The use of safe electricity is a major issue in public safety. Between 1988 and 1999, 76 people were killed in Ireland as a result of accidents attributed to electricity. In 1998, nearly 5% of all fires were attributed to electrical causes – over 1,261 fires in Irish homes and businesses. Fires attributed to electrical causes were responsible for nearly 18% of deaths caused fires that year. Although not all those fires and fatalities can be solely attributed to the standard of work that contractors carry out, it is nonetheless alarming that the incidence of accidents is so high. There is no doubt that better regulation of the work of electrical contractors would have a positive impact and reduce the risk of death, damage or injury.

The Government approach to the issue has been to pass the buck, shifting the regulation of electrical contractors from one Department to another – the Tánaiste and Minister for Enterprise, Trade and Employment, the Minister for Public Enterprise and the Minister of State at the Department of Enterprise, Trade and Employment have all in the past absolved themselves of responsibility for the issue. The Health and Safety Authority has also claimed that it has no responsibility for the regulation of electrical contractors.

The major impetus for change in the area has come from the Interdepartmental Review Group on Public Safety, whose report was published in July 2000. In the foreword, the group's chairman stressed the urgent need to address concerns about the regulation of electrical contractors. There is no doubt that, since the establishment of RECI and ECSSA, there has been an improvement in standards of safety and competence in the electrical contracting sector.

The fact that electricity is such a potentially hazardous and widely used source of energy makes it vitally important to ensure that members of the public are not put at risk through everyday use. Substandard installations in homes have led to fires and electrocutions and resulted in substantial loss of life in recent years. There is widespread acceptance that the scheme established by the formation of RECI, whose members I welcome to the Gallery, has contributed positively to improving standards and protecting the public.

There have been some shortcomings with the current system, and RECI and others have been endeavouring to raise those issues in recent years. In particular, there are concerns that the current system of regulation and supervision is voluntary and does not place enough of an onus on contractors or electricians to maintain high standards of public safety, adequate insurance and proper training. There is also a difficulty in enforcing the safety standards when electrical contractors or electricians registered with one regulatory body leave it and go to another such body before a disciplinary process against them has been concluded. That undermines the very essence of a regulatory regime for the electrical contracting sector. The Bill addresses that issue.

There are also difficulties with the inspection of contractors' work and situations where the owners of premises are not prepared to allow the regulatory organisations to carry out inspections. The Bill also addresses that. There is at present a ludicrous situation with different standards of safety applied for people in the home and in the workplace. The Bill addresses that issue too. Domestic customers currently have no statutory or regulatory protection against shoddy work, while those in the workplace have some protection from the Health and Safety Authority, as the Minister of State will know. There is therefore a need to equalise and regularise the regime.

Some misgivings have also been expressed about consistency in the operation of the regulatory organisations. As I said, in July 2000, the Interdepartmental Review Group on Public Safety published a report dealing with all aspects of its remit. In the foreword, the chairman, Professor Danny O'Hare, highlighted the fact that issues affecting the regulation of the electrical contracting sector raised serious questions about public safety that needed to be urgently addressed. The Department of Public Enterprise led an initiative to involve the Commission for Electricity Regulation in dealing with issues of public safety affecting the electrical contracting sector. That process has not yet reached a conclusion, but the Commissioner for Electricity Regulation has held discussions with interested parties about issues of concern.

There has been absolutely no indication from the Government as to when measures will be taken to address the shortcomings and concerns identified regarding public safety and the electrical contracting sector. There has been some suggestion that the matter may be addressed in the context of the forthcoming legislation to reform the Electricity Supply Board. A timescale of several years has been suggested by sources close to the Department of Communications, Marine and Natural Resources.

To address this issue, a Private Members' Bill has been prepared and brought by me before the House to deal with the concerns I have mentioned. It is based on correcting the shortcomings with the current system on a basis that would utilise existing skills, agencies and competencies and which would not place an additional drain on the Exchequer.

The Bill seeks to amend the Electricity Regulation Act by conferring additional responsibility on the Commission for Electricity Regulation to have a general overall supervisory function. The commission would exercise its supervisory functions by ensuring bodies such as the Register of Electrical Contractors of Ireland, the Electrical Contractors Safety and Standards Association or any regulatory body recognised as having competence in this area would operate to certain consistent standards.

The Bill would also oblige all electrical contractors and electricians to register with such bodies which, for the purpose of the Bill, are known as the electrical contracting supervisory bodies. The scheme envisaged under the Bill would make best use of existing resources and expertise and do a considerable amount to remedy the existing shortcomings within the system of regulation.

The Bill has a number of key features which I will itemise. The Commission for Electricity Regulation, known as the commission, would be given the power to ensure the electrical contracting industry operated to the highest possible standard of public safety. All electricians, electrical contractors or employers engaging electricians for the purposes of carrying out electrical work in factories or plant would be obliged to register on an annual basis with an electrical contracting supervisory body. The Bill would provide that no person could be a member of more than one such body. This would correct a shortcoming with the current system of regulation where contractors have adopted what might be described as an à la carte approach or attitude to supervision and regulation. As there have been some concerns that any attempt to address this could fall foul of the Competition Act, the legislation seeks to address that matter head on. The measure would make good sense and stand up to scrutiny under the Competition Act.

