Deirdre Clune (Fine Gael) | Oireachtas source

The Bill reflects a programme for Government decision to consider putting non-strategic assets up for sale. I fully agree with the separation of the network from the energy-supply sector. I congratulate the Government on negotiating with the EU-IMF troika to ensure that 50% of the proceeds of such sales would be retained for job-creation initiatives. Following the sale of the national lottery licence, €200 million is to be ring-fenced for the national children's hospital. On Tuesday the Minister, Deputy Howlin, announced a number of capital projects to be facilitated by a further €200 million from the sale of the national lottery licence. We have seen how funding from the sale of non-strategic assets can be used to facilitate job creation and specific capital projects.

Bord Gáis Éireann is the only semi-State company with its headquarters outside Dublin. Its move to Cork has been very successful. From talking to some who were involved at the time, I know there were objections and there was a no great desire to move outside the capital and establish a headquarters in Cork. However, Bord Gáis Éireann has always maintained a strong presence in the Cork area. It has never used its Cork base as an outreach office, and has worked with local communities and supported events across the city and county.

The Minister outlined the various Bord Gáis Éireann businesses, including its supply business, the power station at Whitegate, onshore wind assets and energy supply and distribution business in Northern Ireland. One third of households and many commercial premises, including schools, hospitals and industries, rely on gas for heating. We have a mix of coal, oil and gas-powered plants. For many people gas is preferable from a cost point of view. It also has lower carbon emissions - 40% to 50% less than coal or peat, and 25% less than diesel. From that point of view it is a very important fuel.

Gas infrastructure meets some of the best international standards, which is a tribute to the success of Bord Gáis Éireann. The interconnector linking Scotland to Ireland, the pipeline to the west, the Galway-Mayo pipeline, and the North-South pipeline all have the potential to build up a distribution network around those gas lines. Senator Kelly spoke about the potential to develop the gas network to other towns and cities. In 2011 the Western Development Commission produced a report indicating that extending the gas network to 11 towns in the north west could result in an annual saving of €20.6 million in fuel costs that region. There is potential to extend the low-pressure network beyond the main pipeline routes.

It is very important to bring the Corrib gas field on stream and the Shannon LNG plant is strategically important. We also need to consider storage facilities. We have only one facility off the south coast with a capacity of 3.5% of our needs. However, other countries in Europe have storage facilities with capacities of 20% of their needs. Does it make sense for a country at the end of a pipeline not to have additional storage capacity?

I may get a further opportunity to contribute on Committee Stage. The Bill is an important step forward in identifying what is strategically needed.