22 Mr. Connaughton asked the Minister for Public Enterprise the towns in the west which will be connected to the gas grid as a result of the Mayo gas field coming on stream; the proposals An Bord Gáis has for the distribution of such gas throughout the west; if An Bord Gáis will provide gas connections to some areas provided the Government enters into a social contract whereby any increased costs arising from such connections will be funded from the Exchequer; and if she will make a statement on the matter. [10225/02]

BGE is obliged to ensure that extensions to the gas distribution network meet commercial viability criteria. While the closer a town is to the main transmission network the better are its chances of getting a gas service, BGE continuously reviews and evaluates towns at longer distances.

BGE has announced that, within Connaught, Ballinasloe, Oranmore and Galway will get gas from the Ringmain. BGE has also confirmed that the board is actively considering connections to Castlebar, Westport, Tuam and Athenry from the proposed Mayo-Galway line.

To the extent that towns might be supplied on the basis of an Exchequer grant, as in the case of Sligo and Ballina, this raises issues about EU State aid and procurement rules. My Department has already been in touch with Commission officials about this. The right to construct the line to Sligo, for example, will be established in a tendering process and this will be a precedent for any other grant-aided extensions.