The legislation also seeks to impose criminal sanction where a person engages in electrical contracting work while not registered with one of the contracting supervisory bodies. It would also address an additional shortcoming with the current system. The supervisory bodies have been unable to enter premises to inspect work carried out by electricians or electrical contractors in circumstances where the owner of the premises has refused admission. In such circumstances, it is impossible for the contracting bodies to determine if the electrical installation has been completed to a satisfactory standard or if there is some deficiency from a safety perspective. Under this legislation, the Commission for Electricity Regulation could appoint an authorised officer to carry out an inspection, and where it was carried out in a house and the home owner refused admission, there would be a provision facilitating a court order to permit such an inspection.

The legislation also contains a provision that would prohibit the Electricity Supply Board from permitting the connecting to its network of any premises unless the applicant could supply proof that the electrical installations and repair work at the premises had been carried out by a registered contractor, electrician or employer. The Bill also contains a provision that would allow the Commission for Electricity Regulation to direct the board to disconnect supply in certain limited circumstances.

The electrical contracting supervisory bodies should be licensed by the Commission for Electricity Regulation and have their functions as set out in section 8 of the Bill. In general terms, they should be solely concerned with the supervision of members and aim to maintain and improve the standards in the provision by them of such services for consumers. These supervisory bodies should not have any trade or commercial objective but be solely concerned with regulation and the interests of public safety.

The Commission for Electricity Regulation would have a central role in the regulation of electrical contracting in Ireland under the proposed legislation and set out the technical codes of practice to which electricians, electrical contractors and registered employers would have to adhere in the performance of their functions. In most cases the commission would merely endorse or employ industry accepted standards and rules.

The Commission for Electricity Regulation would also set out the rules that would apply for connection to the Electricity Supply Board network. It would also dictate the rules and regulations that would apply to the recognition, licensing operation and control of electrical contracting supervisory bodies. This is to address a perceived shortcoming with the existing system of regulation where there are no common rules for the operation, control, management or direction of electrical contracting supervisory bodies.

There is no sustainable or convincing reason the Government should not accept the Bill. The structure and solution proposed are not controversial. There is widespread support from all the organisations associated with electricity safety, and the measures proposed in the Bill would utilise existing structures and resources without placing the burden of a single additional cent of funding on the Exchequer. The most compelling reason for accepting the Bill is that it would save lives. The sooner the Government accepts this, the more lives that will be saved. What more compelling reason could there be for accepting the legislation?

I am honoured to have the opportunity of seconding the motion, "That the Bill be now read a Second Time." This long overdue legislation seeks to establish a statutory regime for the regulation of the electrical contracting sector with the overall purpose of improving public safety. It aims to build on the existing regulatory regime that has been in operation since 1996 and address serious shortcomings in the current system identified in the report of the review group on public safety published in July 2000. The issue of better regulation in the electrical contracting sector has been of concern for some time to all organisations associated with electrical safety. The major impetus for change in this area came from the review group on public safety which stressed the urgent need to tackle certain inadequacies in the regulation of electrical contractors. The need for reform has also been acknowledged by all bodies associated with electricity such as the Register of Electrical Contractors in Ireland, RECI, the Electrical Contractors Safety and Standards Association, the Electro-Technical Council of Ireland, the ESB, the Health and Safety Authority and related Departments. The amount of support for change is a glaring indication of the urgency of the Bill.

Electricity is one of the greatest forms of energy today and one cannot imagine how different our lives would be without it. However, if mismanaged, our silent servant can be deadly. In 2001, 17% of all fire fatalities were in fires attributed to electricity. In 2000 the figure was 9% but in 1999 the figure was 19%. It was 18% in 1998. In 2000 almost 1,500 fires were caused by electricity, one third of which were due to electrical wiring installations. The figures speak for themselves and it is a miracle that more lives have not been lost.

While all these fires and fatalities cannot solely be attributed to the standard of work electrical contractors carry out, it is alarming that the incidence of accidents is at such a high level. We need an effective regulatory system for electrical contracting work in order that consumers have the best protection when hiring contractors. The legislation proposes to create a system where all qualified electrical contractors will need to register with a self-regulatory body which will ensure that standards are maintained and consumer safety is upheld.

The current situation regarding regulation of electrical contracting is unsustainable. What we have at the moment are two self-regulating bodies for electrical contractors with no clear harmonisation of standards. Membership is voluntary and the enforcement of safety standards is difficult. At present, domestic customers have no statutory or regulatory protection against shoddy work. While people in the workplace have some protection from the Health and Safety Authority, there are difficulties with the inspection of contractors' work in situations where the owners of premises are not prepared to allow the regulatory authorities to carry out inspections. Difficulties have arisen where people who are not members of the current regulatory organisations carry out work and where forms are presented to the ESB on their behalf for unsupervised and uninspected work.

The form of regulation in the Bill is uncomplicated. It is easily accomplished as it relies on the existing established structures but corrects the shortcomings in a statutory context. The process outlined utilises the skills and experience of RECI and ECSSA and involves the Commission for Electricity Regulation in a general supervisory scheme. It is a cost effective means of addressing a difficult and serious issue.

