Skip to main content
Normal View

Dáil Éireann debate -
Wednesday, 29 May 1963

Vol. 203 No. 3

Electricity (Supply) (Amendment) Bill, 1963—Second Stage (Resumed).

Question again proposed: That the Bill be now read a Second Time.

When speaking on this Bill last night, I reminded the Minister that it was only last August that he had been to the House with a similar Bill in relation to the capital requirements of the ESB and that the fact that he was coming back within such a short time showed, perhaps, in one respect that there was some degree lacking in the planning that might have been done at that time. On the other hand, however, it does show that what was described some 35 years ago by the Tánaiste and Minister for Health as a baby elephant was, in fact, a thriving baby and that piece of elephantine stupidity by Deputy MacEntee, as he then was, is now characterised for what it was worth.

The Minister last night, in his introductory speech, made reference to rural electrification, though in fact, as he said himself, rural electrification was not covered by the terms of this Bill. The position in relation to rural electrification, as I was developing last night, is that there are two methods of dealing with the contributions necessary to ensure that those people in the less populated areas are able to obtain adequate supply or, indeed, any supply of electric current. One approach is that it is better for the taxpayers to meet the additional cost and, indeed, that is the method Fianna Fáil have put into operation. The other approach is that in relation to the widespread use of electricity, it is just as fair as imposing an additional charge on the taxpayers to impose an additional charge on the other users to make certain that their less fortunate brethren will be able to get supply. We chose the latter approach. Whether one chooses one approach or the other from the point of view of overall financing of the Board, it does not in any way affect, and never did affect, the position as regards the method by which the Electricity Supply Board would make the services available to the consumer. The ultimate cost to the consumer in a rural area would remain the same, regardless of whether one method of financing the Board itself or the other was adopted.

The Taoiseach when on this side of the House promised faithfully that if ever he moved back on to the Government side, he would abolish the special service charges and make certain that there were no special service charges in operation. Of course, when he got into power, he found that that was an entirely rash promise, that it was a promise that nobody could possibly hope to fulfil and, instead of being man enough to say that he had been mistaken, he tried to cover it up and gave the present Minister for Transport and Power instructions on a recent occasion to endeavour to cover it up also. The fact, of course, is that it was an irresponsible statement, made solely for the purpose of a political attack on the then Government, as everybody knew at the time. It was just as irresponsible as was the attack made on Deputy Norton as Minister for Industry and Commerce when he said that it was better in 1956-57 to taper off slightly and not to wind up all the rural electrification connections in that particular year with consequent hardship for the teams of men and staff that were involved.

Looking back over it now, it is perfectly clear that the decision he took at that time was correct. In fact, in the year ended 31st March, 1956, 34,257 consumers were connected. In the year for which he was attacked, 34,627 rural consumers were connected, more, in fact, than in the previous year, and since then the number has been tapering down, and correctly tapering down, to 17,000 in 1958, 15,000 in 1959 and 14,000 in 1960. As I say, looking back on the records as they are there now, as apart from estimates, it is perfectly clear that the decision then taken by Deputy Norton and for which he was so bitterly attacked by the Fianna Fáil Party was absolutely the right decision.

Every year I ask the Minister for certain statistics in relation to the cost of electricity generation and I confess frankly that they are statistics that give me immense pleasure. It is sometimes difficult to compare the cost of electricity generated and produced at one station with the cost at another station because one must take into account the weather and the station at which the load is taken. It is a truism that the worse the weather for our harvest, the better the weather for electricity production; the heavier the rainfall, the easier it is to produce electricity from hydro-electric schemes. It has been pretty well established now that the basis of the policy of the Electricity Supply Board is to provide that the hydro-electric stations will carry as much of the load as their water supply will enable them to carry. It is, therefore, clear that in a very wet year they are able to take up more of the load than they would be able to take up in a dry year. Apart from that, in relation to other stations which generate electricity by heat, there is always the question whether these particular stations are utilised for main pay load or only thrown in at peak periods.

