Seanad debates

Wednesday, 26 October 2011

Access to Central Treasury Funds (Commission for Energy Regulation) Bill 2011: Second Stage (Resumed)

 

11:00 am

Photo of Mark DalyMark Daly (Fianna Fail)

I welcome the Minister for Communications, Energy and Natural Resources, Deputy Pat Rabbitte, and wish him luck in finding oil and gas.

While Fianna Fáil does not oppose the Bill in principle, I have several questions about the legislative measures proposed. The anticipated implementation costs of the programme are approximately €5 million. The levy on the industry will not be imposed until the regulatory structures are in place. After that one expects it to be paid back within a year or two through the imposition of the levy.

I see the dreaded word "consultant" written in the Minister's speech in terms of staffing. I understand one cannot have all of the expertise on a staff but I am fearful about the cost of said consultants. Obviously, this has been budgeted into the loan being sought and I presume it will go through the normal e-tender process. Are we certain the figure of €5 million is accurate? It seems a very nice round figure. I presume we will try to not borrow as much as this from the NTMA if we can get away with it.

We initiated this when we were on the other side of the House and it is down to the Corrib gas pipeline. I assume this is why we are putting regulations in place with regard to overall safety. The Minister's speech mentioned the need to have less regulation, but this is regulation. The fear is that ultimately the cost will be passed on to the consumer and the levy will end up being paid by people buying petrol at the pumps, perhaps specifically in Ireland. We spoke about whether similar structures are being put in place in the North of Ireland. I ask the Minister to answer these questions.

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