Maurice Cummins (Fine Gael)

I second the motion so ably proposed by my colleague, Senator Coffey. There is no question but that high energy prices cost jobs. Utility costs such as energy usually make up most of the non-labour related costs of businesses. When international companies come to Ireland or elsewhere seeking countries in which to establish bases, they examine closely how the economy's cost competitiveness compares with other countries. High Irish energy prices remain a top concern for businesses and enterprise agencies that are tasked with selling Ireland as an investment location.

The head of the IDA, Mr. Barry O'Leary, stated recently on "Morning Ireland" that a number of barriers to growth and winning more business had been discussed and that it is quite clear we need to be more competitive in areas such as energy. That statement is by a man who is trying to bring businesses to Ireland. He is stating clearly the cost of energy is inhibiting businesses from coming here. Surely we must listen to the man who is trying to sell Ireland and bring businesses here.

The latest EUROSTAT statistics on energy prices, which were outlined in part by Senator Coffey, show that Ireland has the sixth highest domestic electricity prices of 31 countries in Europe, behind only Luxembourg, Austria, Italy, Germany and Denmark. When tax is excluded, prices in Ireland are the third highest, behind only Luxembourg and Italy. With regard to my point on business costs and competitiveness, Ireland's electricity prices for businesses are the sixth highest among the 31 countries. These are facts, not just statistics, and we must listen to them, especially when preparing policy.

The public service obligation, PSO, levy is designed to support the policy objectives of security of energy supply and the use of indigenous fuels, such as peat, and renewable energy sources in electricity generation. Specifically, the proceeds of the levy are to be used to recoup additional costs incurred by energy suppliers in having to source a proportion of their electricity supplies from such generators. The PSO levy is entirely a decision of the Government. It will indiscriminately increase energy bills for all users. It is estimated that household bills will increase by approximately 5% and small businesses will end up paying more for their annual energy at a time when they are on their knees.

The Department of Social Protection announced that welfare payments, made available via the household benefits package, will be increased at a cost of €12.6 billion. In essence, one Department is increasing welfare payments to cover charges set by another Department. This is ludicrous. That public spending has increased as a result of the Government imposed levy exposes the dearth of sensible policy on the part of the Government. There is no vision, no joined-up thinking and no plan such that people can be confident in the policies advocated by the Government.

Many in this House never witnessed hardship, yet there are many people suffering hardship at present. They are unable to make mortgage repayments and to pay ESB and other utility bills. As Senator Coffey stated, when a person cannot pay his electricity or gas bill, he is certainly on his knees and in dire straits, yet we are talking about increasing bills.

Senator Coffey, who worked for the ESB for many years and who is well aware of the circumstances affecting the organisation, has outlined the current position on suppliers. It is disgraceful that people are cut off and then charged exorbitant fees in order be to be reconnected. The money advice and budgeting service, MABS, and the Society of St. Vincent de Paul have appealed to suppliers. I appeal to the Minister to make representations to suppliers to cut reconnection charges to a minimum. Such charges are another burden imposed on people. Being cut off is bad enough but having to pay a reconnection fee that is even greater than the sum owed in the first instance is crazy.

I join Senator Coffey in asking that the Minister postpone the introduction of the levy until there has been a full re-examination of the circumstances that obtain. I hope he will not give us any lectures on renewable energy. Let us speak about ordinary people who find it difficult to pay their ESB and gas bills at present and who will be asked to pay more when the PSO levy is introduced.