ESB dispute and security of supply
Gilmore cited threatened strikes at the ESB and Prison Service, alongside recent transport disputes, and asked the Government to ensure continuity of electricity supply amid disagreement over transmission-asset transfers. The Taoiseach urged the parties to resolve the dispute, described ongoing contact with unions and ESB management, and said related legislation and financial arrangements would come before Government.
This morning we heard of a threatened strike in the ESB, with the possibility of power cuts. We also heard of another possible strike in the Irish Prison Service. Last week people walked to work because of a strike in Dublin Bus and a strike in Aer Lingus was narrowly averted for the second time in recent weeks. In the past couple of weeks, there seems to have been a deteriorating industrial relations climate, which was the kind of thing we thought social partnership was designed to avoid, including the strikes and disputes threatened in major public utility companies.
I am particularly concerned about the threatened strike in the ESB which, if it comes about and results in power cuts, will cause much hardship for householders and businesses, particularly if it occurs during the winter period. In any event, the threat of a strike in the ESB must have enormous economic consequences, creating a degree of uncertainty and unease. Normally, in the case of such a strike we would all be calling on unions and management to get together and resolve their differences. The unusual aspect of this threatened strike is that it is not a dispute in the traditional sense between unions and management. Indeed, unions and management in Aer Lingus seem to have the same view on the issue. The issue at the ESB, however, appears to be the Government's plans for the future of the company. In those circumstances, does the Taoiseach or the Minister for Communications, Energy and Natural Resources have plans to meet the ESB's management and unions with a view to resolving this issue and averting a strike, thus preventing the power cuts that would result if a strike occurs?
Comment on this
We discussed industrial relations issues last week in Aer Lingus and Dublin Bus and at that stage I called on workers and management to try to resolve the issues, notwithstanding the fact that in CIE's case the matter had gone through the conciliation process, the Labour Relations Commission and the Labour Court. Every dispute has its own unique position and those involved should try to resolve the issues. I would say the same concerning the ESB. I acknowledge the significant effort put in by unions and management to resolve both disputes to which the Deputy referred. We are maintaining a record of a low level of industrial relations disputes, which is one of the lowest by international standards.
Yesterday, the ESB group of unions received a broad mandate for industrial action in the event of ESB management breaching the terms of the bilateral and tripartite agreements, which form the basis of the terms and conditions of their members and include the organisation's structural arrangements within the ESB. A counting of ballots issued by the constituent unions to their members concluded that the members had voted by nine to one in favour of industrial action. I understand that result must be ratified by the executive members of the unions in advance of their group of union meetings on 29 November. Following that, the unions will request a meeting with ESB management. That is the process that is set out over the next few weeks.
As Deputy Gilmore stated, there are two issues involved that might be impacted upon by this development. The first is the ESB assets strategy which provides for the closure and disinvestment of 1,500 MW of ESB power generation plant as a way of dealing with the ESB's dominance. The second issue is the proposed transfer of the ESB's transmission assets to Eirgrid by the end of next year. That is seen as a key step in securing the competitiveness of the Irish electricity sector. We have gone from a position of having low ESB costs a decade ago to very high. The examination of why that has happened has continued and is reflected in the energy White Paper. Part of it is the issue of dominance and how things are done. Energy issues affect the public so we must get cheaper, effective and efficient energy from electricity companies. The issue is hugely important for the future competitiveness of the economy.
Both of these issues are the subject of commitments contained in the programme for Government. The Minister, Deputy Ryan, has made himself available to discuss these matters with the group of unions and has met them. He has also discussed them with ESB management. There are, however, fundamental questions about the future of electricity in this country and the price we pay for it. It is also about the future of the ESB which is a well structured company with good pay levels. The Government wants to see it thus, but there are issues that must be dealt with, including competition, dominance and the competitiveness of the overall economy. Those are important issues and the Government is willing and anxious to deal with them, as the Minister has made clear.
Comment on this
As the Taoiseach said, it is probably early days in this dispute but most people who are concerned about their electric supply probably are not that concerned about the nuts and bolts of the issues in dispute. They want to be sure they will have a continued supply of electricity. Does the Taoiseach agree that those who are seeking security of supply will look to the Government, given that the dispute is about Government policy, not traditional industrial relations issues about pay or conditions of employment, to ensure the necessary steps are taken to avoid a dispute? Does he consider the deteriorating industrial relations climate is not unrelated to a perception that the Government is feathering its own nest with the pay increases it awarded itself in recent times and that the timing of the recent spate of disputes which are more frequent than we have experienced in recent years is not unconnected to the public's perception that the Government has been looking after itself?
Comment on this
Close liaison is being maintained with ESB management and contacts are ongoing within union circles. The Government will bring forward a memorandum on the various aspects of the transfer of the transmission assets. The legislation and financial arrangements will also be presented to the Government in the coming months. The Minister and the Department will continue to liaise on the matter with all the relevant parties. The Minister met the group of unions and will continue to liaise with ESB management and the CER. The claim that the transfer of transmission assets will weaken the ESB commercially is not factual. The transfer of assets will be accompanied by the transfer of liabilities and entail the movement of a small number of staff, which will help the ESB.
In some ways I wish the Deputy was right about the recent disputes. Unfortunately, some of them are so like long playing records that they would not work on the modern technology. The bus dispute has been ongoing for ages; the ESB dispute has been ongoing for several years, while, as the Deputy said, the Aer Lingus dispute has played out three or four times. The rule the trade union movement fought for in 1913 and has stood by since, as the Deputy will be aware, is that when an independent body makes a decision on an increase, the Government of the day should pay it.