Pat Rabbitte (Dublin South West, Labour) | Oireachtas source

Ireland is fortunate to have very rich wind resources. We can now exploit those renewable resources to generate electricity, reduce our import bills for gas and oil and contribute to decarbonising our energy systems. Thanks to technology, we now have the technical capacity to create a new traded sector in green energy. Last year I signed a memorandum of understanding with my UK counterpart, Ed Davey, and since then our two Departments have been working towards an intergovernmental agreement, as required by the EU renewables directive, to facilitate trade in green energy between Ireland and Britain.

The contemplated midlands wind export project has been greatly misrepresented, often wilfully and sometimes dishonestly. When the plan to build out and modernise the grid was settled in 2006, the midlands export project was not even a beam in the eye of its originators. It is a private sector project that can only proceed as permitted by an intergovernmental agreement. Otherwise, the British side cannot count the imported power as coming from renewable sources and include it in meeting its own renewables targets. Nor can the project proceed except in compliance with a national policy and development framework, after a strategic environmental assessment that identifies the areas not suitable for wind farms.

We have done a cost benefit analysis, which shows significant economic benefit for both countries. On our side, we estimate approximately 6,000 job years at construction stage, revenue streams to local authorities and local communities and, most importantly, an annual dividend from trading to the Irish Exchequer. In addition, from discussion we have had, Ireland would be in a strong position to develop a supply sector for the industry. Furthermore, the midlands export project would offer new business opportunities to Bord na Móna, because it is difficult to see the development of any such project without taking into account the tens of thousands of acres of cutaway bog in the ownership of that company.

All of this must be settled within a very tight framework, both because of European Union requirements and because the private sector developers must, before they invest, know that they will benefit from the UK support systems. However, key policy and regulatory design decisions remain to be taken by the UK Government, which means that we are still a considerable distance from settling on the specifics of what the Irish Government and the renewable generators believe must be the basic components of any intergovernmental agreement. I repeat what I said in this House on 20 February 2014, namely, that without us seeing a considerable dividend in terms of revenue and employment for Ireland's benefit, there will be no such agreement.

Against that standard and following my meeting last week with Secretary of State for Climate Change and Energy, Ed Davey, I now find it difficult to see how, within the timeframe, it is possible to deliver the project as envisaged. I take this opportunity to repeat what I said on 20 February, namely, that whether or not the midlands export project goes ahead, this country will still need a grid that is fit for purpose. The plans to develop the grid do not have, and never did have, anything to do with the midlands export project. The midlands export project remains a novel one which, if realised, will bring jobs and wealth to Ireland. It does not appear that it can be realised at this time.