asked the Minister for Energy if he has had any recent meetings with the principals of Aughinish Alumina on the question of supply and pricing of natural gas to their plant in Limerick in order to secure 800 jobs there; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Natural Gas.
20.
On 28 January 1986 the Minister for Industry, Trade, Commerce and Tourism and myself met the principals of Aughinish Alumina. A statement was issued afterwards indicating that the meeting had been a constructive one and that an understanding had been reached on a wide range of issues. The statement went on to say that all parties were to give further consideration to the issues and had agreed to meet again in the near future. I have nothing further to add to this at this stage.
Is the Minister now satisfied that Aughinish Alumina will continue in business in the Shannon region, that any action required on his part or that of his Department has now been taken to ensure its continuance and the preservation of the 800 jobs involved?
The Deputy has posed two questions. In reply to the latter I would say that, from the point of view of the Irish Government, from the point of view of my Department and the Department of Industry, Trade, Commerce and Tourism, we have had a very constructive approach to the difficulties being experienced by Aughinish Alumina. From the point of view of the company generally and their future in the Shannon estuary, one has to accept that they have major problems, many of them pertaining on a world wide basis because of the world-wide depression in the aluminium market. They have a number of aspects to put in place before they can restore their marketing position. From our point of view and that of the plant in Limerick the company acknowledge that the Irish Government are being constructive in their efforts to remedy their difficulties.
Would the Minister agree that the largest single factor under which they operate at a total disadvantage vis-á-vis their other plants around the world is that we are so far removed from the raw material that has to be imported from Guinea in West Africa? Secondly would he agree that our energy costs are way out of line with those they must pay in Quebec, Jamaica or Australia? For that reason is the Minister satisfied that the company now believe that there is the commitment required on the part of the Irish Government, within limits — I am not talking about giving away natural gas for nothing or anything like that — that we are prepared to make a significant contribution so that if anything should happen down there the closure of Aughinish Alumina will not be the fault of anybody in this country?
I had hoped I had reassured the Deputy that his latter suggestion is in the negative from our point of view. Our approach has been constructive. The Deputy mentioned a number of factors, but there are others in relation to the difficulties being experienced by the company. There are pluses from the point of view of the plant in the Shannon estuary, the pluses being that it is the most modern and probably the most efficient plant they have. Overall I would have to say that any efforts on the part of the Irish Government to assist the company will be dependent for their eventual success on the outcome of market trends. I can assure the Deputy that our approach has been constructive. With a meeting in mind in a number of months hence our approach will continue to be constructive in the interests of saving jobs in that plant.
I am glad to hear the Minister say that the last meeting was constructive because serious concern had been expressed about the previous meeting, that it was not constructive. Certainly that was the view of the international people in charge. Would the Minister accept that there is such over-capacity in the Alumina business that some plant of the four I mentioned will have to go and that we must be very careful in relation to our handling of the position to ensure that it will not be the one in Ireland that must go?
I can assure the Deputy that I am being extremely careful, given the seriousness of the situation. But I would have to refute any suggestion that meetings we have had with this company have been anything other than constructive.
I am not making any false allegation against the Minister. I also met the people subsequent to their meeting with the Department. I am not adding to or subtracting from what was said to me. They were totally disillusioned with the approach adopted at that meeting. I am glad to hear from the Minister that the last meeting was more constructive.