In the statistics given to me from time to time over the years, an effort has always been made to compare the cost on a load factor parity basis. When one examines these costs, taking the two years 1960-61 and 1961-62, which are set out in the Official Report of 29th March, 1962, and 28th February, 1963, respectively, certain peculiarities emerge, peculiarities about which I should like some little explanation from the Minister. I know, for example, that the capacity of the Electricity Supply Board generating plant in both those years was practically the same at 723.5 megawatts. In the second year, output was a little more than in the first year, but the general implication is that the plant available for 1960-61 was in fact more than was required. I should like the Minister to tell me, first of all, whether in fact the plant that was available for 1961-62—I have no figures for 1962-63; whether or not the Minister has, I do not know—was fully extended during the whole of that year. I say "the whole of that year" but I do not mean by that phrase to include a period of extraordinary weather, weather such as we had earlier this year. Indeed, in respect of that period, I pay my tribute on behalf of Fine Gael to the loyalty and devotion to duty of the ESB staffs, particularly the outdoor staff who, to my own knowledge, in the hilly areas of east Kildare and west Wicklow, as well as in other parts of the country, did more than men were entitled to be expected to do to keep current going for the consumers in the areas.

I find also in considering these figures that the increase in capital employed in 1961-62 was only some £6 million. Yet, it would seem from the increase I spoke of earlier from last August, that the increase in this current year must be very much higher. Is that because there has been a very high upsurge in the cost of construction, generation and distribution? Or is it because the Minister is thinking now more in terms of commitment than in terms of actual cost? I know the Minister did indicate in his statement that he was considering commitment as well as cost but I was not perfectly clear how he was correlating the two. Those of us who remember the year 1960-61 and who compare it with 1961-62 are rather surprised to see that the 1961-62 year was so very much cheaper for hydro-electric stations.

While there was some deterioration in the weather in that year, to those of us who do not keep weather records, it would seem that the difference is incommensurate with the climatic differences and I should like the Minister to give us some indication of the cause. It may be that, in relation to some of the problems I am posing at this stage, he will not be able to answer. If that is so, if he is not, shall I say, on top of his job to that extent, I will forgive him and allow him to wait until the Estimate comes along to give me the information.

If the Minister examines the position for 1961-62, he will see that the Shannon, that scheme derided by the elephantine stupidity of a colleague of his, produced far the cheapest current per unit at approximately one-third of a penny. The Erne was the next cheapest. The Liffey cost about one and one-fifth of a penny per unit. The Lee cost about one penny and the Clady something under one penny. I find it difficult to understand why the Clady should generate at a substantially lower cost than the Liffey or the Lee and I should be grateful for some explanation of that before the money for this new generation is given to the Minister in this Bill.

I remember the way in which certain people were violently attacked on the subject of sod peat, violently attacked for their criticisms of wet sod peat. Remember, it was then handwon peat and not even macerated sod peat. It is interesting to look at the figures. We find that the cost of generation for the handwon sod peat stations is almost 2d per unit compared with one-third of a penny per unit in Shannon. When we come to macerated peat at Portarlington and Allenwood, the cost is about one and one-fifth of a penny. Lanesboro is a little less. It is only when we come down to milled peat, a comparatively new invention for electricity generation, long after the discussions to which I have referred, that we are anywhere near comparable figures. Indeed, the milled peat figure for both Ferbane and Rhode are over the cost of North Wall, Marina and Ringsend. The native coal figure for Arigna is able to bear comparison with the milled peat figure and, as well as that, to bear comparison, though not as cheap, with Marina and Ringsend.

How the generation of electricity by oil is affected by the refinery is a matter upon which I am not competent to speak, but I should like to know; I refer to the costing basis on which these figures are computed by reference to the cost of turf, be it sod turf, macerated turf, or milled peat, provided by Bord na Móna, on the one hand, and the Electricity Supply Board, on the other. Who fixes the price? Is the price fixed by reference to the rates at which the Electricity Supply Board would be able to get their supplies of hard fuel elsewhere or is it fixed by reference to the cost to Bord na Móna of producing this fuel? In other words is it a case of putting the cart before the horse I have never been able to get a clear picture in that respect and it is only fair, before the Minister asks us to vote the money for this further generation and other general purposes in this Bill, that he should make the matter clear for us beyond all question.

Is it clear that all possibilities in relation to the erection of further inland hydro-electric stations have been completely and absolutely exhausted. It is clear that the possibility of large hydro-electric stations has been exhausted but coming on to the smaller ones, is that clear beyond question? Has there been any exhaustive examination of the possibilities of generating by the somewhat high and speedy rush of the tide in certain long inlets or bays? In certain of the larger bays with narrow inlets, the tide does seem to come in and out at such speed that it might be possible to generate electricity, as people at one stage, before the advent of nuclear power, believed on the other side of the water that the Bristol Channel would be able to provide a source of supply.

