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Dáil Éireann debate -
Wednesday, 5 Dec 1973

Vol. 269 No. 8

Ceisteanna—Questions. Oral Answers. - Petrol and Oil Rationing.

26.

asked the Minister for Transport and Power if it is proposed to introduce a rationing system for petrol and oils; and, if so, when.

27.

asked the Minister for Transport and Power if he is satisfied that supplies of petrol and oil are sufficient to meet present requirements and that it is unnecessary to introduce a system of rationing; and the steps he proposes to take to eliminate the difficulties being experienced by motorists and other fuel users in obtaining supplies in certain areas.

28.

asked the Minister for Transport and Power if he is satisfied that none of the scarce petrol or oil supplies of this country have been diverted to more lucrative markets.

29.

asked the Minister for Transport and Power if, in view of the conflicting reports widely circulating as to the actual percentage cut in supplies of petrol and fuel oil, he will make a statement in the matter.

With your permission, a Cheann Comhairle, I propose to take Questions Nos. 26, 27, 28 and 29 together.

Practically all our requirements of crude oil and oil products are purchased through or from the major oil companies in Britain and in the present situation we expect to receive supplies at the same level as the British domestic market. From the information available to me I understand that there is an overall shortfall of something over 15 per cent of full current requirements at present and I have no reason to believe that we are not securing our fair share on this basis. While this reduction in supplies is bound to cause some inconvenience and requires a reduction in unnecessary consumption it should not, in the short to medium term at any rate, cause serious hardship to individuals or to the economy. I cannot say, however, whether deliveries will continue to be maintained at this rate in the coming months.

In the light of the supply situation, I have already made orders restricting deliveries of oil products. In the case of products for manufacturing industry and essential users deliveries for the current quarter are fixed at 95 per cent of last winter's user. Petrol and oil products for retail sale through garages, etc. are restricted to 90 per cent of last winter's user. Because the restrictions were imposed in the middle of the current quarter the impact of the cuts on garages or others who had been using up their allocations at normal or increased rates has, of course, been greater than the normal rates of 10 per cent or 5 per cent. The orders provide for special allocations for new or substantially increased businesses. There is also provision under which, after consultation with my Department, the oil companies may be authorised to deliver additional supplies to meet essential requirements or special circumstances. Unless and until formal rationing is introduced difficulties experienced by industrial and other essential users should be taken up in the first instance with their suppliers as this is the most rapid way of dealing with them in present circumstances.

The present level of oil supply should not require the introduction of formal rationing of petrol which accounts for only 15 per cent of our oil consumption but all necessary preparations for a rationing scheme are being pushed ahead so as to ensure that if such rationing becomes necessary it can be brought into effect at short notice. In the meantime I hope that motorists will respond to my appeal for a reduction in petrol consumption, particularly by the elimination of unnecessary motoring. I have also discussed with the trade the possibility of introducing more order into the situation so as to ensure a measure of priority for essential users. There is much scope for voluntary reduction in motoring and if my appeals are responded to reasonably the situation should stabilise and it should not then be necessary to introduce formal rationing unless the supply situation deteriorates.

I have no reason to believe that oil supplies which would normally come to this country have been diverted to more lucrative markets. I do understand, however, that there may be limited supplies of oil in certain categories available on the international market to the highest bidder.

Would the Minister not agree that his appeals over the last week or ten days have failed completely and have fallen on deaf ears as far as the public are concerned? Is he not aware that members of the public, industrialists and industrial workers are experiencing concern and that all of them would welcome some form of rationing rather than have the present chaotic conditions continue to prevail? Would the Minister not agree that what is really needed now is some definite action in order to regularise the present position rather than have it in the long-term as mentioned in his reply?

No, I did not mention long-term. I do not agree that my appeals have fallen on deaf ears throughout the country. By and large, with the exception of Dublin, as I said last week, there seems to be tremendous co-operation with my appeals. This week in Dublin—one can judge this for oneself by observation and by the action of some garages in allocating supplies in a different manner— there are not such large queues outside Dublin stations now. There is sufficient petrol available at the moment—and that is as far as I can say now, at the moment—provided people do not use it for non-essential purposes, provided they reduce speeds, are careful in driving and avoid stopping by jamming on brakes and so on. There are many ways in which this 15 per cent effective cut in present requirements can be met without rationing—with some inconvenience, yes, but without rationing. If, when people go to their garages they take only what they require and not try to grab what should be left for those who need it such as commercial travellers, doctors, nurses and so on, there should not be necessity for formal rationing now. At the same time, as I said in the reply, steps are proceeding to introduce formal rationing should it become necessary. That will depend on how seriously people take my appeals, what the supply situation is and what level stocks remain at. If the supply situation becomes worse, of course there will have to be formal rationing.

Deputy Barrett spoke about industrialists and this of course is the most important thing. Many people can do without private motor cars. This does not mean that the petrol which we import which is refined in Whitegate can be switched to running machinery in factories and so on. I am meeting the Irish Congress of Trade Unions, the farmers' organisation and the Federation of Irish Industry in the morning to discuss with them how they can cut down on the use of an essential fuel for industry to ensure that there will not be redundancy or that people will not be laid off because of the present very serious world-wide situation.

Anybody reading the papers can see that the other governments in Europe and in the world are concerned about the present shortage of energy. We will have to watch the situation carefully and ensure that as few people as possible, and none at all if possible, lose their jobs because of it. It is serious but we think that this is the right action to take at the moment.

Having full regard to the difficulties of the situation imposed on the Minister, does he consider that his admonition to people not to use petrol other than for essential purposes and the requirement on those who distribute and supply petrol to do so to those who are most in need for industrial and other purposes, is not too great a burden for them to bear? Should the Minister intervene and impose some form of rational system of distribution at this stage?