The Bill proposes that the CER be given the statutory power to oversee the sustained harmonisation of the safety and technical standards of the electrical contracting industry in Ireland. To ensure best consumer protection, the Bill proposes to make it an offence for an unregistered contractor to carry out any electrical work. All electricians and electrical contractors will be obliged to register with the supervisory bodies regardless of whether they work full-time or part-time as electricians. There is no reason why the standards of care or supervision for consumers using electrical contractors should differ depending on the type of contractor they hire. The standards should be consistent and should apply to all electricians and contractors.

The reforms are inexpensive and therefore of minimal cost, if any, to the Exchequer as the annual registration fee payable by the electrical contractors to the self-regulatory bodies will fund the process of registration. This Bill will save lives. The measures proposed can only work to improve the current situation. The proposed legislation will ensure greater public safety, greater consumer confidence in the electrical contracting industry, a harmonisation of standards among the self-regulating bodies and obligatory registration for qualified electrical contractors with a self-regulatory body.

It is almost three years since the report of the review group on public safety was published and the issues of concern have still not been addressed. This Bill aims to tackle those concerns and to put public safety at the forefront of the electrical contracting industry. Safety is the watchword which is and should be of paramount importance. I hope the Government will accept this Bill and, accordingly, I commend it to the House.

This measure was first introduced in the Dáil in January 2002. A detailed consultation process has been in place since then in order to introduce comprehensive legislation in the area and this has perhaps superseded what is proposed here. Hopefully, Senator Higgins's efforts will expedite the publication and introduction of the new electricity Bill which I understand is to appear towards the end of the year.

The purpose of the legislation before us is to bring electrical contractors, for certain purposes, under the remit of the Commission for Electricity Regulation. The main functions of that body, at present, relate to electricity generation and competition within the sector. What is proposed appears to introduce another layer of bureaucracy which we could well do without. It requires businesses and industry to register on an annual basis. As public representatives, one of the biggest complaints we hear from small businesses in our constituencies regards the amount of red tape that the Oireachtas has created. In many ways it has helped to strangle many businesses and some decide it is not worth the effort. Electrical contractors, by and large, fall into this category as most of them are small operators.

Electrical contractors must be fully qualified to operate as such and will not have RECI recognition if they are not competent to do the job. I accept the point made about safety, which must always be paramount, but the industry is instituting proper controls in this area. Therefore, I do not believe we need to impose by statutory regulation what is already happening in practice.

I am concerned that the definitions in section 2 are a little loose. For example,

"Electrician" means any person or undertaking engaging in the installation, repair, maintenance or construction of electrical installations in domestic, commercial, industrial, or other premises or public place.

This seems to suggest that anybody can be an electrician. I know nothing about electricity except how to change a bulb or to wire a plug but if I attempted electrical work I would be classed as an electrician, according to my reading of the Bill. We cannot allow that to happen. We have a good system in place through RECI but that does not appear to be recognised in this proposed legislation.

We should remember that RECI, which is a self-regulatory body for the electrical contracting industry, was formed in 1992, at the request of the then Department of Energy, in order to improve the standards of electrical installation work. There are other regulatory bodies but RECI is the best known. Its aim is to promote and protect the interests of the public as users of an electrical service so that they can obtain an acceptable standard of workmanship and technical competence within the electrical contracting industry.

RECI also provides a high level of assistance to the industry to achieve this standard. Anybody with experience of dealing with it knows this is true. The contractors recognised by RECI must possess technical qualifications not less than those of an electrician, have had on-site responsibility for electrical installation work for not less than three years, be engaged in the business of electrical contracting, be in possession of public liability and employer's liability insurance, and be in possession of equipment, including test equipment and tools and a copy of the wiring rules.

In order to ensure that all its members are up to date with current practice, RECI monitors the standard of their work. It also carries out an inspection service for non-registered contractors and runs training courses on the various aspects of the wiring rules. It has published a guide and video on testing and it provides technical information and assistance to registered contractors. In addition RECI also produces a quarterly news update in order to ensure that all of its members are kept up to date with best practice and that standards are maintained.

There was a detailed consultation process from which shortcomings in the present system were identified. These included different criteria for membership of existing self-regulatory bodies, incompatibility in the penalty provision for non-compliance, and problems accessing premises for the purpose of inspection.

I understand the CER is currently finalising the general criteria based on internationally recognised product certification and quality assistance standards which will apply to all contracting regulatory bodies that wish to be licensed by it. In the interim, the proposed approach is enforceable through the introduction of particular conditions within the distribution system operator, DSO, licence issued under section 14 of the Electricity Regulation Act 1999.

In the short-term approach by the DSO, the receipt of a completion certificate becomes mandatory prior to connection and only those contractors who are members of approved self-regulatory bodies can submit a completion certificate to the DSO. It is hoped that statutory backing for this approach will be provided in the new electricity Bill.

At present, connection of installations only covers about 60% of the completion certificates issued. DSO involvement is perceived to be insufficiently wide at present because the remaining 40% of certificates cover maintenance work, additions or changes to the electrical installation which have no impact on the electricity supply.