The Minister, might I suggest, was much too vague in his opening remarks about the possibilities of nuclear generation. We should get in the House some indication from him of the progress that has been made in other countries and of the possibility of bringing such progress to bear on our generating problems here and the likely cost involved in such a nuclear generation. I am sure there must have been a clear examination of the minimum size of nuclear generating stations that could be erected. I am sure that the examination in other countries and here by the ESB must have made it clear what would be the smallest possible unit that would have any comparative cost success.

Sooner or later, it is inevitable that nuclear power will be one of the things upon which mankind will depend not merely for the uses to which it is now put but for peaceful development as a warlike deterrent. I use the words "warlike deterrent" quite deliberately, not "warlike uses". So far as we are concerned, it is in the civil harnessing of nuclear power to development here that we are likely to be able to use it ourselves and that we hope to be able to use it ourselves. Something more than a vague statement by the Minister that a watch is being kept on the possibilities is very desirable before this £25 million is made available to the ESB.

I also wish to pay tribute to the staff of the ESB who not alone during the period of very bad weather early this year kept the service in operation and carried out immediate repairs but who right through the year every year see to it that there is the least possible interruption of current. We are very glad to know that no matter in how remote a part of the country a breakdown may occur, before many hours are over, let it be day or night, the repairs are carried out. We are very pleased that the efficiency of the ESB and their employees enables us to say that.

I would ask the Minister to tell me something which has been troubling me, a number of my colleagues and a large number of people in the country. Is there any obligation on the ESB to guarantee a certain voltage? Very many people have complained—and I find it happening in my own home— that on occasions when all the people in an area are cooking at the one time or for some such reason, the strength of the current seems to drop considerably. Although where I live it happens only during peak periods, I have been told that in many areas there is a drop for very long periods and the current is very much lower than it was when the electricity was originally installed in some of the houses in those areas. There may be an explanation for that but I should like to know whether the ESB are entitled to charge for the type of current they are supplying. If somebody is entitled to get a certain voltage, surely that voltage should be guaranteed.

Reference has been made to rural electrification and there is one aspect to which I should like to draw the Minister's attention. Over the years, there has been considerable objection by certain people to the special service charge but eventually those people have decided in many areas to take the current at the charge laid down. I have experience of a very large number of potential consumers who have agreed to take the current; they were told to have the houses wired and that the ESB would give them a connection. Yet we find weeks and months passing and the people who started wiring the houses in the early stages have got no connection. Their neighbours get discouraged and gradually things are back where they started except that some people have spent a considerable amount of money preparing for the current which now they may not get as their neighbours will not prepare for it because of the long delay.

It may be said there is a shortage of staff but about 12 months ago, a considerable number of men who were at least semi-skilled and who had been doing the work for as long as ten or 11 years were let go by the ESB in a number of areas and told there was no further work for them. To anybody aware of this, it is hard to explain that the ESB are short of staff, especially if the people concerned are walking around or signing at the exchange or working at some other job which is possibly part-time or casual. Could something be done to expedite connections when people decide to take current?

A matter which has been debated here before—I shall only touch on it briefly—is the position of people living close to areas already serviced. People have a wrong idea about this and so have the ESB, though I do not understand why. It seems ridiculous that people, who live in an area where there is electricity all around, should be required to pay a very substantial special service charge for a connection to their homes and often to their farms especially when they would be prepared to use a considerable amount of electricity. The ESB, I know, have a habit of estimating the possible use of current as likely to be a few lights and perhaps some light electrical appliances. That is unfair when people are prepared to guarantee that they will use a considerable number of electrical farm implements such as milking machines and coolers. They should not be put in the position that they will not get a supply unless they pay a very high service charge. I asked the Minister to look into that before and I do so again now because if there was a reasonable approach, I think the difficulty might be got over.

Many people cannot agree that they should be required to pay meter rent, ground rent or whatever you wish to call it—some people have fancy names for it—during the summer months when they use little or no electricity. As an example, if the charge for the amount of electricity used by an old person is ? for two months and the meter rent is 15/6, you may say that is a small amount and does not matter but to an old age pensioner it does matter. Surely, some other system could be devised? The ESB might consider spreading a unit charge over everybody and abolishing meter rent entirely. While some people would have to pay more, people who do not have to use a lot of electricity would not have to pay for something they are not using.

