Press
Release December 13th 2013:
Senator Ned O'Sullivan attacks the Judiciary as he
describes High Court judge's decision against Shannon LNG as "Appalling" .
It is disgraceful and shocking that a member of
the Seanad, Ned O'Sullivan, would attack the judiciary when he
described, in the Seanad, Judge Cooke's decision on the Shannon LNG
project in the High Court as "APPALLING". Where is the separation of
powers? The Energy Regulator is INDEPENDENT. The judiciary is
INDEPENDENT. Mr. O'Sullivan is advancing the interests of a private
company not the public interest. We recall quite clearly that Mr. Ned
O'Sullivan was a director of Shannon & Foynes Port company when, as
a Kerry County Councillor, he voted to rezone the land for the proposed
Shannon LNG project without declaring his interest as a director of a
company that would benefit enormously from the rezoning. Illegal
lobbying, interference or peddling in influence with the Regulator or
Judiciary for the benefit of a company registered in the tax haven of
the Cayman Islands should not be tolerated by the other members of the
legislature. Or does anyone understand any of the basic checks and
balances that exist in our system and which are there to prevent the
democratic process from being undermined? Senator Ned O'Sullivan
has undermined the democratic process in attacking the judiciary on the
floor of the Seanad on December 12th 2013.
-Ends-
Notes to Editor
Transcript of Seanad Debate from 12 December 2013:
http://www.kildarestreet.com/sendebates/?gid=2013-12-12a.33
Safety Before LNG.
Press
Release December 11th 2013:
High Court ruling against Shannon LNG Saves the
Irish People One
Billion Euros and highlights Cabinet Minister's attack on the
Democratic process.
Decision entirely vindicates position of Shannon LNG opponents as the
truth comes out in the end.
On behalf of the local community, we
thank the High Court for upholding the logical and evidence-base
decision of the Energy Regulator which did not pander to the vested
interests supporting the predatorial Shannon LNG project and for
dismissing the Shannon LNG challenge as "unfounded".
If the LNG
project does still go ahead in the end, putting lives, the environment
and the
strategic industrial development of the entire Shannon estuary section
of Ireland's Western Arc at risk, it is
satisfying to know that we will have at least saved the Irish people a
billion
Euros in the process because we were the first to raise this issue
publicly with the Regulator in 2008.
In a
David-and-Goliath battle and to the sheer delight of many locals
the
outlawing of a price-distortion loophole will likely stop
the proposed
Shannon LNG project in its tracks because the company behind it will no
longer have
a monopoly advantage from a weakness in the Irish gas pricing system.
Bord Gais
Networks, the ESRI, ESB Energy International, the National Energy
Association
of Ireland (NEAI) and even the owners of the local power station at
Tarbert
(Endesa), to name but a few, all supported the Regulator's decision.
The ESB EI
even went so far as to accuse new entrants (like Shannon LNG and Shell)
of
"free-riding" on the services that the gas interconnector provides.
It would seem that the local pro-LNG media and narrowly-focussed local
campaigning lobby will, in all probability, never be able to grasp the
full
consequences of their short-term mind set.
The High Court
ruling has also highlighted the fact that Eight Kerry politicians (
TDs,Senators,an MEP and a sitting Cabinet Minister) attacked the
democratic process by encouraging illegal interference with the
decision of the independent energy regulator for a company registered
in
the tax-haven of the Cayman Islands in a deal which would have cost the
Irish people one Billion
Euros. The truth comes out in the end. The
Energy Minister, Mr. Pat Rabbitte, had to remind them openly in the
D�il that he was being asked to "break the law", an act he
refused to do.
We were told
from the outset of our campaign to "follow the money". We
learned that lip service is still only paid to what were our main
concerns of
safety, the environment and to strategic long-term planning of the
entire
Western Arc of the country. All of these have a monetary value but they
are
difficult to quantify and are easily fudged over by well-financed
lobbyists. As an old Irish saying goes:
"what's the price of the singing bird?". However, when decisions do
not make sense even on a very narrow financial criteria such as a rise
of one Billion Euros in
energy prices, then the whole LNG plan is exposed for what it really is
- a FRAUD.
It is with no little irony that we
note that
Shannon LNG, a private non-state company, was
able to benefit from the power of the Irish State to get compulsory
purchase orders to build
a gas pipeline over the private property of Irish people against their
will (to their detriment and without any share in future profits) but
then complains of foul play when the Irish Energy Regulator rules that
they
must contribute to the Irish gas network, just like everyone else.
Paddy
Power
Shannon LNG Managing director Paddy Power was
already reported as
saying that the "tariff
could
cost the company up to €75 million annually". This acceptance of
a loss of a dominant market position
represents a saving to
the Irish consumer of up to €1
billion over
13 years. This does not even take into account any of the countless
millions in losses that would occur from sterilisation of the
Shannon Estuary for further port expansion due to shipping exclusion
zones that would have to be put in place if the Shannon LNG project
goes ahead. No LNG marine Risk Assessment has yet been conducted on the
Shannon Estuary either to calculate the scale of sterilisation of the
estuary that would occur.
