Electricity blackouts seem inevitable next week unless there is some compromise in the threatened ESB industrial action, according to Fine Gael's Public Enterprise spokesman, Mr Jim Higgins. He said the indications were of "major power cuts" during Easter week. SIPTU and the ESBOA are seeking a 28 per cent pay increase above the PPF.

Mr Higgins was speaking during a debate on the Electricity (Supply) (Amendment) Bill, which will permit the allocation of not more than 5 per cent of ESB stock to the staff, with the balance going to the Minister for Finance.

The Minister for Public Enterprise, Ms O'Rourke, who introduced the legislation and opened the debate, said the rejection by ESB network technicians of new work practices and outsourcing was a "severe setback". However, the management and unions were working intensively to achieve a turnaround in that situation.

Labour's Enterprise spokesman, Mr Emmet Stagg, said ESB staff had been promised a 5 per cent shareholding in 1994 in a cost and competitiveness review process. The long delay in giving a shareholding had an adverse effect on industrial relations within the ESB.

Mr Trevor Sargent (Green, Dublin North) said there had to be an attempt to deal with the demand for electricity, rather than simply serving it. "According to the Irish Energy Centre, we could save £75 million a year if even current housing stock were effectively insulated," he said.