Last year I raised the question of people who only use electricity in summer months when letting houses for seaside visitors and so on. I do not wish to dwell on it now but I think the change made last year was unfair to the people concerned. I discussed this with the Minister before but unless he is prepared to change his mind, I see little point in pursuing the matter any further.

I was interested in the previous speaker's figures of the cost of production per unit of electricity. We should remember that, apart from the fact that native fuel is being used to generate electricity, there is also a social value involved.

Certainly, but we want to get exact costs so that we can assess the social and the economic values.

I think it would be most unfair to say, as was stated, that there is a certain amount of subsidy being spent on a certain type of electricity because it is produced in a certain way—milled peat was the method referred to here and previously. We know that is true but the social value is great. There is the other point that unless we are able to use oil from Whitegate I would be entirely opposed to any system of generating electricity using imported fuel. It is far better to use native fuel. Then, even if there is another stoppage of fuel as happened before, we would still have a source of supply.

I hope that by the time the bogs are completely used up—that will hardly be in our lifetime—nuclear energy will be developed to the stage when it can be safely used. The Government would be foolish to spend a lot of money experimenting with nuclear energy at present. If there is money to be spent, it could be spent far better on the traditional methods of producing fuel and power. The money at present spent in areas where, first, there was little employment and, secondly, where bogs or land were very little used is well spent and the ESB and the Minister deserve every credit for continuing to use that kind of fuel for electricity generation.

I am not satisfied, although the experts seem to be satisfied, that all the rivers that can be used for generating electricity are at present in use. If the technical staff of the ESB were given the job of harnessing some of the other rivers, even though it might mean major drainage or deepening schemes, I believe they could do it and that fact should not be lost sight of by the ESB or the Minister.

If the ESB are to continue to give service, I hope they will try to give it to all who can possibly be reached because, while it has been said here that the people who are using the current are the people who are paying for it, the general taxpayer is paying a certain amount and that includes everybody in the country. In my constituency particularly, there is a feeling among those who live on the fringe of the developed areas that they are being neglected by the ESB and the Government because they either cannot get electricity that they badly need or, if they can, they are asked to pay an exorbitant amount for it.

I notice recently that the ESB have offered to give current in an area where previously the people felt the cost was too excessive. The ESB are now giving it and they have reduced the special charge to 1/- per two months. I do not know how this charge is assessed but it is paring it very fine when they include the 1/- which cannot amount to very much even over a long term of years. Although the people are delighted to get it with the extra 1/- per two months, if the ESB had said: "We are now able to give you current at the normal charge", that would have been appreciated by the people concerned.

When the ESB are connecting new houses or old houses in a built-up area, every effort should be made to ensure that unsightly poles are not put here, there and everywhere throughout a housing scheme. It may be said that is a matter for the planning authority. I know the ESB have the right and occasionally insist on putting poles where they think they should be put. It is a shame to see unsightly poles stuck higgledy piggledy all over a modern housing scheme or one of our many old-world villages, making into an eyesore something that previously had been a pleasure to look at.

I should like to join in paying a sincere tribute to the manner in which the ESB provided power and light during the recent very bad weather. We have passed through a winter which was probably the worst in 100 years. The engineering staff of the ESB, the workers and all associated with them did a splendid job in seeing there was the least possible inconvenience, particularly in the areas seriously affected by the storms and snow. I hope the Minister will convey to all concerned the appreciation of the general public for the work of the staff of the ESB. The manner in which they discharged their difficult duties in probably one of the worse winters on record should not be allowed to go without a word of appreciation in this House.

When the Minister for Transport and Power and other Ministers of the Government talk about the ESB, they seldom recall the speeches they made about it many years ago. I am glad they have reached the stage of appreciating the commonsense, intelligence and foresight of the first Cumann na nGaedheal Government and of Deputy McGilligan, who can be described as a pioneer of the ESB. The proposal to harness our rivers for the purpose of providing electric power was described at the time as a white elephant, a useless impracticable scheme in which the taxpayers' and the ratepayers' money was being wildly squandered. Now we see those who hurled those serious charges realising the great benefits that scheme brought to the country. We welcome the conversion of the Fianna Fáil Party in regard to the purposes for which the ESB was established.

I should like to register a protest in regard to rural electrification charges. Nobody knows better than the Board that in rural Ireland undertakings were given to the agricultural community and the labouring people that overhead charges would not be increased. It was on that understanding that a number of people connected and availed of rural electrification. As soon as they made a connection, they discovered the charges were substantially increased.

