Nothing in the European Energy Charter Treaty would adversely affect consumers in this country, the Minister of State for Public Enterprise, Mr Joe Jacob, assured the House.
It promoted long-term co-operation between east and west Europe in the energy field, he said. The opening up of competition and the encouragement of investment could only benefit energy consumers in the west while assisting eastern European economies, he said.
Mr Jacob was speaking in the debate on the Gas Amendment Bill 1998 which passed all stages.
Its purpose was to repeal Section 37 of the 1976 Act, which the Attorney General had advised was anti-competitive and conflicted with the treaty's competition provisions.
The section in question provided that all natural gas landed in the State, or got within its jurisdiction for consumption within it, had to be offered for sale by Bord Gais Eireann on reasonable terms for disposal.
The repeal would not cause a problem for the purchase of natural gas supplies by the board. The natural gas market was one of the energy sectors being opened up to further competition. The EU Council of Energy Ministers had agreed the terms of a directive to introduce competition into this area in the form of third party access to gas networks throughout the EU.
We had already provided for this form of competition and the necessary detailed operating rules were being developed.
Mr Joe Costello (Lab) said the repeal of Section 37 would result merely in a vacuum with no proactive replacement. If the board's status was to be changed they should spell out the criteria, the framework and the parameters in which they wanted to see the new developments taking place.