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Dáil Éireann debate -
Wednesday, 22 Oct 1980

Vol. 323 No. 4

Ceisteanna—Questions . Oral Answers . - Coal Imports .

5.

asked the Minister for Energy whether he or the ESB has under consideration the negotiation of an agreement or agreements with a coal-exporting country or countries to maintain long-term supplies to this country at a pre-determined price.

: In so far as current requirements of coal are concerned the actual negotiation of agreements with coal suppliers in exporting countries has traditionally been a matter for the Irish coal importers themselves.

With regard to the ESB, the board have issued an inquiry for coal supplies for Moneypoint generating station to major, coal producing countries and suppliers. The replies to this inquiry are being evaluated at the moment but no decisions will be taken for some time.

I have been considering how best the procurement arrangements for coal could be co-ordinated or centralised on a national basis in the light of the much greater overall demand for coal imports which will arise when, in due course, substantial requirements of the ESB and large industrial users have to be met in addition to traditional demand. I have not, however, reached any conclusions on this question.

: Would the Minister agree that there is roughly a similar case to be made in regard to effective management of the coal market as there is to be made in relation to oil purchases? Would he look favourably at the course which might follow, that we would have a national coal-buying agency analogous to the petroleum corporation?

: It is possible that my conclusions on that question would embrace that kind of proposition. As I have indicated, I have been considering a procurement arrangement so that the buying could be co-ordinated on a centralised or national basis. The Deputy will appreciate that even in the case of the National Petroleum Corporation they are dealing with only a certain percentage of the market and that that corporation was set up in response to a movement which has taken place through our oil producers favouring a Government to Government contract. Such a movement is not terribly obvious in the coal business over the years at least in dealing with, say, communist countries. While I am trying to co-ordinate the coal-buying arrangement on a national basis and we might end up with something like the INPC, I would not like to indicate at this stage that that was the best solution.

: I agree that the pattern has not worked out comparable with the way it has worked in the oil market, but it would be a great advantage to us perhaps in regard to a friendly country with large coal resources, such as India with which we have trade links, in trying to negotiate long-term contracts with selling rights so that whatever happens will reflect on the oil market for years to come.

: It would not be realistic to think that it was open to us to negotiate a contract for the purchase of coal from any country in which there would be a fixed price for a very long period. No information available to me suggests that that is a real possibility.

: I am asking the Minister whether we are importing any large quantities of coal from America. Is he aware that there are available on a long-term basis very large quantities of coal, provided those can be contracted for by either a Government or a Government agency, which are perhaps much more attractive than what we are importing at the moment?

: Is the Deputy referring to America in the later part of his question?

: There are substantial quantities of coal being imported from the US at present and negotiations are in progress for further imports from the US. As regards the availability of coal from the US on a Government to Government basis on the terms outlined by him, I am not so aware.

: A Cheann Comhairle——

: Ceist a Sé, le do thoil.

: Could I ask the Minister——

: I have called Question No. 6.

6.

asked the Minister for Energy whether, in view of the likelihood that greatly expanded coal imports will be implied by the postponement of nuclear development, he considers that existing facilities for landing, storing and transporting large quantities of coal are adequate.

: The existing facilities, together with facilities now being provided or in contemplation, for landing, storing and transporting coal for use in this country are regarded as adequate.

: Is the Minister saying that facilities—for example, in Dublin port—for a coal import figure of several times what it is now are adequate and facilities for transporting it include railway rolling stock? What other forms of transport will be employed? Have CIE, if called on, enough rolling stock to transport five times the amount of coal we now transport?

: The Deputy will appreciate that CIE will not be asked to transport five times the present amount with the present rolling stock. The projects ahead will include not only a project of an increase in the import of coal but also a project of change and improvements and expansion in the facilities for landing, storing and transportation of coal. The inquiries which my Department have made from various sources indicate that, leaving aside the ESB and another large industrial user who will almost certainly provide their own facilities, the expected facilities for landing, storing and transportation will be adequate to keep pace with the expected growth in imports.

: Are there people in a definable section in the Minister's Department who have the specific responsibility of keeping an eye on this question?

: Yes, there are.

: Could the Minister define what is meant by the word "adequate"? The question itself could be deemed to be unclear. Would the Minister have a more detailed study carried out of the implications of transporting through the port of Dublin and the surroundings the increased quantities of coal to which he referred? Perhaps he would give the House details of such a study. The question which the Minister answered is not sufficient to satisfy the concern of myself and Deputy Kelly.

: I must make two points in response to that. Firstly, the question of transport facilities generally is one for the Minister for Transport rather than the Minister for Energy. Secondly, it would be a mistake to assume when talking about increased imports and facilities that we are speaking solely of the port of Dublin. We are talking of other ports as well.

: Regarding imports of American coal which we are obtaining at lower prices than coal from elsewhere, has the Minister had any studies carried out of facilities on the north and northwest coast which would seem to be obvious landing points, rather than all coal going to Dublin?

: The information I have received in regard to the availability of facilities and the likely availability during the next few years includes information concerning ports on the west coast.

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