There are also gaps in the criteria drawn up arising from a High Court case to comply with competition law. These criteria are not prescriptive enough, particularly in regard to admittance to membership, standards of workmanship and disciplinary procedures. Self-regulatory bodies are, in essence, operating to different standards, which undermines the promotion and implementation of best practice in the electrical contracting industry.

Standards must be harmonised to achieve best practice. Statutory backing is required to achieve this and unfortunately this is another area that is not tackled properly in the Bill. I commend Senator Higgins for presenting us with the Bill and affording us the opportunity to discuss this important area. However, I cannot support it and would prefer to wait until more comprehensive legislation is introduced later in the year.

My involvement in this area is with ComReg and I was also involved with its predecessor. The quality of service to the consumer was always assumed to be something that would follow automatically from the generation of competition. This is a classic example of where competition between inadequately regulated electrical contractors, for example, will not provide consumers with the reasonably priced and safe service of sufficient quality that they want.

I welcome the fact that Senator Higgins has introduced the Bill and I watched his contribution on the monitor in my office. I welcome the fact that RECI and other bodies are enthusiastic supporters of this approach. The best way to bring about high-quality regulation of the service provided to consumers is to give legal authority to bodies that are technically skilled but which are not involved in the marketplace. I am wary of many such bodies because, to a degree, they tend to look after the interests of their members in the marketplace. As the recent report by the Competition Authority suggested, they do more than ensure that high standards are met because they make sure that high prices are charged as well. I am glad, therefore, that Senator Higgins has made it clear that the bodies to which the legislation refers would be precluded from getting involved in the marketplace. Their job would be to ensure that high standards are met.

The legislation, apparently supported by those in the best position to know what is safe, is recognised by everybody to fill a gap in terms of consumer protection. I accept that there are certain matters to be addressed in respect of connection, but an enormous amount of domestic electrical work does not involve new connections. What satisfactory guarantee can a consumer have that existing regulations are being adhered to when he has an electric shower installed? This is a classic, high-risk case because it involves levels of electrical current that could do enormous damage. If the consumer uses an electrical contractor who is a participant in RECI, he has some guarantee. Otherwise he has no guarantee that the electrician who comes to his home is a member of a body that insists on minimum standards, nor has he any method or receiving recompense for shoddy workmanship. This is not simply a question of whether a washing machine or lawnmower works or whether a garage does a proper maintenance job on one's car. Safety, the primary motivating factor behind the Bill, is something people take too much for granted.

Previous Governments did not always refuse to accept Private Members' Bills. I can list a significant number of exceptions to that rule in both Houses of the Oireachtas. If ever there was a case for at least acceptance, in principle, as a statement of future intent by a Government, this is it. It is not about the finer points of consumer rights but the safety of those not in a position to make proper judgments about the work being done on their behalf. In many cases the job may work, which is probably worse because there is a greater hazard involved when something works and the danger is not apparent. I do not understand the reason the Government cannot make a statement of intent and accept the Bill on Second Stage. What need does it have to vote down an idea which everybody agrees is a good one?

The Bill before the House seeks to introduce more legislation in this area and, specifically, provide for the regulation of the electrical contracting sector. While I can see certain benefits to the industry contained in the Bill such as the proposal to extend the functions of the Commission for Electricity Regulation, I also foresee a number of problems and difficulties with it.

I have serious difficulty with the specific form of regulation proposed to apply to the electrical contracting sector. The Bill seeks to impose an obligation on all electrical contractors, electricians and employers of electricians operating in factory environments to register with an electrical contracting supervisory body which would ensure adherence with a selected list of technical codes. While I agree with this idea in principle, there are a number of problems arising from the proposed system. The Bill appears to propose a rigid, inflexible and restrictive system of regulation. It would restrict all electrical work to registered contractors, require businesses and industries to register with the proposed supervisory body on an annual basis. It proposes to restrict contractors to registering with only one authority. Surely such a system would be uncompetitive and potentially increase costs to the consumer.

It also strikes me as unusual that the Bill should propose extending the functions of the Commission for Electricity Regulation, while at the same time not reflecting the stated policy and advice of the authority. If we consider that the commission was founded to review and improve the regulatory system in this sector, and in the process has assumed the role of supervisory regulator for the electrical contracting industry, surely we should look to it for advice when seeking to introduce legislation in this area?

The CER views this Bill as untimely and overly restrictive and has devised an alternative approach which combines both interim proposals and long-term goals to achieve appropriate regulation of the sector. The Minister will outline this two-pronged approach. I hope to see that he has taken on board the worthwhile advice of the CER. In the short term the commission has already assumed the role of supervisory regulator for the proposed scheme and taken major steps towards establishing a balanced regulatory system. It has consulted extensively with all interests in the industry and is currently finalising the general criteria, based on internationally recognised quality system standards, which will apply to all electrical contracting regulatory bodies.