There was no undertaking.

It is most unfair to encourage people to avail of a service on the understanding that there would be no increase in charge and, as soon as they avail of it, either to increase the valuation or increase the overhead charges. The cost of rural electrification today is certainly very high, having regard to the limited income of agricultural workers and others in rural areas, particularly the small farmers who connected on the understanding that they would be provided with cheap light, fuel and power.

It is up to the Minister to formulate a scheme whereby cheap power and light will be provided for the poorer sections of our community living in cities and towns. In the case of old age pensioners, widows, and those in the low income group who find it difficult to pay their ESB bills, arrangements should be made in instances of hardship to provide them with cheap light and fuel.

I am glad of the way the ESB in recent years have used our bogs for the provision of electricity. The erection of power stations in areas where we have huge tracts of bog has entirely transformed the face of the country. I welcome the establishment of power stations in areas like Portarlington, Rhode, Shannonbridge, Ferbane and other places where the ESB are now providing a substantial amount of good employment. The engineering staff of the ESB should immediately set about further bog development in these areas where they have already erected power stations. This should now be quite possible following the visits abroad of study groups from the ESB. Further such development would enable the ESB to provide much greater employment and current at a cheaper rate. This development could take the form of the utilisation of many more bogs, particularly in Laois and Offaly where there is the most suitable bogland in Europe and where there is a highly skilled body of workers readily available.

I know the Minister does not interfere with the day to day administration of the ESB. It would not be proper if he did so, but I think it necessary he should endeavour to do something to reduce the number of electric poles now dotting the country. He could take his lead from the Post Office who have managed to put a considerable mileage of their cables underground. This is a matter of amenity which deserves the greatest consideration because at the moment many areas throughout the country are most unsightly with telegraph poles, ESB poles, road signs and now the new signs erected under the provisions of the Road Traffic Act imposing speed limits. As I said it should be possible for the ESB to take the lead given by the Post Office in this respect. Where future planning is in sight, the board should co-operate with local authorities so that cables could be laid underground in areas where new roads and footpaths are contemplated.

As far as progress in the generating of electricity, either from bogs or water is concerned, we are as far advanced as any country in the world and I should like now to pay a tribute to the board for their foresight and planning in this respect. There is one aspect, however, with which I must find fault, that is, in regard to the charges for electricity. We appreciate that the board have had to meet demands for increased wages and other expenses but the charges are still extraordinarily high, particularly where they affect the poorer people in rural areas. Whether by way of increased subsidy or otherwise, the Minister should induce the board to reduce these charges so that they will be within the capacity of people to pay.

Reverting to the possibility of the greater utilisation of our bogs in the near future, I should like to pay a tribute to the former Chairman, Mr. Browne, who did such excellent work over the years. The present Chairman is just as enthusiastic in the matter of bog development. Generally speaking, the board have done excellent service in helping to brighten up the life of rural Ireland, to make life there more attractive and to help alleviate some of the drudgery in the remote areas. I would ask the Minister, however, to expedite the electrification of the more remote areas, what I would call the pockets that have not been reached so far, districts it would not pay the ESB to develop. I can assure the Minister that if he comes to the House and asks us to vote money for the purpose of developing these pockets he will receive a great measure of support and goodwill. It is our duty to provide these services for the people. If there are a number of people in remote parishes who think rural electrification would be an asset to them, it is our duty to have it provided for them.

I hope no time will be lost in completing the rural electrification scheme and going over it again over a period of five to seven years, to connect other areas that have been overlooked, or to connect branch districts to already connected areas and serve a number of small holders. I know quite well that the board will be willing, and only too pleased, to provide such services, and this House will provide the money. I believe that the Minister will be met reasonably and fairly on all sides of the House when he asks for money for development of the character to which I have referred.

Some time ago, the Minister came to the House looking for a rather considerable sum of money for the ESB for rural development. At that time I brought to the attention of the Minister and the ESB the areas of Burnfort and Rahan which are within three or four miles of Mallow. We had hoped that those areas would be connected. They are not mountainous districts and they are not out of the way. Any district within three, four or five miles of Mallow is not out of the way.

The Minister and Deputies know that at present it is absolutely essential for any farmer who is progressive to have electricity installed in his premises. There are many people in those districts who are still depending on candles and lamps. They have no power for water supplies; they have no power for milking; they have no power for anything. I thought when that money was voted here, that area would have been connected. Since then, I have received many letters in that connection but nothing has been done. I should like to know from the Minister if it is to be done. If it is not, we will have to adopt a different attitude when money is being voted in this House for the ESB in future.

