asked the Minister for Transport and Power if, in view of the possibility of an oil shortage due to the current Middle East conflict, he will take all steps possible to ensure that, as a matter of priority, the supply of central heating oil for the 3,200 flat dwellings in Ballymun, Dublin, is adequately maintained.
Ceisteanna—Questions. Oral Answers. - Oil Supplies.
16.
Should the oil supply situation deteriorate as a result of the present conflict in the Middle East to the point where it would be necessary to ration heating oils, due consideration will be given to the position of the Ballymun flats.
Is the Minister aware that in January and February, 1969 great hardship was caused to the tenants in the Ballymun dwellings because of the maintenance strike which resulted in a complete lack of oil to the central heating unit there? Could the Minister ensure that alternative arrangements would be made for the heating of the water not only at Ballymun but also at Kilbarrack and at St. Michael's Estate in Tallaght in the event of a crisis? All of these dwellings depend completely on oil for heating.
The matter would not be one for my Department. It would be the concern of Dublin Corporation or Dublin County Council, whichever body owned the flats. The present situation is nowhere near crisis point so that the question of rationing in the foreseeable future does not arise but in the event of there being a deterioration in the situation, Ballymun would be given special consideration.
17.
asked the Minister for Transport and Power the contingency plans, if any, the Government have to ensure fuel oil and petrol supplies for essential purposes in view of the increasing shortage of these resources.
18.
asked the Minister for Transport and Power if there are plans in hand to deal with any shortage of oil supplies that may arise as a result of the Arab/Israeli war; and if he will make a general statement on the position.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 17 and 18 together.
During the past year the international oil situation had become tight and supply and demand were only just about in balance. In a situation of this kind even temporary dislocations of supply or abnormal demand could give rise to a temporary shortage of individual oil products. Some distortions in demand had arisen because, among other reasons, of the emergence of the US as a significant importer of oil products. It was not anticipated, however by the oil industry that any critical shortages would develop over the coming winter, though in the tight supply situation it was expected that the already existing pressure on prices for certain products would intensify and some products could be scarce.
The advent of the Arab/Israeli conflict introduced a new element of uncertainty into the supply position. So far it has resulted in a reduction of approximately 10 per cent in supplies to Europe through closure of the Eastern Mediterranean pipe-lines. The recently declared intentions of the Gulf States to restrict production and supply to States friendly to Israel and increases in prices have serious implications but the outcome depends on the evolving military and political situation in the Middle East. The cease-fire should ease the situation and a satisfactory peace in the area could lead to a return to the normal supply situation.
This country in common with other States, members of the OECD and the EEC, participates in a stock-piling programme which entails the maintenance by each member State of an oil reserve equivalent to 65 days supply and our stocks meet this requirement. The OECD programme provides also that, in the event of an emergency supply situation, the supplies becoming available will be shared equitably among the member States in proportion to their imports in a datum year. We are thus ensured of an equitable share of European imports.
In anticipation of the need to exercise some control on certain oil products, the Government have, on my advice, made an order bringing into force the Fuels (Control of Supplies) Act, 1971. I have, therefore, been given powers to provide by Order for the control and regulation of the supply and distribution of petroleum oils. I am keeping a close watch on the situation in conjunction with our EEC and OECD partners. My Department are in constant touch with the oil companies here.
The need for formal rationing of oil supplies has not yet arisen although the steps necessary to bring rationing into effect at short notice are being arranged in my Department. As a precautionary measure, I have asked the oil distributing companies to restrict deliveries of oil products to customers to normal levels so as to prevent cornering of supplies by some persons at the expense of the community generally.
Is the Minister aware that 95 per cent of our oil supplies come from the Middle East and in view of the very uncertain political and military situation in that area, the position in regard to our oil supply is very unsatisfactory? Will the Minister take the necessary steps to negotiate oil supplies from other parts of the world?
Ours is not the only country in the world which is dependent largely on the Middle East for oil supplies. However, the ESB have negotiated a contract with the Russian oil companies and Tedcastle McCormick, whose terminal the Taoiseach opened recently, also import oil from Russia. I am very conscious of the need to diversify not only the source of our oil supplies but our sources of energy supplies generally.
19.
asked the Minister for Transport and Power if he will state the advantages in buying oil from Russia rather than the Middle East.
The source of oil imports is normally determined by oil importers having regard to commercial considerations such as price and delivery terms. Security of supply is another very important consideration and in the present circumstances there are obvious advantages in the widest possible diversity in sources of supply. Russian oil has been used for some years past in this country and no problems in relation to supply or quality have come to my notice.
Is the Minister aware that Russian oil is alleged to have a lower sulphur content than any of the other oils available to us and that, consequently, in the interests of the prevention of air pollution, it is worthwhile considering the importation of greater quantities of Russian oil?
I accept what the Deputy says.