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Dáil Éireann debate -
Tuesday, 11 Jun 1985

Vol. 359 No. 6

Ceisteanna—Questions. Oral Answers. - Cross-Border Gas Link.

1.

asked the Minister for Energy if he is aware of the feasibility study on the gas industry carried out by Coopers & Lybrand and Congas Engineering of Toronto recommending that it would be viable to pipe natural gas across the Border; and if he will make a statement on the matter.

19.

asked the Minister for Energy if he has had further discussions with the Northern Ireland authorities with regard to the sale of natural gas since the collapse of the proposed Northern Ireland/Kinsale gas link.

A Cheann Comhairle, I shall attempt to endorse your words by performance. I propose to take Questions Nos. 1 and 19 together.

Since the UK Government withdrew unilaterally from the Memorandum of Understanding entered into in October 1983 I have had no discussions with the Northern Ireland authorities on the sale of gas to Northern Ireland. At the time of its withdrawal the British Government invited the Northern Ireland gas industry to consider how it might operate in future. I am aware of the report referred to which has been prepared for the gas industry to assess the feasibility of a natural gas project in Northern Ireland. I have not had made to me any other specific proposals on the terms of a gas supply. I have seen from newspaper reports that the Northern Ireland authorities have not accepted the Coopers and Lybrand-Congas proposals but since the matter was considered by them earlier this year there have been substantial changes in oil prices and currency exchange rates which would favourably influence the cost of gas supplied to Northern Ireland.

Would the Minister state what steps he has taken to impress on the British Government the feasibility of this study and to what effect?

What steps?

To impress on the British Government the feasibility of this study and with what effect?

As I said at the outset, I have not had any discussions either with the British or Northern Ireland authorities since the British withdrew from the Memorandum of Understanding in October 1983.

I am rather surprised at that. Is the Minister aware of the vital necessity for a supply of natural gas for the development of industry and horticulture in the Border County of Louth?

Obviously it would be of interest to the County of Louth and surrounding counties in the Border area if a supply of gas was provided to them. I am well aware of that and, as I have said many times in this House, I will do everything possible to facilitate that.

Would the Minister agree that, besides considerably improving job prospects in County Louth a supply of natural gas to the North of Ireland would also save thousands of jobs of Irish men and women north of the Border? Would he agree that the British Government had no justification whatever for the harsh decision they took which will deprive these people of their employment and that that decision portrays a lack of interest by the British Government in all of the people of Northern Ireland, whatever their tradition? Would the Government and the Minister himself — as the responsible Minister — make further efforts to have the British Government reverse their decision in this matter?

Obviously a supply of natural gas would ensure the possible continuation of the gas industry in Northern Ireland and preserve jobs in Northern Ireland but, of course, this is a matter for the Northern Ireland authorities and indeed for the British Government. In October 1983, when the Memorandum of Understanding was entered into, it seemed there was a willingness to go ahead and to save the Northern Ireland gas industry. That does not seem to be the position at present but obviously I cannot speak, nor would I attempt to speak, for the British Government. I have maintained my position. I have been willing to ascertain if we could arrive at a situation in which we could provide gas in Northern Ireland, and that is still my position.

Is the Minister stating that until such time as the Northern Ireland authorities agree to accept natural gas, County Louth will be deprived of it?

No, I am not stating that. As I stated in this House on another occasion, a review is taking place to assess the feasibility of having a supply of gas to the eastern seaboard and, indeed, to the Border counties on a stand alone project. That review has not been completed. On completion I will be informing the House of its feasibility.

A final supplementary.

Could the Minister say if the Government, through the Taoiseach or the Minister for Foreign Affairs, have had discussions with the British Government since the collapse of this deal and would he agree that this was the best flagship of North-South economic co-operation which apparently has now been abandoned by the Government?

I am not aware of any discussions or negotiations since the collapse of the agreement.

So it was not raised at any of the Prime Ministers' meetings, summit meetings or Foreign Affairs meetings?

I am not aware of it.

The Minister would be aware if they took place?

That is amazing. It is an extraordinary situation.

Deputy Reynolds and myself were in accord with our decision not to reduce the price to the British and there has not been a change in that case.

You are keeping the £5 million?

Yes, I am keeping the £5 million?

I am glad that the Minister is keeping it, because the Taoiseach said he will not keep it.

Is money available from the EC to help finance a cross-Border gas pipeline from Dublin to Belfast?

At the moment there is not a cross-Border project for which money can be made available. We were confident that money would be forthcoming from the EC in relation to developing a cross-Border pipeline.

I am calling Question No. 2.

One final supplementary. While the original negotiations were going on was the question of EC finance discussed and what percentage of the cost was to be covered from the EC?

The question starts with the breaking of negotiations.

The Deputy is now going beyond that. Question No. 2.

I am entitled to an answer.

The question starts with a survey that took place subsequent to the breaking down of negotiations. This breakdown of negotiations was dealt with in the House and the Deputy is now re-opening the whole thing. I will not allow that.

The Minister is quite willing to answer and he should be allowed to do so. The discussions on the financing of the North-South gas pipeline and the sort of money involved is of paramount importance to the economy.

If the Minister wishes to answer I have no objection, but I will not allow further questions.

In the spirit sought by the Leader of the Opposition I will try to be helpful. At the time of the negotiations we were confident that substantial aid would be forthcoming from the EC. That position has not changed. At present we are assessing whether or not we can get aid from the EC to have a pipeline going up to the Border counties irrespective of the cross-Border element.

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