Legislation, which is expected to be published at the end of this year, will give statutory support to this development, as well as providing for authorised officers to inspect electrical installations and impose fines and penalties for any substandard and hazardous work. This will be a fully comprehensive Bill which requires a certain amount of time to draft. It will consolidate existing electricity legislation while eliminating any unnecessary statutes currently in force. I appeal to all Members of the House to recognise the value of both the Department's and the commission's extensive work in this area and welcome that Bill when it comes before the House.

I am confident that the Government, through the commission, has provided a sound and comprehensive framework for the development and regulation of the industry at a balanced pace. By combining the many steps already taken in this area with the forthcoming legislation we will ensure sufficient regulation of the industry is established, while at the same time adequately and securely providing for the demands of a growing economy.

Surely we can all agree that for development in this sector to be successful, safe and dependable we must proceed in this planned and balanced fashion. The Government is conscious that its actions must be sufficiently flexible to accommodate industrial and commercial developments, while at the same time legislating for the regulation of the sector to ensure the health and safety of both consumers of electricity and electrical contractors alike.

For these reasons, I oppose the Electricity Regulation (Amendment) Bill brought forward by Senator Higgins and again commend him for giving us the opportunity to discuss this important issue. I look forward to debating the forthcoming Electricity Bill at the end of this year. Once again, I thank the Minister for coming to discuss the issue. I also thank all those at the Commission for Electricity Regulation for their outstanding work in this area to date.

The system of regulation is intended to be self-financing and enforce no additional drain on the Exchequer. Does this mean that the costs of the electrical contractor will, in turn, be passed on to the public? The public has been asked repeatedly in recent times to make up for the shortfalls of the Exchequer. Such assurances that the public purse will be spared leaves me feeling a certain unease.

There are a couple of points in the Bill that need clarification and explanation. The Bill would extend the functions of the Commission for Electricity Regulation and confer powers on it to inspect work on electrical installations. Who appoints the commission? It is important that it is appointed by an independent body. Perhaps my good friend, Senator Higgins, will enlighten me on this.

A fine of €1,961 would be imposed on those found guilty of an offence. I am deeply puzzled as to how this figure was reached. Would it not have been simpler to round it up to €2,000, or am I perhaps missing something of significance?

The installation of electrical systems is a matter of the utmost trust. The average person is completely ignorant of such matters and totally in the hands of the contractor. Unless we put the most stringent measures in place, people will fall victim to unqualified cowboys and lives and property will be lost, lives being the main concern as a life cannot be replaced. Failure to support the Bill would represent a gross neglect of our duty to protect citizens and ensure everyone has the benefit of a safe environment in which to live and work.

I start by setting out the background to this matter. On 20 June 2001 my predecessor, the present Leader of Seanad Éireann, Senator Mary O'Rourke, at the time Minister for Public Enterprise, was asked by means of a Dáil question for her views on the establishment of a statutory authority for the regulation of the electrical contracting industry. She indicated that she had always placed the highest priority on matters of public safety, a priority which I share. It was for this reason that she had, through the Department of Public Enterprise, as it was at the time, formally request the Commission for Electricity Regulation to advise her on the potential of a role for the commission in the regulation of the electrical contracting industry. She also asked how it could best approach the performance and oversight of such an additional function in the most cost effective and efficient manner.

In the reply to the Dáil question the then Minister clarified that the commission had confirmed to her Department that it was agreeable, in principle, to assuming this additional function. It had initiated work on devising an appropriate scheme for the regulation of the industry and identifying the financial and human resource requirements as a basis for its recommendation to the Minister. Additional staff had been allocated to facilitate the carrying out of this task and the commission had assured the Department that work on devising an appropriate scheme would be given priority.

My predecessor pointed out in the Dáil that legislative provisions for the assignment of this additional function to the commission could be included in the forthcoming Electricity Bill. She further indicated that she had recently received representations on behalf of the Register of Electrical Contractors of Ireland and that her officials had met with RECI to discuss its proposals in relation to the regulation of the electrical contracting industry. The Department had suggested that it would be useful for RECI to contact the commission with any proposals it might wish to make, including proposals for any interim non-statutory arrangements, in order that these could be taken into account by the commission in formulating its recommendations to the Minister.

In March 2002 my predecessor received the report of the Commission for Energy Regulation. The commission undertook a detailed and comprehensive approach to this, including widespread consultation with the industry, as is its well established practice in regulatory matters. Specifically, in drawing up its report the commission undertook a review of the current system for regulating electrical contractors which examined the respective roles of all interested parties, including present self-regulatory bodies within the sector, the Register of Electrical Contractors in Ireland, the Electrical Contractors Safety and Standards Association, the ESB, the distribution system operator, the Electrical Technical Council of Ireland and others who represent electrical contractors.

Shortcomings in the present system were identified, including different criteria for membership of existing self-regulatory bodies, incompatibility in the penalty provisions for non-compliance and problems accessing premises for the purposes of inspection. Options to address the deficiencies in the present system were considered, taking account of the cost effectiveness, efficiency and impact on the quality and safety of electrical installations of each option. The proposed approach advocated by the Commission for Energy Regulation in its report involved two phases of implementation – a short-term and long-term approach.

