asked the Minister for Industry and Commerce the action he proposes to take with regard to imported calcium ammonium nitrate contained in compound fertilisers and straight nitrogen which enjoy a difference in manufacturing cost of £15 per ton due to North Sea gas; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Fertiliser Manufacturing Cost.
28.
I recognise that because of the availability to them of natural gas feedstock from the North Sea, some fertiliser manufacturers in Britain at present enjoy a manufacturing cost advantage over their competitors in this country. Other fertiliser manufacturers in the UK and those in other member states of the EEC are understood to be at a disadvantage for the same reason. I understand, however, that the favourable price being paid for natural gas for fertiliser manufacture in the United Kingdom is at present under review.
Apart from any question of the legality within the EEC of restrictive measures of the kind implicit in the Deputy's question, a major consideration in this context is the future development plans of the industry in Ireland. I would point out that the new NET factory at Marino Point which is due to commence production in 1978 using natural gas from the Kinsale Head well has been planned on the basis of serving not only the home market but export markets in the EEC and elsewhere.
As the Parliamentary Secretary has admitted that there is a differential of approximately £15 on calcium ammonium nitrate, will he now say that the farmers of Ireland, due to our gas in Kinsale, can look forward to a reduction in the price of both straight nitrogen and from compound fertilisers?
Obviously one cannot predict exactly what the price would be in 1978 of the fertiliser to be produced at Marino Point, but by virtue of the fact that it is using natural gas and will be a very modern plant, I think we can anticipate that it will be very competitive and certainly competitive with similar products across the water.
The Parliamentary Secretary is not answering the question I have asked. He has admitted that at the moment. because of North Sea gas we are able to import calcium ammonium nitrate at £15 a ton cheaper approximately than we are able to manufacture it in Ireland. He is talking about Kinsale gas in the last two questions. Will he now say if he anticipates a reduction in the nitrogen and compound fertilisers that contain nitrogen?
I would hope so, but I cannot prophesy the price to be charged by NET from the Marino Point for fertilisers in 1978. I cannot state with any definiteness that it would be any lower than the price being charged now. That would be a foolhardy prophesy for me to make but I would hope it would certainly be very competitive.