while also meeting the cost of the carbon levy. Serious consideration must be given to the position of companies such as that to which I refer in order to ensure their position will be safeguarded and that there will be a genuinely competitive energy market in this country.

My final point relates to the single electricity market for the island which evolved in recent years and which has been welcomed on both sides of the Border. This is a good development because it has given rise to the level of consumption necessary to sustain competition. I hope the levy will not distort the market. I am unsure about the position in Northern Ireland on the levy. I may be incorrect, but I understand it will apply in the Republic but not in Northern Ireland. If that is the case and if, as a result, there will be a differential or distortion in this regard, will the Minister clarify what will be done to ameliorate its effects? Have initiatives been taken to ensure what is a good measure will also be applied to the electricity generation companies in Northern Ireland?

I welcome the thrust of the Bill which is a good measure. I hope we will have the opportunity to tease out some of the matters that have arisen during this debate on Committee Stage.