Gas pipeline will increase electricity costs to consumers

Assembly member Seamus Close has branded the proposed gas pipeline as unaffordable luxury for the taxpayer.

Mr Close a member of the Assembly's Public Accounts Committee (PAC) was responding to the Minister of Finance and Personnel’s open letter to him on the proposed provision of a North/South and East/West Pipeline.

Mr Close said: “This is an issue which has greatly concerned me. When I previously stated during the PAC debate in January that the introduction of the gas pipelines would lead to an increase in electricity costs to the consumer, it was suggested that my fears were unwarranted.

"However, in the subsequent open letter from the Minister of Finance and Personnel, he has confirmed that the introduction of the pipelines would increase the cost of electricity by 0.6 per cent to domestic and 1.4 per cent to commercial and industrial users.”

Mr Close said that he was further concerned that over the lifetime of the project, the Gas Pipeline would cost the taxpayer approximately £72.5million.

He concluded: “I have read the Minister’s response carefully and I do recognise that the pipeline project would lead to greater access to a cleaner fuel together with the long term benefits of inter-connection and diversity of fuel mix.

“However the key message emerging from his letter is that the economic appraisal on the pipelines could not justify the project in terms of value for money. At a time when there are so many other major pressures on the public purse in areas such as education and health, I can only conclude that the gas pipeline project is a luxury which the taxpayer cannot afford.”

In December last year Questar pulled out of the project, but in February a licence was granted for the project which is due for completion in 2007.

(SP)