It proposed that the long-term approach be given statutory backing within the proposed new Electricity Bill which should contain specific reference to the following: statutory backing for a new role for the commission which authorises it to licence self-regulatory bodies within the sector in line with criteria submitted by the DSO; provision for access by authorised officers to premises to inspect electrical installations in respect of public safety requirements; and provision for penalties for breaches or misuse of the completion certificate system. This approach builds on the strengths and well-established roles of the main players.

It further provides for a regulatory approach which recognises the diversity of work and skills in the electrical contracting industry while providing the necessary reassurance for customers and the public in respect of the safety of electrical installations. The key elements of the interim proposal are that the commission will assume the role of supervisory regulator for the proposed scheme and the distribution system operator will be required to assume responsibility for the day-to-day operation and monitoring of the scheme.

My predecessor accepted the commission's report on 28 March 2002. She subsequently responded in April 2002 to representations she had received from Deputies and Senators, with which they had enclosed a letter from the general manager of RECI seeking support for a similar Private Members' Bill to the present one, proposed on 8 January 2002 by the then Deputy Jim Higgins in relation to regulation of the electrical contracting industry. The then Minister replied to these representations by enclosing a copy of her letter dated 16 April 2002 in response to the letter to her from the general manager of RECI in which she stated that she fully recognised the importance of this issue, both for the industry concerned and, more importantly, public safety reasons. She indicated in her response that she was pleased to say she had recently received the report of the commission and that she had accepted its recommendations in full. The report, which she made available on the Department's website, followed a review by the commission of current arrangements relating to the electrical contracting industry and took account of the views of those involved in the sector, including RECI. She added that she was pleased to be able to report on the positive progress achieved in the light of the report of the commission. She expressed confidence that it would consult fully with the industry and the public as matters progressed in line with its customary practice.

In response to the then Minister's letter of 16 April 2002 the general manager of RECI wrote on 20 May 2002 noting that the then Minister had accepted the recommendations of the Commission for Energy Regulation in full. The general manager stated he understood that the role of the commission would be undertaken on an interim basis pending the adoption of new legislation. He also stated RECI looked forward to engaging with the commission to ensure the system envisaged by it and approved by the then Minister could work effectively for the trade and, most importantly, consumers. He finished by stating that, on a personal note, he wished to thank the then Minister for her commitment to resolving this difficult but important issue. He expressed the hope the interim solution involving the commission would pave the way for a positive and constructive permanent statutory solution.

Since my predecessor approved the new mechanism for the future regulation of the electrical contracting industry, work has been ongoing to implement the agreed interim measures. The Commission for Energy Regulation agreed and published an implementation timetable for the new approach in August 2002. The distribution system operator was tasked with developing new and more detailed criteria which, when the legislation is in place, applicants to the commission for a licence to act as an electrical contracting regulatory body will be obliged to meet. In this regard, the DSO held discussions on the proposed new approach with all interested parties and, in particular, the following: the Association of Electrical Contractors of Ireland; the Electrical Contractors' Safety and Standards Association; the Electrical Contractors' Association; the Electro-Technical Council of Ireland; and the Register of Electrical Contractors of Ireland.

The implementation of the interim approach is on a voluntary basis and is dependent on the agreement of all existing regulatory bodies to the criteria for the regulation of the industry. The draft criteria for the recognition of self-regulating bodies was published for public consultation by the Commission for Energy Regulation last November. The Commission for Energy Regulation, in consultation with the electrical contracting regulatory bodies and the DSO, is currently finalising the general criteria, based on internationally recognised product certification and quality systems standards, which will apply to all electrical contracting licensed regulatory bodies that wish to be licensed by the Commission for Energy Regulation.

The finalised criteria will address the specific electrical contracting industry requirements and will ensure that the industry is operated in a manner which meets the highest possible standards of public safety. The objectives of these criteria are to ensure that installations on the customer side of the meter are safe, installed, tested, certified and maintained to the correct standards. Such installations should only be completed by competent and qualified contractors. I understand the commission is expecting sign-off by the bodies concerned within the coming days. It is expected that the phased introduction of the new approach will commence next month.

Given the substantial progress that has been made, with which Members will agree, it is difficult to understand why the Private Members' Bill proposed is being brought forward at this time. Commenting on a similar Private Members' Bill of January 2002, to which I referred earlier, the Commission for Energy Regulation said that it proposed a rigid and inflexible system which would restrict electrical contracting work to registered contractors and electricians of the self-regulatory bodies and would require businesses and industries to register on an annual basis. That Private Members' Bill was inappropriate – as is the legislation before the House – particularly in light of the advice my Department has received from the Commission for Energy Regulation. It is also untimely in view of the substantial progress made by the commission at the request of my predecessor, with my support, and that of the industry.

I refer to the electricity Bill, which is the means by which the commission's role as regulator of the electrical contracting industry will be given specific statutory footing. This is major legislation which will deal with a number of other issues and which my Department is currently drafting in conjunction with the office of the parliamentary counsel. The Bill will consolidate existing electricity legislation while eliminating any unnecessary statutes currently in force, resulting in comprehensive legislation which will be more user-friendly and accessible. In addition, it will deal with any remaining regulatory and restructuring issues in respect of the electricity industry.

