asked the Minister for Industry, Commerce and Energy (a) whether he will immediately introduce a system of rationing, or of otherwise ensuring a fair and stable distribution of petrol and other oil products, to meet the universal public emergency which the present shortages have produced, and to protect the economy, in particular agriculture, fishery and tourism, from further loss; and (b) whether the machinery of rationing set up by the then Minister for Transport and Power in 1973-74, and in particular the supply of an adequate number of ration coupons having regard to the annual growth in the number of consumers, has in fact been kept up to date, in accordance with the standing instruction then given by that Minister.
Private Notice Question. - Oil Supplies.
asked the Minister for Industry, Commerce and Energy the action he proposes to take to ensure a fair distribution of petrol supplies in view of the present crisis; if he proposes to take the option of introducing a national rationing system—based on stated priorities of need, particularly those dependent on petrol supplies for employment—to replace the present unofficial rationing which is grossly unfair or if he proposes to take the option of arranging for increased supplies with the assistance of the EEC states at this week's Energy Council of Ministers meeting and if he will indicate the course he proposes to adopt to allay public confusion in this matter.
asked the Minister for Industry, Commerce and Energy what steps the Government propose to take to resolve the present very grave fuel crisis and if he will make a full statement on the matter.
With the permission of the Ceann Comhairle, I propose to take the three questions together. This country is particularly affected by the present oil shortage, which affects all Western countries to one degree or another, by our unusually high growth rate. We have no oil resources of our own. We must, therefore, by careful and prudent use of oil, especially petrol and gas diesel which are the products in most demand, stretch the supplies available to us to the best advantage. The Government have, therefore, decided that I should make an order to the effect that the minimum amount of petrol which may be purchased at any one time should be £5 worth, except that in the case of cars with tank capacity of six gallons or less the amount shall be £4 worth. We have also decided that the maximum speed limit on any road shall be 55 m.p.h. and the Minister for Justice is taking immediate steps to have this new limit very strictly enforced. The necessary orders will be made today.
I also wish to state that the insurance companies have agreed that the position adopted by them towards car-sharing during the January 1979 bus strike will apply in present circumstances. In other words, payments made by passengers towards running costs as part of a car-sharing agreement would not invalidate the motor insurance cover. I hope this opportunity for car-sharing will be fully availed of. There are serious oil problems and it behaves each and every one of us as best we can to co-operate in ensuring that available supplies are not wasted. We can all play our part by the various means open to us, including the elimination of unnecessary motoring. I am confident that if we all pull our weight the problems which face us will be largely overcome.
I might add that at the forthcoming Energy Council meeting on 17 May I propose to draw special attention to oil supply problems in Ireland. I do not subscribe to the view that the introduction of rationing, as envisaged by Deputy Kelly, would be appropriate in present circumstances. I have already told the House why I consider rationing would not be suitable. Deputies may, however, wish to know that we have an adequate number of ration coupons, application forms and so on available to us in the event that rationing of petrol or other oil products might have to be adopted at a later stage.
As I have already indicated on a number of occasions, the supply situation for petroleum products is under daily continuous review with a view to dealing in the most effective manner with whatever problems exist. It is, unfortunately, a position which varies from day to day and because of the volatility of certain factors at the producer end one cannot predict precisely what the future may hold. However, on the basis of our present information I am satisfied that there is no need for panic measures such as rationing. It may well be that in the next couple of weeks our position will have improved substantially and certainly the Government will do whatever they can to secure our supply situation. We are acting in close co-operation with the operating companies, with whom all aspects of the situation are being reviewed, and I am hopeful of some improvement in the supply position reasonably quickly.
I have three or four questions to put to the Minister and I hope, in view of the gravity of the matter, that the Chair will allow them go through. While I agree that the speed limit which was announced is an excellent idea, and while welcoming also the arrangements the Minister proposes to make in regard to insurance, I should like to ask him whether he regards the rule relating to a minimum amount as an adequate response to a situation in which most people are worried not about a minimum amount but whether they can get £5 worth of petrol?
