Jerry Buttimer (Fine Gael)

This Bill is long overdue; it is a scandal that we had to wait so long for it. Electricity generation has changed; it is now a complex market. However, it should not be; there should be transparency.

There are two groups - consumers and businesses. The best thing the Minister did was to introduce smart meters. I have one in my house and it allows the user to monitor the use of electricity at all times. Meters should be installed in every household. If we are serious about reducing carbon-based emissions, we must educate all citizens, not just industry and enterprises.

In the last two years the country has lost hundreds of millions of euros in revenue. I listened to Senator Walsh's remarks and disagree with his comments on the use of the money raised. From reading the explanatory memoranda, it goes to the Department of Finance which has the right to disperse it accordingly. It is wrong for the Senator to talk about inefficiencies in the public service and say he hopes the money will not be used for it when the Bill must be about the protection of consumers. As Deputy Coveney said in the Dáil, we have promoted the concept of windfall taxes for generators since June 2008. We support the principle in the Bill. We tabled amendments in the Dáil, not for political purposes but to enhance and strengthen the Bill. The Minister accepted some but not others.

We debated the issue of job creation earlier this week. Tackling competitiveness is critical to our future economic recovery. Senator Quinn posed a question about the imposition of the carbon levy in current circumstances. I hope the reduction in electricity costs for industry will occur because we must be serious about job creation; we must make reference to the market value of the carbon allowance and make generators pay.

Looking at the EU emissions trading scheme, Deputy Coveney remarked in the Dáil that the major challenge facing the Minister was to find a method to reduce electricity prices. That remains true. We must take a holistic approach. We have been saying the Government must claw back the unearned gains from the power generators through a special windfall tax which will be determined annually by a reference to the market value of the carbon allowance.

The energy pricing market is complex but it must be transparent and capable of being understood by all. The are implications for Ireland when this legislation is passed. While Fine Gael does not oppose it, I am not sure where the Labour Party stands on it. It might perhaps devise a policy as we speak. I should not say that, however. I will leave it to Senator Ó Brolcháin whose party is in government for the moment.

Issues such as whether electricity generators have a cushion in terms of unearned profits arise. The single electricity market committee which oversees the operation of the electricity market here stated in March that "action to recover the windfall gains from the full pass through of carbon allowances would, therefore, be a matter for Government". This is right. I would not like if the regulator were to determine to whom the gains would be passed. As stated by the single electricity market committee, the recovery of the windfall gains could deliver benefits for consumers, which is the most important point of all. This measure must result in benefit to the consumer.

I cannot recall the year the Kyoto Protocol was signed. Perhaps Senator Ó Brolcháin might tell me the year in which it was signed. Former US President, Mr. Bush, must accept blame in this matter. If every country had willingly signed up to and actively participated in that agreement, we would be in a better position. The Irish consumer who has paid directly in recent years must be given a break.

I am glad my colleague from west Cork, Senator McCarthy, is now present in the House. I was lamenting that there was no Labour Party Member here.