FG unveils utilities plan

HARRY McGEE, Political Staff

Fine Gael has said it will invest over €18 billion to transform the energy, water and broadband sectors.

Party leader Enda Kenny this morning launched the New Era document, which proposes the setting up of a number of new commercial companies to manage those utilities.

Energy spokesman Simon Coveney said the plan would create 105,000 jobs and give Ireland an edge in fast broadband delivery, would provide the platform for 50 per cent of energy being derived from renewable sources, and would allow 50 per cent of cars to be run on electricity by 2025.

The plan envisages an investment of over €4 billion in the upgrade of water services under one company and a similar investment in retrofitting homes to become more energy efficient.

Mr Coveney said that the paper addressed the three sectors in the Irish economy that he considered most broken from the perspective of competition.

He also said the the State would no longer have control of the energy sector. "It will allow the private sector do what they do best," he said.

“There is no longer a need for the state to own and run Bord Gais, ESB International and ESB Power Gen & Supply,” he said. “Fine Gael will divest the state of these assets when the market and other conditions are appropriate and use the funds raised to re-invest in new 21st century infrastructure.”

The plan also envisages a smart grid, an amalgamation of Bord na Móna and Coillte to create a new bio-energy and biomass company and the creation of a national recovery wholesale bank to organise financing for the strategy.