Seanad debates

Wednesday, 5 October 2011

Communications, Energy and Natural Resources: Statements, Questions and Answers

 

4:00 pm

Photo of Trevor Ó ClochartaighTrevor Ó Clochartaigh (Sinn Fein)

Cuirim céad fáilte roimh an Aire. Is breá an rud dom a bheith ar ais sa Teach agus muid ag plé na ceisteanna fíor-thábhachtacha seo. An chloch is mó ar mo pháidrín inniu ná cúrsaí ola agus gáis agus an achrann nádúrtha sin atá eadrainn agus go mbeidh muide mar thír ag baint an leasa is tábhachtaí agus is fearr gur féidir linn as an gás agus an ola atá thiar ó chósta na hÉireann.

The Minister spoke quite generally on the gas and oil resources we have available to us. I am interested in hearing his opinion, as a former trade unionist, on the SIPTU document, Optimising Ireland's Oil and Gas Resources, which proposes quite radical changes in the licensing system so that the country will get a much better return on the oil and gas resources we have available to us. One of the main recommendations in that document is that no new licences would be issued for the industry until the Oireachtas review is completed, because the industry could have a massive impact on job creation here, on tax revenue and on helping us to get out of the situation we are in. The document looks at the imposition of royalties, alternative models for licensing and the potential for job creation. It also looks at some of the companies that have already been given licences which have made a discovery of oil or gas but have not brought them into production and urges that they be asked to either start production or relinquish their licences. The document also proposes a higher percentage of tax, in line with international standards.

The document is not a Sinn Féin document, but is one I imagine the Minister would take seriously because it comes from a trade union background. It shows that we are at the bottom of the league when it comes to a return from our gas and oil resources. This is important at a time when we need to maximise those returns. It is in line with the Labour Party's election manifesto, which stated: "Labour will also ensure that Ireland's royalty regime extends to the Corrib gas field as part of a wider review of the tax regime and conditions of oil and gas exploration". Is that Government policy or was it just the Labour Party policy? Did the Labour Party have to renege on this policy now that it is in Government? The document does not suggest that we are not in a position to have a State development company to maximise the return on these resources. It cites a number of different approaches and models that could be taken on board and I urge that this happens.

Security of supply is also one of the three major priorities but there is no security of supply in the current licensing regime and no guarantee that companies bringing these resources inland will sell to the Irish market. There is nothing in their contracts to compel companies to do so. We do not have security of supply and I ask that this be inserted into the contracts being developed.

Tax write-offs are a major issue. I have heard the Minister argue on a number of occasions that oil companies must make a major investment and that it is very difficult to get them to come here unless we offer a low tax regime. However, the real issue is that the companies get to write off all of the costs, as outlined in the report "Optimising Ireland's Oil and Gas Resources". Ireland gets very little back from the investment. We must examine models in other regimes.

I agree with Senator Kelly on the fracking issue and I call on the Minister to take on board suggestions not to allow fracking to go ahead until the review has been seen.

The policy of no disconnections by the ESB sounds good in the media but I am worried about how it will work in practice. It does not address the underlying issues that people are not in a position to pay their ESB bills. It is dependent on people entering into a pay plan or having a meter installed. There is no point in saying that a pensioner in Connemara is not disconnected because the power is coming to the meter if the person does not have the money to put into the meter. If the person has no money to put into the meter, there will be no electricity. That measure will not resolve the underlying issue of people not having money.

I agree with the calls regarding Teresa Treacy. It is scandalous that she is still in prison and that a large company is riding roughshod over our citizens. I urge the Minister to intervene in any way possible with other Government representatives to have the issue resolved. Her suggestion is in line with the Minister's policy of having power lines underground in other scenarios. A related matter is the ratification of the Aarhus convention. Ireland is the only country that has not ratified it and, if the convention had been ratified, the legal position of Teresa Treacy would have been strengthened and she could have taken a stronger case.

On a more parochial matter regarding the ESB, we are waiting for a 110 kW line to west Connemara. Perhaps the Minister has some information on when this will be rolled out. It is essential to the development of our area.

Sinn Féin does not agree with the sale of a stake in the ESB, which seems to be contrary to the policy in the election manifesto of the Labour Party, which stated that "it is important that our gas and electricity networks are kept in public ownership, so that access to this vital infrastructure is not jeopardised". Has the Labour Party policy changed on this matter? Sinn Féin does not see selling the State assets as the way to go in the difficult time of the current financial situation. On the contrary, it is akin to having a flock of golden geese laying eggs and killing one of them to eat it. Sinn Féin would much prefer that the €700 million that will be given to unguaranteed bondholders in the former Anglo Irish Bank is used to invest in the infrastructure of companies such as the ESB to undertake the kind of development mentioned by other Senators.

I echo the comments of Senator Kelly about the Sustainable Energy Authority of Ireland. I know people who, having done the attic insulation, had the same experience of being turned down in respect of cavity wall insulation. It is a policy that changed midstream and we would like clarification.

I would like to ask about the last mile scenario in the rural broadband scheme. When broadband was rolled out in many rural areas, we were told there would be access because the exchange was enabled. In reality, the lines along the final mile to people's houses were not upgraded by Eircom so people in those areas could not receive fixed-line broadband. What is the situation with that?

I welcome the comments of the Minister regarding the digital switchover and I hope support will be provided to those who cannot manage the switchover. I agree with the points made about the level of salaries at RTE. RTE makes the argument that it must pay the salaries because that is what the market demands. As someone who worked at TG4, I know that RTE poached much of the talent at TG4, such as Gráinne Seoige and Daithí Ó Sé. They were not paid €500,000 when they worked at TG4 and there is plenty talent around them. We should not use the argument that we must pay high salaries because these are the only people who can do the job. The review of the broadcasting sector should ensure that all broadcasters are fulfilling commitments to broadcasting in the Irish language, go bhfuil siad ag cur an méid cláracha atá siad in ainm a chur ar fáil trí Ghaeilge ar fáil.

Regarding postcodes, Ordú Logainmneacha should be taken into account in whatever system is used so that Irish language names of villages and towns are taken into consideration. Perhaps a GPS-based system would be better because it will pinpoint exactly the house or the place in question.

An Bord Pleanála made a good decision on wind farms in Connemara. There was sleight of hand when a wind farm was being forced through without the locals being informed about it. A local director of services overturned a decision by his planner on planning permission and, thankfully, An Bord Pleanála overturned that again because the proposal did not suit. Sinn Féin would like to see suitable planning for wind farms and more local involvement in the decisions. The Minister said he would like to see co-operative development of wind farms and I would like to see more local communities involved in the development of wind farms. Perhaps assistance can be provided to local communities to develop wind farms so that profit does not go into private hands but is returned to the community, helping to regenerate the community. Theastaigh uaim cúpla ceist a chur maidir le cúrsaí fógraíochta. Gabhaim buíochas leis an Aire as ucht a theacht isteach. Tá súil agam go labhróidh mé leis faoi chuid de na ceisteanna eile am éigin eile.

Comments

No comments

Log in or join to post a public comment.