Gordon
Shearer gone
Meanwhile,
following the decision by
the CER against Shannon LNG's interests, Gordon Shearer, Senior Vice
president
of Hess Corporation at the time, who has admitted on record that the
"tariff seriously compromises the
project", has resigned as director
of Shannon LNG to be replaced by New York-based attorney Nicholas
Brountas. Brountas
is also director of what was another failed LNG terminal proposal by
Hess at
Crown Landing in New Jersey. Mr Shearer, who was one of the main Hess
advocates
behind Hess LNG terminal projects in the USA and worldwide- all of
which have
so far failed - is no longer listed on the Hess Corporation website as
holding
any corporate position in the company.
We believe
that Gordon Shearer's
position had already become untenable because of his poor judgement on
the Fall
River LNG project in Massachusetts and because we felt he had tarnished
the
reputation of the LNG industry in general due to his total public
disregard for
the safety of people. We recall his laughter at an oral hearing into
the
Shannon LNG project in 2008 when affirming that he had indeed made the
claim that
an LNG accident would be the 'largest Roman candle in the world'.
Shannon LNG's
accounts up to December
2012 show that Shannon LNG have spent €51 million on the project.
However, there
is no disclosure of directors' remuneration so it cannot be ascertained
how
much Gordon Shearer was paid before he resigned as director of Shannon
LNG.
From that €51 million we note that not one sod of earth has yet been
turned on
the site and an IPPC licence is still required from the EPA before any
construction can begin. It would be interesting to know what or who
they have
spent the €51 million on to date.
Evidence-based
decision-making
The
widely-expected result has been
warmly welcomed as a victory forvidence-based
decision making , a process which does not pander to vested interests.
Our group had
initially raised the
interconnector pricing issue directly
and publicly with the Regulator over 5 years ago in October 2008 after
it was
first reported by Sunday Independent journalist Maeve Sheehan on August
of that
same year. The evidence-based decision by the Regulator followed a long
decision-making process which was transparent, open, inclusive of all
stakeholders, clearly defined and which had a clearly expressed
commitment of
reaching a decision supporting the common good. Little
did we realise though, that the
Regulator would face a formidable foe in the guise of a concerted
lobbying
campaign of blatant political interference by Kerry-based politicians, whose tentacles reached as far as the Government
Cabinet
Table.
Attack
on the
Democratic Process
As the
Regulator's decision looked
more and more likely to go against the interests of Shannon LNG,
heavily-lobbied
Kerry politicians of all shades started to play dirty.
They began
openly campaigning for the
Minister for Energy to illegally interfere with the independent
Regulator's
decision-making process.
For us, this
was the most frightening
moment, to realise that many of Kerry's politicians, in a frenzy of mob
rule, could
decide to commit a breach of the public trust placed on them by
undermining the
democratic process and by ignoring all the checks and balances that
were in
place in the system for a reason.
On February 20th 2012
Shannon LNG Managing director Paddy Power told
Kerry County Council that “Shannon Lng
will walk away from its planned €1bn
investment in the Ballylongford landbank unless the Commission for
Energy
Regulation (CER) agrees to cut tariffs that could cost the gas company
€75
million a year.”
Within days,
six local Kerry deputies and senators
- Arthur Spring (Labour), Brendan Griffin (Fine Gael), Martin Ferris
(Sinn
Fein), Tom Fleming (Independent), Ned O'Sullivan (Fianna F�il) and Tom
Sheahan
(Fine Gael) - had all spoken in the D�il
and Seanad calling on the Minister for Energy Pat Rabbitte (Labour) to
intervene
with the Regulator's decision making process.
Kerry MEP Se�n
Kelly of Fine Gael then
threatened to challenge the CER decision at a European level.
The worst
direct threats to the
Regulator of all came from a sitting member of Cabinet, Jimmy Deenihan
(Fine
Gael), who stated to the Limerick Leader (see full article below) on
May 21st 2011 “if
we lose this project, there will be a major issue over the role of
the regulator and how it was established”
Eventually Minister Pat
Rabbitte would bring the politicians to their
senses when he openly told the D�il that
“Deputy
Griffin is asking me to break the law. I cannot do that”.
One reason
we think they acted so disgracefully was because members of all the
main
parties did the same thing in a mob-like frenzy and their behaviour was
not challenged in
any meaningful way by the local media. We are outraged that
senior Kerry
politicians in their attempts to interfere with the office
of the Independent Energy Regulator have brought the integrity of
their office and the Oireachtas into
serious disrepute. They have advanced the interests of a private
company, not the public interest. They have behaved in a manner which
is not consistent with their roles as public representatives and
legislators. The financial
impacts of the
final CER decision will be enormous for years to come on gas consumers.