In framing the future legislation, consideration is being given to the proposed requirements of the current draft electricity directive. Senators will appreciate, therefore, that this is considerable legislation which requires a certain amount of time to draft. As already indicated, the draft heads include a provision to provide for the regulation of the electrical contracting industry.

In keeping with best practice, my Department placed the Bill on its website in November 2002 and received a wide range of comment in response to this consultation process. Included among these comments was a submission from RECI which responded in a constructive manner by outlining issues it considered needed to be addressed in the Bill in the interests of consumer protection and public safety. These views, along with all other submissions on the Bill, are being given active consideration in my Department. The detail of the provision to deal with the regulation of the electrical contracting industry is currently being considered by the Department in consultation with the Commission for Energy Regulation. Once finalised, the text will be forwarded to the parliamentary counsel's office for inclusion in the electricity Bill, which is expected to be introduced in the Oireachtas by the end of this year.

There is every reason to believe that with the goodwill of all in the industry, the interim measures being introduced by the Commission for Energy Regulation will provide a satisfactory solution until such time as the regulation of the industry is placed on a permanent statutory footing through the forthcoming legislation. For all those reasons, the Bill before the House is untimely and I am not in favour of accepting it. However, I thank the Members who brought it forward so that I could put on record my views and those of my Department.

I am disappointed the Government has not come up with a firm reason that it cannot accept the Bill. The various Government speakers expressed the wish that legislation be brought forward in this area. It would have been opportune for them to accept and amend the Bill if they felt amendments were necessary. Each day the House takes the Committee and Report Stages of Bills, many of which are amended in some way. I have not heard an argument from the Government that the Bill is fatally flawed. If the Government has difficulties with the Bill, Senator Higgins would be more than open to amendments to it. The manner in which the Government has dismissed the Bill out of hand is not good enough.

It is important that we have a legislative framework in this area. The Government has promised it will introduce a Bill before the end of the year, but we have heard promises about other legislation which has never materialised. This is a missed opportunity. The Government will not accept what is basically a good Bill and propose – if there is a need to do so – amendment that would make it better. It has trotted out the usual party political line of the Government not accepting an Opposition Private Members' Bill. I commend the Bill to the House and congratulate Senator Higgins on introducing it. I urge Government Members to think before dismissing the Bill.

Mr. Fitzgerald: I commend Senator Higgins for bringing the Bill before the House. The issues addressed are current in the electricity industry. The proposals the Senator has put forward for a system of regulation, as the Minister pointed out in great detail, are being taken up in ongoing consultations and dealings with the Minister's Department, the commission and the players in the industry. The issue of safety is of paramount importance in any industry, particularly in this industry which differs substantially in the area of safety even from related industries.

The issues under discussion and the proposals put forward in the Bill are relevant to the debate and reflect the need for the updating of legislation in this area. It has been acknowledged that Senator Higgins has invested much time and research in this. I note from the Minister's speech that this Bill surfaced at the beginning of last year in the Dáil, of which I was not aware. Nevertheless, it is clear from the Minister's speech that considerable progress has been made since then. The consultative process initiated at the direct request of the then Minister for Public Enterprise, Senator O'Rourke, to the Commission for Energy Regulation, and the recommendations which it brought forward after that widespread consultation, were fully taken on board by the then Minister. The acceptance of those recommendations is acknowledged clearly in the Minister's speech and I am glad to hear of that.

I have considered the report in some depth and have noted its recommendations. It is not true that little or nothing has been done since this Bill was first published in January 2002. A considerable amount of consultation and development have taken place; that may be on a non-statutory basis but it is very much in evidence. The exchange of letters between the players in the industry and the Minister, as noted in the Minister's speech, clearly confirms that this is so.

While I very much welcome the intent in the principles regarding safety contained in the Bill and the opportunity to discuss this matter, I can understand why the Minister, involved as his Department is in the ongoing development towards a new electricity Bill, should see fit not to accept the Bill and that he would rather, having noted what is commendable about it in terms of safety within the industry, wait for the final evolution of the new Bill in the autumn of this year. My party is happy to support that. We have no doubt, given the evolutionary process in the ongoing discussions and the developments that have taken place, that the new Bill will be far more comprehensive than the Bill before the House.

I pay tribute to the Commission for Energy Regulation for its report. I welcome the Minister of State, Deputy Michael Ahern, to the House and extend that welcome also to the Minister who preceded him this evening, the Minister for Communications, Marine and Natural Resources, Deputy Dermot Ahern. I pay tribute also to the former Minister, Senator O'Rourke. It is appropriate when talking about electricity regulation that we should note that it was she who laid the foundation stone with regard to regulation. Her Electricity Regulation Bill 1998 was groundbreaking legislation. It made history in that it signalled the beginning of a new era for the electricity industry.

Had the Bill been brought in five to ten years previously, the Minister would have been a prime candidate for the electric chair because the ideologues would have rained fire, fury and, perhaps, electricity on top of her head. She would never have got away with it. It is amazing how times change. The passing of the Bill in 1999 demonstrated a very significant change in attitudes and a facing up to the realties. Market forces had changed and conditions had brought about the globalisation of markets and the unstoppable move towards liberalisation, which applied equally in the public and private sectors. That historic Bill introduced competition to the industry for the first time and provided a regulatory framework to oversee and manage competition. It was the most important legislation in regard to the electricity industry since the establishment of the ESB under the Electricity (Supply) Act of 1927.