The reception of this Bill has been very constructive, and I want to make some observations on the various points raised. Deputy Sweetman charged the Taoiseach with having, on a previous occasion, promised that there would be no special service charges, that there would be no need for them if we got back into office. What the Taoiseach was doing was trying to call the bluff of the then Minister in charge of ESB affairs, by saying that if the ESB could afford to finance rural electrification without capital subsidy from the Government, there would be no need to apply special service charges.

On that occasion Deputy Norton was warned that capital subsidies could not be abolished, and that if they were abolished, the effect would be an almost immediate increase in electricity charges. He said at the time that he did not consider it necessary to raise electricity charges. However, unit charges and special service charges were duly raised in 1956 by the Coalition Government. They have been raised on one occasion since then. As a result of the capital subsidy not being continued from 1955 to 1958, the extra cost to the ESB was something of the order of £559,000 annually.

The capital subsidy commenced again in 1958 when this Government took office. I should say, in actual fact, as time goes on, and as the ESB grow in strength, the special service charges as a proportion of the total revenue from all ESB sources steadily diminishes. It no longer has the same impact on the financial operations of the ESB as it had before. For example, in the current year the revenue of the Board was £20 million. Of that total revenue, £20,000 represented revenue from special service charges in rural areas, which is not a very high proportion.

Deputy Sweetman asked about variations in capital expenditure from 1961 to 1962 as compared with 1960 to 1961. I am not quite sure what point he was making, but I think the answer is the greater volume of work which was in hand in 1961-62. There was an increase in costs due to the general increase in labour and materials. It was relatively small, something like five per cent. Expenditure varies from year to year as stations and other work come into commission and use.

Deputy Sweetman asked about arrangements for fixing the price of turf between the ESB and Bord na Móna. That is arranged by direct negotiation. Bord na Móna like an oil supplier must be able to pay its way and the price is calculated on this basis. I am glad to see that as Bord na Móna extend their activities, as of recent date there was a considerable reduction in the price asked by Bord na Móna of the ESB. In that connection I should like to deny the suggestion made by Deputy Dillon in a recent public speech to the effect that the ESB were subsidising Bord na Móna, and that Bord na Móna would be losing money, were it not for the existence of the ESB.

A question was asked about the hydro-electric stations. Some surveys are still being undertaken. I am advised by the ESB that none of the possible sources of hydro-power are likely to prove economic and that there is no likelihood of their being introduced in the foreseeable future. I asked the ESB to make a special examination of tidal power. There is a particularly good example near St. Malo. The ESB are keeping in touch with all the modern principles attaching to this form of generation. There is no comparison between the power available in the long stretches of our rivers with outlets to the sea and those elsewhere. Therefore, it would not be economic.

In regard to nuclear generation, the ESB are in touch with engineers from the various nuclear authorities. There are constant changes in the situation. In fact, when I last spoke to the Chairman of the ESB, he told me that the cost of nuclear power is so high that we could not even begin to consider a nuclear power station unless we ran, on a 24-hour load without any variation or reduction in power, a system required for the whole of the island of Ireland. Now, the position may change in future but all I can say is that the ESB are in constant touch with the nuclear authorities and constantly getting the latest advice on the position.

When was that? The date the Minister mentioned?

I could not say exactly. It would have been within the past two years.

That is fair enough. That is enough of a time factor.

Deputy Sweetman asked why we had to come to the Dáil so soon to ask the Oireachtas to permit the ESB to draw on further capital during the next few years. The answer is the rather unexpected increase in consumption and of course, as he knows, if one could add 10 megawatts a time to generation, possibly we might not have to come so soon but as the increase in power in a single station has to be planned five years ahead and is now of the order of 40 to 60 megawatts in order to be economic, all planning has to be well in advance. The example I gave on Second Reading of the additional set to be provided at Ringsend is an indication of how quickly a very large amount of capital can be committed.