It was and is crucial, to protect the
independence of the Energy Regulator and to send a strong signal to
members of
D�il �ireann that any illegal interference, illegal lobbying or
peddling in
influence with the CER will not be tolerated
Grid
Access,
the next battle
We also now
put Hess and Shannon LNG
on notice that there will be another long battle over queue jumping for
grid
access with their proposed power station next to their proposed LNG
Terminal
and that we will make sure that the grid-access issue is also
highlighted,
thoroughly examined using an evidence-based decision making process and
that
all Irish people are treated fairly.
-Ends-
Notes to the Editor:
1. Please read our previous press releases for
more
information.
2.
Limerick
Leader-May 21st 2011:
THERE are major fears over the future of a €600m gas - line project
which could
provide more than 450 jobs in Tarbert.
Although
the Commission for Energy Regulation could rule on Shannon LNG’s plans
for a
liquefied natural gas terminal on the Shannon Estuary as early as
September, a
requirement to pay for gas Interconnectors the firm may not even use
could see
the company quitting the area. Sources close to Shannon LNG’s parent
company
Hess have indicated they may cut their losses here, and proceed with
similar
projects in the United Kingdom, if more problems are thrown in their
way. The
company wants to import frozen natural gas, mainly from the Middle
East, and
then process it in West Limerick/North Kerry. The pioneering technology
could
see the company supply 45 per cent of Ireland’s gas needs, with the
pipe
connected to the national grid. But since plans for the facility were
unveiled
in 2006, the project has been beset with delays - and in that time
Shannon LNG
has invested€50m in planning and preparation with no return.
Now, the
company is believed to be considering cutting its losses here, with
Arts
Minister and Local TD Jimmy Deenihan set to hold crunch talks next week
with
the Commission for Energy Regulation. Taoiseach Enda Kenny is also
acutely
aware of the importance of this project, and will meet company
representatives
next month
.
The
scheme is currently before the Commission for Energy Regulation. One of
the
major sticking points is whether Shannon LNG has to help fund two
interconnnectors linking the estuary to Scotland.
The€50m
annual cost of the pipeline’s operation is currently footed by its
users Bord
Gais, and Airtricity. Hess LNG does not believe it should have to pay
towards
Interconnectors it will not even be using.
Representatives
of the firm have already met the regulator to state their case, and are
in the
process of preparing an official submission.
This
could prove to be the one thing which could see the massive investment
lost.
Minister
Deenihan says if Tarbert misses out on the investment - which will
create 400
jobs over an 18 month construction phase and then another 100 permanent
jobs -
the way the planning process in this country is going to require
examining. To
get to a stage where it can begin operation, Shannon LNG will have had
to go
through three planning processes: basic planning permission, a
foreshore
licence, and the approval of the energy regulator.
“If we
lose this project, there
will be a major issue over the role of the regulator and how it was
established. You cannot lose a project with this kind of investment, in
an area
which has not seen investment for years. It just does not make sense.
This is
the only real tangible project I have seen for the Shannon Estuary
since I came
into politics nearly eight years ago No other company has spent €50m
advancing
their project and having a whole team working on it for the last five
years,”
Minister Deenihan told the
Leader.
Asked if
he thinks Shannon LNG should pay for Interconnectors which it will not
even be
using, he said: “I don’t think they should.” County Limerick TD Patrick
O’Donovan said he thinks it is “unfair” the issue over whether Hess
partly pays
for the Interconnectors has been brought up now.
He called
on the government to resist any instruction by the regulator to insist
LNG pays
for the Interconnectors. However, the regulator has to be seen to
operate
independently from political influence.
“I don’t
think it is fair issues have been brought to the table that were not
there
while this project was being designed. It is unfair on the basis of the
money
which has been spent on the project so far and the commitment given by
the
company. If the agencies of the state are prepared to move the
goalposts, I
think it would be very unfair, and its something the government has to
resist,
” Deputy O’ Donovan said.
He said
the Shannon LNG project is the biggest development in the West since
the advent
of Aughinish Alumina over 30 years ago: “We are a small peripheral
country at
the end of a pipe which can be turned off at the drop of a hat. It is
far too
important to be tinkered around at the edges with. It needs to be
delivered,
and delivered in as short a time frame as possible.”
Deputy
Dan Neville added: “It’s amazing the way our system works. The common
good
seems to take second place to procedures and bureaucracy. I can feel
this
frustration myself. Having thought things were going to plan, it’s now
very
frustrating to see this is not the case.”
A spokesperson for the Commission for Energy Regulation insisted they
welcomed
the LNG project, and stressed a final decision is due in September.
“CER will
seek to balance the interests of gas customers while at the same time,
keeping
Ireland as an attractive location for gas producers. It has to be
considered
whether these companies [LNG] will use the Interconnectors in the
future or if
the other suppliers will incur extra costs by paying for the
Interconnectors, ”
the spokesperson said.
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