John O'Mahony (Mayo, Fine Gael)
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Question 105: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she will prepare a report on the impact on the economy of the current increases in oil prices; if scenarios are being prepared by her in respect of the way in which the economy will respond in the event that the increase in oil prices proves to be of lasting duration; and if she will make a statement on the matter. [44707/09]

Mary Coughlan (Donegal South West, Fianna Fail)
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Retail prices in the oil market take account of factors such as international market price, importation and distribution costs, and Euro/dollar fluctuations. Ireland's high dependence on oil and gas imports makes us price takers, sensitive to the volatility of the markets.

In common with other economies dependent on hydrocarbons, it is clear that Ireland's economic recovery could benefit from stable oil prices at a reasonable level. International fuel prices are a key driver of electricity price increases, which are a particular cost concern for the enterprise sector.

The Government's energy policy is centred on three pillars, namely: security of supply, competitiveness and environmental sustainability. As part of our response to our dependence on hydrocarbons, under the Renewable Energy Directive 2009/28/EC, Ireland has a target of supplying 40% of Irish energy needs from renewable sources by 2020. The concerted effort to attain this goal will see Ireland's reliance on oil decrease in the medium to long term. As a result, Ireland will also be less susceptible by fluctuations in oil price levels.

I receive regular analysis of the impact of our energy policy on the economy from Forfás and the National Competitiveness Council. Their most recent report on energy was published in September 2009. Forfás are also working on a series of papers on different fuel types, which will assist in forming a longer-term framework for energy policy into the future.