I pay tribute to the ESB for the tremendous work it has carried out at management and employee level. Although it enjoyed a monopoly position prior to the introduction of the 1998 Bill and, at times, caused much grief to individual customers, communities and industry, it has served the country and industry well, with some acknowledged hiccups. It has a proud record. I also pay tribute to the commissioner for energy regulation. The commissioner is very much a part of this Bill, the ongoing consultations between the players in the industry and what the Minister sees as part of the way forward for the development of more effective regulatory practices and, where appropriate, the placement of safeguards on a statutory basis.

When Mr. Reeves was appointed – I believe he is still the commissioner – he was to face a daunting task which I will briefly refer to because it is something we tend to forget in the rush to focus on a particular issue. While the commission was funded by the industry itself, the commissioner had to focus primarily on the protection of the interests of the final customers; he had to ensure non-discrimination between electricity undertakings and promote competition, safety – which was at the heart of his brief – security of supply, efficiency and economy, and this still applies today. The commissioner also had to take into account concerns about the protection of the environment as well as the licensing, generation and supply of electricity and the authorising of the building of electricity generating stations.

When the commission drew up its report for the Minister in March 2002, it pointed out that all the parties consulted agreed that there was a compelling need to address the shortcomings in the existing system. However, there were different views as to the roles to be assigned to the various players in the industry. This is an important point in the context of the position the Minister is now in and where he intends to go. There are very differing views within the industry. Some call for an expanded role for themselves while others look to the commission to embrace the new safety role.

In view of the points made by my colleagues and the Minister, while I welcome this Private Members' Bill and acknowledge the work invested in it by Senator Higgins, I do not believe it appropriate that the House should support it.

The Electricity Regulation (Amendment) Bill 2003 is not perfect, just as legislation introduced by the Government, with all its drafting experience and resources, is not perfect. I remember having to bring forward 193 amendments to the Stock Exchange Bill 1994 when I was Minister of State at the Department of Finance. Many Bills have come through the Oireachtas, but I have never seen a Bill that did not need to be changed by amendments introduced by the Government. The essence of this Bill is sound and I wager that the Government's electricity regulation legislation, when it is eventually brought forward, will be built on the kind of pyramid model that I have proposed. In other words, the recognised supervisory bodies will operate under the Commission for Electricity Regulation and set criteria and standards will have to be enforced on a regular basis.

I thank Senator Kenneally, who said that this Bill will provide another layer of bureaucracy, for his comments. This legislation places the existing system on a statutory basis and compels electricians to register with RECI. Surely nobody can call RECI bureaucratic, as it performs its work in an efficient and non-bureaucratic manner, without red tape. I thank Senator Ryan for his contribution and I stress that I feel he is right. He spoke at length of his considerable professional experience of the lethal nature of electricity. As he said, the figures in that regard speak for themselves. I thank Senator MacSharry for his constructive comments. All Members on the Government side of the House were extremely complimentary at first, but they then sounded the death knell in the form of the word "but".

I compliment Senator Bannon, who sought clarification in relation to when the Commission for Electricity Regulation will be appointed. As I have said, the commission has been in existence for a considerable time and performs excellent work. Mr. Tom Reeves is the commissioner. The Minister said that when the commissioner was consulted about my Bill this time last year, he said that it was too rigid and inflexible. I make no apology for introducing a rigid and inflexible Bill dealing with the control of electricity and electricity standards, as we cannot afford flexibility and loose standards in relation to such a lethal substance. I compliment and thank Senator John Paul Phelan for his supportive comments. Senator Fitzgerald was also very supportive.

This legislation provides a stimulus for action. If it had not been published, I do not think we would be at the juncture we have reached. My party looks forward to the publication before the end of the year of the Government's Bill. I give this House a commitment, a promise and a pledge to watch the timetable of the Government Bill with great vigilance. It has been promised by the end of the year and I will watch to see whether it is delivered. If not, people will die in the meantime. This issue, which goes to the heart of what we discuss, is important. My party will harry, harass and press the Government on a regular basis to determine where it is at.

Irrespective of what has been said about the Electricity Regulation (Amendment) Bill 2003 and the manner in which it has been drafted and constructed, I wager that the Government Bill, when it is eventually published, will be fundamentally modelled on it. It will have a pyramid approach, with the CER at the top and the regulatory bodies, ECSSA and RECI, as the second tier, carrying out the work on the ground in a non-cost manner. It will not cost the Exchequer anything. The consumer will be well-served by this legislation, which is long overdue. I hope that this legislative initiative has provided the necessary urgency, impetus and stimulus.

Question put.

Tá

Níl

Tellers: Tá, Senators Coghlan and Higgins; Níl, Senators Minihan and Moylan.

Question declared lost.

An Leas-Chathaoirleach: When is it proposed to sit again?

Ms O'Rourke: At 10.30 a.m. tomorrow.