andMr. Kelly asked the Minister for Industry, Commerce and Energy the present position regarding the erection of a zinc smelter in the light of the prevailing energy and zinc market situation.
11.
Ceisteanna—Questions. Oral Answers. - Zinc Smelter.
10.
asked the Minister for Industry, Commerce and Energy if it is intended to proceed with the construction of a zinc smelter at Ballylongford, County Kerry, and when it is expected the consultations with interested parties abroad on this project will be completed.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 10 and 11 together.
Outline planning permission for a zinc smelter at Ballylongford, County Kerry, has been sought but, as I have indicated on previous occasions, it has not been irrevocably and finally decided that the smelter will be built at Ballylongford. It is possible that during the course of ongoing studies and discussions there might be reasons to decide to locate the smelter elsewhere. As I indicated recently in reply to a question by Deputy Kelly, discussions are continuing with a number of companies about participation in the zinc smelter project. These discussions have been influenced in a positive way by the trend in recent months in the price of zinc metal. Since the zinc smelter project is energy intensive, the prevailing energy situation will have some bearing on the final outcome of the discussions and this aspect is under continuous examination. I cannot at this stage say when the discussions are likely to be completed.
Is it the case that the price for zinc on the world market is to some extent influenced by the demand for motor cars and that if there is an increase in oil prices this will reduce the price paid for motor cars and hence the price paid for zinc? Has the Minister made any estimate of the likely effect of the recent increase in energy costs and electricity on the economics of this question?
Motor cars are one of the areas in which zinc is used. For some years past there has been a tendency, especially in the US, to phase down the amount of zinc used in cars, principally because of the weight of that metal, and to substitute for it alloys which are much lighter and which are claimed to be equally strong. If there is a downturn in the world automobile market, obviously it must have some impact on the zinc market and accordingly on zinc prices, but the effect would not be as great as perhaps it might have been some years ago before the trend towards substitution of alloys had commenced. So far as energy costs are concerned, obviously increases in energy costs must have a bearing on the economics of this or any other smelter proposal because it is relatively energy intensive. The capacity needed to supply it is about 40 megawatts.
Is the Minister now telling the House that there is grave doubt about having a zinc smelter in Ballylongford?
I explained the current situation, as I was invited to do by Deputies. I never expressed any doubts, grave or otherwise or made any suggestion to that effect. I have given a factual statement.
The Minister is going back on his word. It was in the Fianna Fáil manifesto.
Who will finally decide on the siting of the smelter in Ballylongford? In the event of Ballylongford being ruled out, what other sites might feasibly be suitable for a smelter?
The ultimate decision as to the location of the smelter would be a matter for the promoters when the consortium or group of companies has been finally put together. As I pointed out on several occasions, Ballylongford seems to be the optimum site, but it is by no means the only suitable site. It would be foolish of me to mention the names of other sites because it would create expectations in other areas.
Would there be sites available close to major centres of electricity generation?
Location close to a major centre of electricity generation is a great help, for obvious reasons.
In other words, there is a big re-think going on?