Unfortunately, many of the troubles and difficulties, especially in Dublin, in regard to queueing which cause problems for genuine people are caused by people buying, as recently as yesterday, amounts of petrol costing as little as 50p, 90p and £1. I do not suggest that any one of these things on its own would solve the matter or be in itself a major contribution but I can see a situation in which after these steps are taken today it may well be that certain further steps may have to be taken tomorrow or the following day.
Does the Minister not recognise that the number of people who are behaving in this anti-social way by topping-up with small amounts is small compared with the hundreds of thousands who are desperate for a tank full of petrol for their ordinary business and social occasions?
It is constantly represented to me by people who are in a position to know, including garage owners, that they are constantly being asked to supply very small quantities. This is causing long queues which are distressing and wasteful for people who genuinely need petrol for their business and important purposes. I see this as a contribution towards helping to alleviate in some way certain aspects of the problem.
In relation to the Minister's statement about the forthcoming meeting of Energy Council Ministers in Brussels this week I should like to ask him if he has any basis of hope that additional supplies can be obtained for this country since alone of the EEC states we appear to be experiencing this shortage in a more extreme form? I agree that it is more oil supplies we need rather than rationing, but I should like to ask the Minister whether he has any basis of hope that we can get these extra supplies and whether the Minister can take steps to ensure that when a price application is pending from the companies an artificial shortage does not appear to occur at about the same time? It appears to me that an arm-lock is being applied in this situation and the shortage appears to coincide with the price increase application.
As far as the EEC are concerned I should like to state that we already have had a good deal of contact with them. They are aware of the fact that we have particular difficulties. They pointed out to us—and I have verified this from some other countries—that the cutback by the major companies seems to be approximately the same as it is in our case but the big difference is that the other countries of the EEC for the most part have either no growth rates or negligible growth rates while we have a particularly strong growth rate. Therefore, it is not sufficient for our needs for the companies to offer us 100 per cent of what were our needs in 1978. That situation leaves us short by 10 per cent or more in respect of some products thereby causing pressure and panic. For most other European countries 100 per cent of the 1978 needs is reasonably adequate and does not cause anything like the pressures and difficulties that are being experienced here. I am satisfied that there is not now any withholding of stocks by the oil companies in anticipation of a possible price rise later.
The shortage appears worse on the eve of a price increase application.
That is so but we monitor very closely the companies' stocks and in fairness I do not think one could say that stocks have increased substantially in the past week or two. I am glad to note, though, that there has been an increase in the stock of diesel oil held by the companies. Hopefully, the stock of this product will continue to build up during the summer because we will need it during the winter. However, the stocks of motor spirit are at a lower level this week than they were last week despite the fact that the deliveries seem to be continuing from the companies at a rather higher level. What may be the case is that in some instances people other than the oil companies are hoarding limited amounts but I trust that is not a widespread phenomenon because it would be very unfair to the public. Suggestions that there is such hoarding must be checked out but it is not easy to deal with such a problem in a short period. In addition, there is no law, as of now at any rate, against people not selling the stocks they have.
Is the Minister aware of the very serious repercussions of the present shortage on two very important sectors of the economy—the agricultural industry and the tourist industry? There is a very acute shortage of diesel fuel for agriculture while taxi owners and car hire operators who normally cater for the tourist trade are having extreme difficulty in obtaining supplies of fuel. In these circumstances is the Minister prepared to take special measures to deal with these two sectors?
So far as agriculture is concerned, almost the sole usage is in relation to gas diesel oil. The Deputy will be aware that about four weeks ago I made an order designating agricultural users as a priority in terms of supplies. Since then it may be that some individual farmers have had difficulty but——
There is a widespread shortage.
——before that order was made I had constant representations from organisations such as the IFA and from others speaking on behalf of farmers. There are no longer global complaints or representations but we still receive complaints in respect of individuals who for one reason or another have fallen short of their full needs. However, in general terms agriculture, like the various other priority categories, is being catered for but if there are individual cases that come to the Deputy's notice, we would be prepared in the Department to investigate them if he lets us have the details and then we could arrange to have the necessary supplies made available to those people.
