Written answers

Wednesday, 16 November 2005

Department of Communications, Energy and Natural Resources

Electricity Generation

9:00 pm

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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Question 95: To ask the Minister for Communications, Marine and Natural Resources his role in the proposed separation of the ESB and EirGrid; the person who has responsibility for negotiation of the contract conditions for staff transferring from ESB to EirGrid; and the action which can be taken should such a negotiation procedure prove inconclusive. [34534/05]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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The model whereby EirGrid as transmission system operator is to be separated from ESB is laid down in statutory regulations made in 2000 and 2005, in furtherance of obligations under the second electricity market directive, 2003/54/EC. ESB as the current employer and EirGrid as the prospective new employer have between them the duty to bring about the transfer of staff. Other aspects of the separation are to be governed by an infrastructure agreement drawn up under the guidance of the Commission for Energy Regulation. The necessary approval of the CER to this agreement was given on 14 October.

As de facto shareholder, I and my Department monitor developments in reward systems generally in State companies under my aegis. This is done in consultation with the Department of Finance. In that context I would be concerned to ensure that no reward or incentive is given over and above that which is necessary to protect staff fully in respect of their current terms and conditions of employment and pension entitlements. The boards of both companies are aware of my role and views in this matter and it is for them to find an acceptable solution. I believe it is appropriate for me to keep my options open as regards alternative solutions if the parties fail to agree. This problem is now urgent.

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