Róisín Shortall (Dublin North West, Labour)
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Question 74: To ask the Minister for Communications, Energy and Natural Resources his views in view of the recent vote for strike action by ESB workers on the issue of the break up of ESB, on concerns that have been expressed across Europe that this policy could fatally weaken electricity companies; and if he will make a statement on the matter. [35626/07]

Eamon Ryan (Dublin South, Green Party)
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Management of industrial relations within ESB is, in the first instance, a matter for the Board and management of the company. I am aware of the recent ballot undertaken by a number of the unions within ESB and my Department is continuing to monitor the situation closely. The proposal to transfer the ownership of the transmission assets from ESB to EirGrid is a commitment in both the White Paper on Energy and the Programme for Government 2007-2012. It is in line with the proposal for full ownership unbundling of transmission networks by the European Commission contained in the 3rd Energy Market Liberalisation Package. Most Member States support the proposal which reflects the de facto position in 13 Member States.

As previously stated in this House, combining the ownership and operation of the transmission assets makes sense. It will ensure that the system operates transparently and effectively giving confidence to all market players. The present structure is complex and cumbersome and adds to costs. It creates additional overheads and transaction costs, duplication of skills and activities and the risk of blurred accountability. It also makes for more complex regulation.

The transfer of ownership of the transmission assets will be implemented in a way that ensures the future of both EirGrid and ESB as strong Semi State companies, as well as reflecting the position of the State and the ESOT as shareholders. There is no question of breaking up the ESB.

The ESB Group will remain a strong, commercially viable and integrated entity after completion of this process. The ESB has a vibrant future ahead. Given its prominent role in the Irish energy sector, ESB has a crucial contribution to make in the energy and climate change challenges ahead. It is equally the case that EirGrid has a crucial national role to play in the new energy landscape as the strong independent operator and owner of the transmission system, delivering for all energy stakeholders and for the economy.