§ Mr. Nigel EvansTo ask the President of the Board of Trade what progress has been made by Her Majesty's Government in negotiating a treaty to cover the intended gas interconnector linking Scotland with Ireland.
§ Mr. HeseltineI am pleased to inform the House that my right hon. Friend the Foreign Secretary has today signed in Dublin a treaty with the Irish Government to cover the gas interconnector. The treaty will ensure the effective regulation of a pipeline which crosses international boundaries. It will set out matters of jurisdiction and provide for consultation and the exchange of information between the two Governments including a forum in which issues over the pipeline can be discussed. It will also provide for guaranteed access for links to Northern Ireland and the Isle of Man.
This is good news for both our countries. By facilitating a link in the European infrastructure, the treaty takes us further down the road to a single market in energy. The United Kingdom has been in the forefront of liberalising energy markets and I shall continue to press hard in that direction. This is also good news for Northern Ireland and the Isle of Man since the treaty provides specific guarantees on access which they can take up.
Construction of the pipeline has also brought more immediate benefit to the United Kingdom with contracts worth over £100 million being awarded to United Kingdom firms. The existence of an interconnector has the potential to create trading opportunities from which both countries can benefit. We have already seen National Power stepping in to strike an innovative deal to provide standby supplies to the Republic over the next five years.
In due course, the treaty will be laid before the House. But in the meantime I will place a copy of the treaty in the Library.