Deputy Sweetman was debating the question of the varying methods of assisting in the development of rural electrification as between assistance by the taxpayer and by the consumer. In fact, we have at the moment a combination of the two. The rural electrification account of the ESB is subsidised to the tune of some £690,000 by the urban consumers and the cost of electricity in rural districts, I might add, is very moderate by any standards, including British standards, and the general increase in the cost of electricity, as compared with that of other commodities, has been very small since, shall we say, 1938. To show how the combination works, as I said, the urban consumers and the very large rural consumers have been subsidising the general rural consumer to the tune of £690,000 in a recent year and at the same time, the Government give a once and for all capital grant towards the cost of rural electrification. Recently the subsidy was raised to 75 per cent and the amount is provided from the Central Fund and the interest and sinking fund to pay off the amount is indicated in the Estimate for the Department and amounts this year to some £350,000, so that you have a double contribution from the urban consumers and from the taxpayers at large.

Did the Minister ever calculate how many consumers were served by electricity—not how many accounts there are but how much of the population is served by electricity?

The only figure I can remember is the most recent we got for 31st March, 1963, when 72 per cent of rural dwellings were being served but if the Deputy means the total number——

I mean population.

I have not got that figure off by heart but surely the Deputy will be interested in the figure of 72 per cent for rural dwellings.

But would not 72 per cent mean that, in effect, somewhere about 90 to 95 per cent of the whole population was being served?

It might well mean that. I am afraid I have not got the exact figure. It would mean a very considerable proportion.

I will put down a question to the Minister. That is fair enough.

Deputy Sweetman also asked for a statement on the varying costs of electricity produced from the hydro-stations from one year to the other. The cost per unit is represented by the annual capital and operational charges divided in proportion to the number of units generated. When the water available for the generation of electricity is reduced, the output in kilowatts must drop and the cost per unit must rise. The ESB always generate the maximum power from the hydro-stations but naturally the amount differs according to weather conditions. I might add that weather conditions can be quite surprising. We have had a most peculiar reduction in water supply at the end of a very wet summer season. The last example of that was at the end of 1958 when there was a very sudden reduction in the volume of water at the Shannon after a very wet summer. That can affect the costing during the whole of the financial year in the most surprising way.

Then of course we also have illusions about weather conditions which are most remarkable. For example, the head of the Meteorological Office, which is run by my Department, told me that for a very great part of the Republic in 1962, the rainfall was not abnormal compared with some 40 years average, but what was abnormal was the fact that the temperature was lower in the summer season, so that when what was not actually an abnormal rainfall ceased, people continued to feel chilly and dispirited in many places because of a lack of sun and low temperatures. One's impressions of weather can frequently be misleading because the human being considers not only rainfall but temperatures and sunlight. Therefore, there may be occasions when one wonders why the cost of hydro would appear to be higher than it should be. It is, of course, because of a sudden fall in water levels which are not appreciated by ordinary people.

Deputy Sweetman asked a question about the use of plant. The plant of the ESB is never fully extended over the whole of the year and the plant must be geared to deal with the peaks and the demand is not uniform throughout the year. One particular condition which applies in this country is that there is not a sufficient 24-hour use of electricity by industry. Therefore you have a different form of peak and a different peak problem in the winter months from what one would have in an area where, quite apart from the domestic demand, there were a number of industries working on a two or three shift basis and using large amounts of current. It is very interesting to compare the type of peaks there are in relation to the maximum amount of power that has to be available at any one time. It is interesting to note that from time to time suggestions have been made by certain Deputies who specialised in the theory that the ESB has excessive capacity.

In that connection, I would remind the House again of the extraordinary conditions during the winter months of this year when every single station in the ESB was running absolutely flat out. If there had been an abnormal breakdown—the kind of breakdown that can take place from time to time in any of the big stations—the ESB would have been in a very difficult position. They only just had enough generating plant, making allowance for using everything at its maximum rate, to deal with the tremendous demand at that time. I am sure the House would wish the ESB to remain in that position so that when blizzards alter the grid system around the country by blowing down poles and wire, and when there are sudden tremendous demands for power, the ESB will be able to meet the situation.

A number of Deputies deprecated the existence of many unsightly poles. I suppose this whole question will come up for consideration when the Planning Act comes into operation and it will be possible for local authorities to make observations on the existence and desirability of a number of ESB poles but any change will be extremely costly. I cannot remember how much more it costs to lay a cable underground across the country but it is very much more than that of erecting poles. However, I do remember the cost, in a typical housing scheme in a small town, of providing an underground cable to each house instead of the present poles. It amounts to £40 a house, assuming there are no specially difficult conditions—and that is a very considerable sum.

The service could be laid on to the backs of the houses in most cases.

