asked the Minister for Energy when it is proposed to extend the natural gas pipeline to County Louth, in view of the urgent need there for natural gas for the development of industry and horticulture, as well as for domestic use.
Ceisteanna—Questions. Oral Answers. - Natural Gas Pipeline.
17.
The British Government's decision not to go ahead with the project to supply Kinsale gas to Northern Ireland clearly has implications for the feasibility of extending supplies to the north-east region. The economics of projects to supply towns and industries in the area are now being assessed in the light of the changed circumstances.
Will the Minister agree that County Louth has been badly hit by unemployment — he must accept that having heard the figures given today by the Minister of State at the Department of the Taoiseach — and that there is a special need for natural gas in the county to give a fillip to job creation in existing industries and in attracting other industries to the constituency?
I am aware of the unemployment rate in the County Louth area and I understand the Deputy's strong feelings on that matter. I should like to repeat that Bord Gáis Éireann and my Department are re-evaluating the economics of supplying Dundalk, Drogheda, and surrounding areas, in the light of the decision by the British Government during the summer. Obviously, we will have to wait for the conclusion of these studies to see how we can evaluate the project on a stand-alone basis. We will have to look at the whole viability of the project.
Would the Minister not agree that it is of vital importance that we should maximise the industrial usage of natural gas to substitute for imported heavy fuel oils, and that where we have industries using vast quantities of imported heavy fuel oils they should be facilitated as quickly as possible? Is the Minister aware that natural gas would be an exceptionally valuable source of energy for Premier Periclase in Drogheda, an industry which is 100 per cent export and which uses 100 per cent native raw materials, and which has 250 employees mainly skilled workers? Would he not agree that the supply of natural gas to that industry could be used in substitution for £6 million worth of imported fuels?
There are a number of questions there. I am aware of the importance of the availability of natural gas to Premier Periclase. I saw that as one of the major projects which would get a supply of gas from the spur line. The Deputy will be aware of my statements during the summer in relation to my desire to have a natural gas expansion programme carried out as quickly as possible. The Deputy will accept that the situation has changed somewhat from the position a number of months ago. We would be foolhardy if we were to proceed without having an evaluation done of the Dundalk and Louth projects on a stand alone basis.
May I ask one final supplementary? Does the Minister agree that the repudiation of the natural gas deal with Northern Ireland by the British Government was deplorable, but that we should not accept the decision as final? In these circumstances would it not be reasonable to advance the pipeline immediately to the Border in order to facilitate its extension into Northern Ireland when the time is ripe to do so?
I have already made my own feelings known publicly and the feelings of the Deputy's party were made known publicly by Deputy Reynolds during the summer on the breakdown in the negotiations and the repudiation of the memorandum of understanding. I do not think the Deputy would encourage me to bring a pipeline as far as the Border because I would not be in a strong position to negotiate with the British Government. If we had taken it that far, that would weaken our negotiating position. I appreciate the urgency from the Deputy's point of view of assessing and if possible bringing natural gas to Louth.
The remaining questions will appear on tomorrow's Order Paper. Deputy Noonan (Limerick West) sought and has been given permission to put a Private Notice Question to the Minister for Agriculture.