One major company decided against locating in Cork because the electricity infrastructure was insufficient, the Oireachtas Joint Committee on Public Enterprise and Transport was told yesterday.

Mr Ted Dalton, managing director of the Irish electricity section of ESB, said it was not in a position to disclose the name of the company. "Industries will question the uncertainty of supply. That is a fact," said Mr Dalton.

The committee heard the standard of supply in Cork did not meet international requirements and that the ESB had to outline facts in a truthful manner to companies planning to locate in Ireland.

"Otherwise it is misleading to the client and damaging to the country's image," said Mr Dalton.

The ESB's plans to build several overhead pylons linking its two power stations in Cork Harbour to each other and to its network have been the subject of much controversy and have been held up by protests.

In January, the ESB began a High Court challenge of a decision by Cork County Council to revoke planning permission for the pylons.