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Dáil Éireann debate -
Thursday, 9 Dec 1937

Vol. 69 No. 13

Ceisteanna—Questions. Oral Answers. - Industrial Alcohol Manufacture.

asked the Minister for Industry and Commerce whether he has received any estimate of the cost of manufacturing industrial alcohol out of potatoes in Saorstát Eireann submitted by the expert firm advising him; and, if so, what is it.

The advice tendered by the experts in respect of the cost of manufacturing industrial alcohol in this country took the form, as was necessary in the circumstances, of a formula covering the quantities of potatoes, barley, coal, etc., required for the production of a certain quantity of industrial alcohol. No useful purpose would be served at this stage of carrying out the experimental working of these distilleries by publishing this formula. As I intimated in my answer to a similar question put by the Deputy last week, it is too early to make a definite statement as to the probable cost of industrial alcohol per gallon in the conditions of this country. As soon as practicable, a firm indication of the cost involved will be given.

Are we to understand that the Government have embarked on the production of industrial alcohol without any idea in their heads of what the cost of the alcohol is going to be when it is produced?

The Government embarked on the production of industrial alcohol as an experiment to find out what the cost of production would be.

Not caring and not knowing what the cost is going to be, they have erected three separate factories?

Five factories.

Five factories. And they call that an experiment! Is the Minister of opinion that when he comes to Parliament to ask for money to carry on a certain industry, he is entitled to demand that money without telling us his personal opinion, after he has considered the experts' advice, of what the ultimate cost of the industrial alcohol is going to be?

I can only refer the Deputy to the discussion that took place when the appropriate legislation was being enacted.

Mr. Morrissey

Has the Minister any reason to believe that his original estimate of 3/6 per gallon requires alteration?

I shall tell you this time 12 months when we shall have been a year working.

Are we to understand that part of the experiment to which the Minister refers was to see if farmers could grow potatoes at £1 10s. or £2 per ton?

That was part of it.

asked the Minister for Industry and Commerce if he will state what are the liabilities accepted by the Government under the agreements made by them with the expert firm advising them in regard to the industrial alcohol factories in Saorstát Eireann, and whether there are any other liabilities in respect of the industrial alcohol industry accepted by the Government outside those contained in the above mentioned agreements; and, if so, what are they.

The liabilities in connection with the technical services referred to in the Deputy's question are £16,500, plus a royalty on production of pure alcohol calculated at the rate of 2d. per gallon during the period ending 31st August of the year following that in which the five factories have started to work, 1½d. a gallon during the ensuing year, and 1d. per gallon during the two succeeding years, subject to a minimum aggregate payment of £15,125 in respect of royalties.

I have already given the Deputy, in reply to a question which he addressed to me on the 2nd instant, particulars of the cost of using the patented process adopted in the factories.

These are the only liabilities incurred in respect of the undertaking apart from the cost of sites, buildings, plant, sewerage, and the normal expenses associated with the conduct of a commercial enterprise.

On a previous occasion, the Minister informed me that he had bought outright the rights of the Melle process for a sum of £15,000. In addition to that sum of £15,000, are we to pay a royalty to the owners of this process on every gallon of industrial alcohol produced?

I made no statement to the Deputy at any time. The firm in relation to which I am now giving information to the Deputy has nothing to do with the ownership of the Melle process.

Am I to understand that, in addition to what we paid for the Melle process, we have undertaken to pay this firm a royalty on every gallon of industrial alcohol produced in our factories?

For a limited period.

Would it be in order to inquire if the Minister was temporarily out of his mind when he made this agreement?

Then I do not ask the question.

It seems to me that the question has been asked.

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