At the moment the motor trade do not want rationing.

I said "rational system".

Officers of my Department met the motor traders during the week and they are coming back tomorrow morning with suggestions as to how there could be a more equitable solution to the problem so that people like doctors would not have to end up at a long queue of cars waiting to get petrol.

That is what is happening.

Possibly that has changed in the last couple of days. I hope to introduce some rationale into the system.

Arising from the Minister's reply could I ask him specifically in regard to Question No. 28 whether he is satisfied that there is no diversion of our supplies from the country of supply or on their way to this country and whether he has taken steps to ensure that this does not happen? In regard also to the answer which the Minister has given generally, is it a fact that, instead of there being an alleged 10 per cent cut in petrol supplies as announced, related to 90 per cent of last year's supplies, because of the cut being half-way through the quarter, with an increase in consumption this year of at least 20 per cent, the net effective cut is somewhere in the region of 40 per cent rather than 10 per cent, and if the figure is not 40 per cent it is substantially higher than 10 per cent? Would the Minister clarify everybody's mind in this regard because the 10 per cent being bandied around is giving a false impression?

Brevity in the questions, please.

I am asking the Minister to put a figure on the average, in view of the factors which I have mentioned and to give us the real figure we are dealing with during this quarter.

Question Time does not permit of a debate on this matter.

Deputy Blaney is right. There has been an increase in consumption in the last 12 months. That is estimated to be around 10 per cent. That, taken with the 10 per cent on last year's pickup, means that something less than 20 per cent is the best estimate. Because this imposes certain difficulties for garages which may have sold more in the first half of the quarter than what they would be allowed under the quota system. I have made arrangements with the oil companies from the 10th of this month that the garages may get an advance of 5 per cent on the January supply. That will help to ease the position around Christmas. I agree that there has been some confusion about these figures.

What about the danger of diversion?

I am satisfied that we are getting the same percentage as is going to the British domestic market. I have written to the oil companies saying that I would expect to see that we got exactly the same proportion as is made available to the British domestic market.

Is the Minister aware that the people engaged in the long haulage business are experiencing great difficulty in getting supplies of diesel fuel? For instance, people leaving the south or west of Ireland to get to Dublin are having great difficulty getting supplies for the return journey. They are unable to make any commitments to their customers. Does the Minister realise that this could have a serious effect on the economy, particularly with regard to the movement of industrial and many other goods? Would the Minister make some special provision to ensure that these people get supplies for the return journeys?

I am well aware that this could have very serious effects on the economy. It is up to everybody, including the long distance haulage people, the Deputies, big industrialists and the housewives to cut down on their use of energy. We cannot say whether the situation will get worse or not. If particular people have difficulties in certain situations and if Deputy Barrett wants to give me a list, I will have their cases considered in my Department. There are people in difficulties all over the country. If the Deputy gives me details of particular cases I will do my best to see that they are considered.

I cannot say their problems will be solved. Nobody can have 100 per cent of his usual supplies. Everybody must save. The problems cannot be solved but we will try to alleviate the position. I will do my best to see that people are satisfied.

Will the Minister give serious consideration to banning weekend driving except for very essential purposes? Would this not be a way of conserving fuel especially at weekends when cars may not be required for essential purposes?

This has been suggested. I have asked the motor traders to look at this point. We will discuss it again in the morning. Their preliminary advice—and my own feeling—is that the situation in this country is different from that in other European countries which have banned Sunday driving. There are many sports fixtures in rural areas on Sundays. Many of these fixtures involve travel. There is a big church going population in this country in the rural areas. People must be taken to Mass or to church. They require transport. This ban is something which could be considered if necessary but at the moment I am not greatly in favour of it.

In view of the fact that rationing cards are about to be distributed and as there are several users of oil and fuel who are not recorded and who are unrecordable—I instance users of bottled gas and people who use oil heating systems in their homes—could the Minister allay their fears and assure them that they will get a reasonable supply of fuel in the event of rationing?

At the moment they are getting 90 per cent and it is up to them to cut down on the use of such fuel and to spread it further. Normally the person from whom they get supplies will have 90 per cent of what was available last year. It will be up to the people who use this form of heating or cooking to use their supplies as sparingly as possible. The ordinary town gas which we use is also made from oil. Its use should be conserved at the moment.

The availability of gas, whether in bottled form or in the form required for heating homes, will be at the whim of the individual supplier and not under Government control?

It will be on an allocation system such as the garages are using at the moment. There are relatively few outlets from which such supplies are available. Most of the suppliers know their own customers. If a customer has a difficulty in such case we will try to solve it in the Department.

It is up to the people who use five cylinders for the winter to cut down their use to four, and this can be done by not leaving the cylinders on unnecessarily. There are various ways of saving even 20 per cent of our use of heat. It is essential for this country, if we are to keep going, to cut down on our use of energy.

Would the Minister accept that there are some people who depend entirely on oil for domestic heating, that in respect of the application of his 90 per cent quota certain oil companies are refusing to deliver quantities which are less than 100 gallons? The result is that there are people who cannot enjoy the 90 per cent quota and who have absolutely no oil at all. Would the Minister direct the companies to deliver whatever amount people are entitled to?

This is a problem, and what we have asked the companies to do now is to give the quota for the coming quarter in this quarter as well. There is no economic drop under 100 gallons and they are now being asked to deliver the next quota as well as the current quota.

The remaining questions will appear on tomorrow's Order Paper.

I wish to ask just one supplementary.

(Interruptions.)

It is past 4 o'clock. The Chair has no discretion in the matter. We have had quite a debate on the matter.

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