I suppose it could be laid on the houses in some cases but many people might object. This will come up for examination under the new Planning Bill, when it is passed. I myself dislike seeing a great many unsightly poles. They look like a spider's web in many areas. I hope we shall be able to afford the underground system, if at all possible.

Deputy Tully spoke about certain areas where voltage fell below the minimum. I understand the voltage regulation is an essential part of the general regulations of the ESB which will be examined and regulations will be drafted in relation to guarantee of voltage. We have been discussing these draft regulations for some time with the ESB.

Deputy Tully spoke about some delays in respect of the rural electrification scheme. I explained, in answer to a question recently, that with the increase in the subsidy there has been a considerable increase in demand. I did make the suggestion to them but the ESB decided in their own right, apart from anything I said, to recanvass areas so as to provide electricity in the most orderly and organised manner at the lowest cost. There may be delays where two or three people want their houses connected and where the canvasser will try to get another half dozen people in the immediate area to take power so that the work can be done more efficiently and that the cost would be less and may actually affect, marginally, the extra service charges to be paid by a few people. They may actually be less if the work is done in an orderly, organised way in a given area.

To illustrate the effects of the 1962 Act and the increase in the subsidy, the number of consumers connected under rural post-development—that is, in areas where there is already a network—is estimated for the year ending 31st March, 1963, at 4,670 as compared with 3,200 for the previous year. That represents an increase of 40 per cent even though the Act was passed only in the middle of 1962. The gross expenditure during the same period increased by 47 per cent. That shows that people are taking an interest in connecting with the system. I hope we shall see many more of those who are still making use of other forms of light taking part in the rural electrification system.

Deputy Tully questioned the system of imposing service charges on the community in general. He suggested a universal unit charge. That has been examined many times. The present system is the fairest and is practically universal everywhere. I do not think it would be any advantage to people of low income if the system were changed. The service charge is based on a calculation of the annual contribution to the capital and maintenance cost of providing the connection. Any deficit is charged as an extra service charge to the particular would-be consumer. If it is 1/-, as Deputy Tully suggested, it has to be 1/-. It is an exact mathematical calculation. It is only fair that it should be applied exactly.

Deputy Corry referred to some area that had not yet been developed. As I indicated in reply to a question, the ESB anticipate developing all the areas of the country by June or July, 1964. Work in a number of areas will be completed by the end of this year. I am sure the area to which Deputy Corry refers is included, too, because they are covering every area within the space of about 15 months.

Deputy Flanagan suggested making differential charges to consumers with lower incomes. I think that would be most inadvisable. It would be most difficult to administer. It would cost quite an amount to the ESB to provide differential charges to people in different personal circumstances. The answer is to increase social welfare payments and to increase whatever aid can be given to people in less well off circumstances. I should like to remind Deputy Flanagan that since 1954 the social welfare payments have gone up by something like £20 million and all but £2 million was given by the present Government.

Deputy Flanagan paid a lengthy tribute, not by name, to the Taoiseach for his entire and complete responsibility in devising the turf development scheme.

I paid a tribute to Deputy McGilligan, not to the Taoiseach. I never mentioned the Taoiseach's name.

I said Deputy Flanagan was referring with delight to the turf development scheme and, in so doing, was paying a tribute to the Taoiseach was was entirely responsible for suggesting the scheme and getting it going. I am glad to hear that, for once. In reply to Deputy Flanagan, I might say that all the bogs suitable for turf development will be exploited by 1968. The engineers of Bord na Móna and the ESB are in close co-ordination in devising the programme.

Would the Minister undertake to see that all future development will take place in the counties of Kildare and Offaly? The only places in which we have good bogs are North Kildare and all of Offaly.

I could not guarantee that at all. Any good bog where the technical conditions are suitable will be developed. The examination has been completed and unless some new technique is evolved—and the research department of Bord na Móna is very active and always examining new techniques and new ways of lowering costs of milling turf—it is unlikely there will be any change in the programme which has been devised and which, as I say, provides for the use of all the available and economic turf in the country before 1969 for the provision of heat for power.

I think I have already mentioned the fact that electricity charges were increased in 1956 as well as in a later period but that the cost of electricity has gone up very much less in comparison, I should say, with most commodities, since 1939, partly because of the great growth in consumption and the great growth in production.

I think I have answered virtually every question that has been asked of me and I commend the Bill to the House.

Question put and agreed to.
Committee Stage ordered for Wednesday, 5th June, 1963.
Top
Share