I now come to deal with Private Notice Questions in respect of oil distribution. I am taking these questions in the order in which they were submitted to my office. They are questions to the Minister for Industry and Commerce from Deputy Dick Spring and Deputy Proinsias De Rossa.
Private Notice Questions. - Oil Distribution.
I also submitted a question to the Minister for Industry and Commerce on this issue. Will that be allowed now also?
I have a Private Notice Question here from the Deputy which I will be asking him to put later.
Then I will get an opportunity.
Yes.
asked the Minister for Industry and Commerce if he will make a statement regarding the dispute between oil distribution companies and the Government; if he will outline the Government's reasons for imposing the present freeze on petrol prices; and the steps he intends to take to ensure an early settlement of the dispute.
asked the Minister for Industry and Commerce if, in view of the serious threat posed by the decision of a number of oil companies to stop importing petrol, he will indicate the action, if any, he intends to take in relation to the companies' action; what he intends to say to the oil companies at the planned meeting tomorrow; and if he will make a statement on the matter.
When I met the oil companies on 3 March I conveyed to them the Government's concern about the serious implications of an increase in the price of petrol and diesel. The terms of reference will be to hold an inquiry into the conditions which obtain in regard to the supply and distribution of petrol and auto diesel in the State, including the implications for prices of gifts and promotional schemes, the effect on prices of the operation of the INPC and the operation of the Restrictive Practices Motor Spirit and Motor Vehicle Lubricating Oil Order, 1981. This order deals inter alia with company ownership of retail petrol stations. The commission has already sought submissions.It is intended that the commission will submit its recommendations by the summer and these will be given immediate attention by the Government. The Government are reluctant to intervene in the market but did so on this occasion because the increases could undermine the strenuous efforts being made by all sectors of the economy to hold down inflation. We recognise that world market prices are increasing. For this reason I undertook when I met with the oil companies on 31 March that the situation would be continually monitored in consultation with them. As part of this process I am meeting the companies tomorrow. I am shocked that in the meantime, and knowing of the meeting, companies should have made threats against the Irish people to cease to import supplies. This is not an approach that the Government can tolerate. Against the background of world prices everything that can be done within the Irish oil industry to reduce cost must be done and I will be putting this point forcefully to the companies. Beyond that I do not want to go pending my meeting with the companies tomorrow.
I thank the Minister for his response but seek some clarification from him. First, could the Minister clarify what the situation is in relation to the 90 day stocks which the companies are meant to hold at present? Could he clarify to what extent they are fulfilling their obligations? Second, could the Minister clarify to the House what the cost to the consumer is of these stamps and marketing gimmicks used by the oil companies?Third, could the Minister clarify his statement made yesterday on the radio in relation to a possible alternative retail distribution by the INPC or by the Government? Has the Minister some plans in mind in that respect?
In regard to the question of oil stocks, there are other Private Notice Questions being asked of the Minister for Energy, and I have no doubt he will reply in relation to that. We will be discussing the matter of stamps and so on with the companies. There are estimates that they cost between 5p and 6p per gallon and are used as marketing tools by the companies against one another. It is more important at this stage, in the interests of the economy, in the interests of keeping down inflation and in the interests of the consumer, that prices be reduced rather than that these marketing tools continue to be used.
Would the Minister agree that there is virtually no competition in the supply and distribution of oils on the Irish market? Will he indicate whether he proposes to take any steps to break the monopoly which these multi-national oil companies have on our distribution and importation systems? Will the Minister also indicate to the companies when he meets them tomorrow that if they withdraw from this market they will not get back into it?
One of the disturbing aspects of the announcements and threats of the oil companies in the last number of days has been their strength in the distribution area. I will be looking at this matter very carefully because we cannot have a situation where the national interest will be interfered with as a result of attempts by the oil majors operating within the Irish market to hold the country to ransom because of their distribution control. Distribution is a possible role for the INPC to be looked at favourably in the future. I thank the Deputies for their support in relation to measures that can be taken in the future against those who do not co-operate at this critical time.
(Limerick East): In view of the upward pressure on petrol prices, would the Taoiseach consider withdrawing the increase of 6p a gallon imposed by the last budget in circumstances where the House was assured it would not be passed on to the consumer and it was passed on two weeks after the budget? Will the Minister use the Finance Bill as an opportunity to withdraw it?
