Noel Dempsey (Meath, Fianna Fail)
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As the Deputy is aware, in November 2004 the all-island energy market development framework was published jointly by Mr. Barry Gardiner, MP, the then Northern Ireland Minister for Enterprise, Trade and Investment and myself. The framework document, which was produced in collaboration with the two energy regulators and involved widespread consultation with industry and other energy stakeholders, sets the policy context for the creation of an all-island energy market. It includes a high level development programme, setting out goals and timeframes over a range of policy areas.

As the Deputy is probably aware, the key priority within the framework is to have an all-island wholesale electricity market in place by 1 July 2007. The two regulators are making good progress and have agreed the high-level principles that will govern the operation of the single market. I understand they are aiming to agree the detailed rules for the market by February 2006. This process involves close consultation with stakeholders.

A key task for both Governments is to ensure that an appropriate legislative framework is in place to underpin the single electricity market. While full implementation of the market by July 2007 presents a very challenging timeframe in which the necessary parallel legislation must be enacted, my officials have been working closely with their northern counterparts and the two regulators' offices to ensure that this target is met.

While the main priority is the creation of the single electricity market, the framework document also outlines policy for all-island collaboration in a number of other areas, including gas and sustainable energy. My officials have had discussions with their northern colleagues on the gas agenda and, together with the regulators' offices, have commenced the task of developing a project-driven work programme for the delivery of the objectives outlined in the framework.

With regard to sustainable energy, in July my northern counterpart, Angela Smith, MP, and I published a preliminary consultation paper on an all-island vision for renewable energy to the year 2020 and beyond. The consultation period recently ended and the response has been very encouraging. The aim is to develop a long-term strategy for renewable energy on the island as a whole.

A number of infrastructural projects are also in progress. Bord Gáis Éireann is set to complete the construction of the North-South gas pipeline from Gormanstown to Belfast in 2006. In addition, a second North-South electricity interconnector is expected to be operational by 2012.