I move:—
That the Cork Gas Order, 1948, proposed to be made by the Minister for Industry and Commerce, and laid in draft before Dáil Éireann on the 24th day of November, 1948, under the sub-section 4 of Section 10, Gas Regulation Act, 1920, be approved, subject to the following modification:—
Deletion of Article 17.
The Cork Gas Consumers' Company has made an application to me under Section 10 of the Gas Regulation Act, 1920, and the Gas Regulations (Special Orders) Rules, 1940, for a special Order to effect certain modifications of the Cork Gas Act, 1868, and the Cork Gas Order, 1940, for the purpose of making better provision for the proper and efficient conduct of the company's undertaking. The principal object of the Order is to provide for increased borrowing powers to the extent of £150,000 and to authorise the creation, issue and redemption of debenture stock, the interest being limited to 4 per cent. Section 17 of the Cork Gas Act, 1868, authorised the issue of £150,000 capital, the issue of which was not completed until 1947. The immediate purpose for which the new capital is required is:—Carburetted water gas plant, £47,000 (estimated); high pressure main, £80,000 (estimated); improvements in steam production, £2,000 (estimated); mechanical dumpers and shovels, £4,000 (estimated); total £133,000.
The Cork Gas Act of 1868, which fixed the original capital at £150,000 and limited the rate of interest of debenture stock to 5½ per cent. requires modification accordingly. It is proposed also to create a redemption fund from the profits of the company for the purpose of redeeming the loan, mortgage, debenture or debenture stock raised or created by the company.
Another proposal is to secure power to grant pensions, gratuities or allowances to employees of the company, and to create schemes allowing employees to participate in the profits of the company as part of the terms of remuneration. Power is also sought to improve the internal management in the closing of transfer books; appointment of proxies and the remuneration of the secretary and auditors; the laying of pipes for ancillary purposes; the provision of antifluctuators for use with gas engines, and the cutting off of gas and protection of the company's property from seizure. It is necessary to repeal Section 27 of the Cork Gas Act, 1868, which formerly provided for the creation and issue of stock, and Section 57 of the same Act, which empowered the company to cut off gas; and Articles 4, 5, 6, and 21 of the proposed Order replace the repealed provisions.
The Gas Regulations Act of 1920 altered the old and cumbersome procedure whereby statutory gas undertakings were obliged to secure their powers by way of Private Act or Provisional Order confirmed by a Special Act of Parliament, and provided instead that powers or additional powers could be secured by a Special Order approved by a Resolution of both Houses.
The procedure, as laid down in the Gas Regulation (Special Orders) Rules, 1940, requires that the draft Order be prepared by the Gas undertaking, and that full publicity of the intention to apply for the Order, and of the contents of the draft, be given by notices in Iris Oifigiuil and local newspapers. Notification must also be given to the State and to private interests involved. One month is given for the lodging of objections; the subsequent stages being dealt with in accordance with the Gas Regulation Act, 1920.
If there are objections, an inquiry may be held and after considering the report of the person who held the inquiry the Minister may modify the draft before submission to the Oireachtas or he may decline to submit the draft. As the representations from objectors have been disposed of by agreement, no inquiry is necessary in this instance.
It will be observed that the draft Order, as now before the House, contains Article 17, whereby the company applied for powers to make a minimum charge of 10/- per quarter for gas supplied. Shortly, the company's case was that as they were required by law to supply gas on demand, a minimum charge of 10/- per quarter would be reasonable. I felt, however, in view of all the circumstances, that I could not recommend the grant of powers which might possibly result in hardship for consumers from the lowest income groups. The company subsequently agreed to the omission of Article 17 from the proposed Order. Subject, therefore, to the deletion of Article 17, I submit the draft for approval of the Dáil. If both Houses approve, I can make the Order.