Vol. 507 No. 2
16 Mr. Ferris asked the Minister for Public Enterprise her views on whether Bord Gáis Éireann should be allowed to diversify; if it has been told to adhere to the Gas Act, 1976; and if she will make a statement on the matter. [16473/99]
The gas sector is being liberalised pursuant to both domestic and EU legislation. The new competition is expected to affect Bord Gáis Éireann's profit earning capacity in the next few years. In addition, BGE is having to use increasing amounts of natural gas at world market prices with the decline of the Kinsale Head gas field to meet the growing demand for gas. Like any competitive organisation it needs to find new ways of replacing this profit loss through diversification of its activities.
My Department's strategy statement states that Bord Gáis Éireann, should continue to grow and develop its business and to exploit its assets, where profitable, making adequate returns on capital employed and to exploit new business opportunities where they are profitable and linked to BGE's core business.
Any specific proposals to diversify by BGE require my approval and that of the Minister for Finance. In that connection, I would have to be satisfied that BGE have the necessary powers and that the project appeared to be commercially sound and would add to the value of the company.