Regarding the question of making fuel supplies available to car hire companies catering for tourists coming into the country, the position is that tourists arriving at the airports have been catered for fully in this respect except for two days in three weeks. There was one day a few days ago when unfortunately the Aer Rianta station at Shannon became empty and another day about three weeks ago when there was the same situation for part of the day. In both instances the situation was rectified quickly. I have given instructions that people coming into the country and hiring cars be facilitated to the greatest degree possible.
What about car hire operators?
I am talking about selfdrive cars.
In retrospect would the Minister agree that the virtual abolition of motor tax——
This is a separate question.
——and the consequent massive increase in motor vehicle registrations has resulted largely in the unique growth rate of demand in the Republic?
I would not agree. I am being reminded constantly by people in the motor trade and by others that our motor car taxation is the highest in Europe.
Has the Minister added the fishing industry to his priority list especially now that we are approaching the salmon season and when there may not be stocks of fuel to hand? Is the Minister aware that the quotas as designated by the various suppliers to the retailers were miscalculated in that the months of April, May and June were taken together, the total supply divided by three and reduced by 15 per cent resulting in a quota, particularly in the tourist areas, of more than 100 per cent of last year's supply but leaving us with a probable cut of up to 40 per cent in June? Apparently, this was a genuine mistake but a situation that the Minister should bear in mind. My last question relates to our refining capacity. In the long-term view should the situation in this respect not be reconsidered despite the fact that the EEC are saying that there is over capacity and, consequently, that there is not to be an extension of refinery facilities whereas we have the capacity for refining only about half our needs?
In regard to fishing, the Deputy will be aware that in the order I made a month ago, fishing is designated as one of the priority categories. To the best of my knowledge there have not been serious difficulties in this area with the exception of two trawlers in Donegal in respect of which there was serious difficulty but in those cases the problems did not arise necessarily from the shortage of supplies but because of certain other reasons. I notice the Deputy is smiling but if he has details of any individual case in which there is difficulty I would be glad if the people concerned would communicate with the Department so that the problem might be dealt with quickly. So far as the monthly or quarterly allocations are concerned I am aware that some of the companies allocated on a quarterly basis. This can be unfair particularly in tourist areas where the monthly or quarterly fluctuations can be very marked. I have asked the companies to allocate on the basis of the monthly allocations for the previous year rather than on a quarterly basis.
While making it clear that I regard the £5 minimum rule as likely to be inadequate to deal with this crisis, has the Minister contingency plans in mind to deal with shortages which have arisen already in respect of diesel fuel for the road haulage business? Has he analogous or better plans to deal with shortages both in that sector and in the other diesel fuel consuming areas and possibly also in the domestic heating sector for next winter when the situation may become acute again?
Haulage contractors are among those classified as priority users. They are under the general heading of commerce in the order I made and, consequently, are entitled to have their needs met in full.
Again, as in other sectors, there may be individuals who may be having difficulty and if the Deputy would give me their names, or if they would get on to the Department themselves, I am confident that I shall be able to rectify that position, as we have done in hundreds of such complaints. It is not right to postulate from one or two individual difficulties that it is widespread. Very little diesel oil at present is being supplied to people in the home heating sector. It is only being supplied to hardship cases, which are quite a small proportion. I think people would generally agree that that is only fair and reasonable, since the home heating sector of diesel consumption amounted to nearly one-third and in fact a full third in the case of some companies; therefore there is ample diesel available for these priority users, since two-thirds of the users are now able to use the complete supply. While I accept what the Deputy says about individuals having difficulties, I cannot accept that it is a general thing.
So far as hauliers are concerned, there is one category where there are special difficulties, where, say, a Dublin haulier has to go to the far end of Kerry or Galway, or anywhere like that. He fills his tank before he leaves Dublin; that brings him to his destination, but he has not enough diesel to get back and because he has no local arrangements made with suppliers in that area, he sometimes runs into difficulty. We are examining ways whereby that problem might be overcome.
I have known of some cases and to my knowledge on at least a few occasions the people in the Department have done their best to help individual hardship cases. I would like to ask the Minister to reply to what I have said. Has he got plans?
An Leas-Ceann Comhairle
I have given the Deputy ample time to put these questions.