Vol. 362 No. 6
asked the Minister for Energy if he is prepared to review his pricing policy for natural gas especially for labour-intensive and high energy user industries in order to protect jobs, increase competitiveness and develop new Irish industry such as horticulture and if he will make a statement on the matter.
13.
asked the Minister for Energy if he will accept that the availability and pricing of natural gas should now be regarded as instruments of a much broader economic strategy to provide a badly needed boost to our flagging economy and if he will publish a five year plan showing the development of usage and distribution of natural gas to the different sectors of the economy.
I propose to take Questions Nos. 12 and 13 together. Government strategy is already designed to exploit our national gas resource so as to maximise the benefits to the economy. The primary objective is to capture the markets inherently suitable for natural gas and to provide the necessary infrastructure to achieve this. Considerable progress has already been made in developing our gas supply network and the decisions to extend supplies to Clonmel, Limerick and Waterford mark a further advance. Also, as part of the phased development of the network, gas supplies are being made available to existing pipelines and within utility supply areas.
As I indicated on 31 October last in reply to a question by Deputy Collins, it has been the established policy of successive Governments that natural gas should be sold at market prices. This produces the most favourable allocation of the gas both for the purpose of displacing more expensive oil product imports and of providing an income to the Exchequer which benefits the economy as a whole.
I would add that an examination of the long term development of the gas industry is currently in hands and future policy regarding depletion of the remaining Kinsale Head reserves will be decided in the light of this examination. Given the continuing exploration effort and the need to adopt to changing market conditions, I would take the view that at this stage it is preferable to work to an overall policy framework rather than being tied into a fixed five-year plan, in a changing energy scene where all options and policies have to be continually examined.
I take it that the Minister does not intend to get into forward planning in relation to the distribution and allocation of natural gas, which rather surprises me. In any five-year plan there can be adjustments along the way as more reserves some on stream. Towns and areas interested in getting a supply of natural gas have no idea where the Department see themselves going over the next three to five years. That is regrettable, if we are interested in long-term planning in relation to the economy and using natural gas to benefit the economy by reducing industrial costs and providing jobs. It is very disappointing that three years after the completion of the pipeline to Dublin there have been no natural gas spurs. Would he accept that this is very disappointing in an area which was open for immediate development to provide jobs, generate more revenue for the Exchequer and reduce energy costs?
On the contrary, the announcements made in October and November 1982 were somewhat premature——
They were not.
——because the planning was not in place for the extension of the pipeline.
Turn up the files.
The important thing is that progress has been made and that the extensions will take place. As I clarified in an earlier question, when the consultants' report is available early in the new year and taking into account the overall strategy for the completion of the Kinsale Head field, the people whom the Deputy feels cannot make forward planning decisions in relation to the supply of gas will be in a better position to go ahead with strategic planning for their energy supplies as we will have allayed their fears in that regard.
Does the Minister intend to change the very fixed policy which operates at present?
The present policy stands.