The Deputy is well aware that the reduction that was absorbed has nothing to do with the present situation. Since then increases have come as a result of world market prices.
I want to advise the House that there are three further Questions on this matter of oil distribution addressed to the Minister for Energy. They are closely related. I want to deal with them also.
(Limerick East): I have a brief supplementary. Is the Minister now confirming that the 6p imposed by the budget is additional to the 14p in the pipeline which is the basis for the conflict now? Are we talking about a 20p in the gallon increase in the price of petrol from budget night to the present day? Are not the Minister and the administration hiding behind a smokescreen? Do we not all know what is happening?
(Interruptions.)
I am now proceeding to deal with the related questions in the names of Deputies Dick Spring, Proinsias De Rossa and P. O'Malley.
asked the Minister for Energy if he will make a statement regarding the current dispute between oil distribution companies and the Government; and, in particular, if he will outline the implications for petrol supplies of a prolonged dispute.
asked the Minister for Energy if, in view of the serious threat to the industrial and commercial life of the country and the jobs of hundreds of thousands of workers, arising from the decision of a number of international oil companies to stop importing petrol, he will outline the steps the Government intend to take to ensure continuity of supply; and if the Government will introduce emergency legislation to allow them to take under their control oil storage facilities and tankers, and to give them power to direct distributors and petrol stations to distribute and retail supplies made available to them by the INPC.
asked the Minister for Industry and Commerce, in view of the threatened disruption of petrol supplies which is already leading to queues at petrol stations and, in view of the meeting scheduled for tomorrow between himself and representatives of the oil companies, the action he is taking to ensure there will be no such disruption; and if he will make a statement on the matter.
I propose to take the Private Notice Questions submitted by Deputies Spring, De Rossa and P. O'Malley together. Deputies will be aware that the Minister for Industry and Commerce has announced that he will be meeting representatives of the oil companies tomorrow and accordingly it would not be appropriate for me to outline at this stage the steps the Government propose to take to ensure continuity of petrol supplies. Similarly, it would not serve any purpose at this point in time to speculate on the implications of a prolonged dispute over pricing issues on petrol supplies until the nature of any problem that might arise in the future can be further assessed. In a statement issued earlier this week I described the decision by certain oil companies to suspend importing petrol stocks as unnecessary and regrettable. I pointed out, and I want to re-emphasise it here today, that stocks are adequate for the foreseeable future and that supplies of auto diesel, gas oil, home heating oil and fuel oil are not affected by the oil companies' decision. There is therefore no immediate or pending cause for concern on supplies. Furthermore there is no international shortage of crude oil products and Whitegate refinery will continue to supply the Irish market.
Could the Minister confirm to the House exactly what supplies are in reserve by the companies in Ireland at present, given the requirement to hold 90 day stocks? Have the Minister or his Department had discussions with the INPC in relation to a possible alternative oil distribution system here?
I have emphasised to this House on a number of occasions that the Government continue to meet their EC obligations in regard to 90 day stock requirements. This problem however is not in that area. I want to emphasise that there are no shortages and that the facilities are available from the point of view of shipping, importing and operations at Whitegate to ensure that no such difficulties will arise. It would be totally inappropriate for me to outline the features of a plan which I and the Government would put into effect in the event of this situation deteriorating just 24 hours before the Minister for Industry and Commerce meets with the representatives of the oil companies.
I am pleased to hear the Government have a plan to implement in the event of a crisis. Would the Minister agree that part of the reason the oil companies have this power over us is that we only refine 50 per cent of our oil needs through Whitegate and that part of the Government's long-term response at least to this situation would be the siting of a second refinery which would ensure that we could refine 100 per cent of our oil needs? Will the Minister accept also that there is urgent need for the INPC to establish an independent network of distribution independent of the multi-national oil companies as a further step in preventing us being held to ransom and our economy brought under assault by these companies?
The question of additional refining facilities is totally separate to this matter. I have no wish at this stage to get involved in debating in the House matters which may relate to developments which could take place in the future. I will just emphasise that we have extensive powers for change in relation to these particular areas, should that change be necessary.
I would like to ask the Minister if the Whitegate Refinery, which I understand is at present running at only about half capacity, were to run at full capacity would it produce enough petrol, or what percentage of the Irish market would it serve? In the event of the oil companies maintaining the attitude they have adopted in the last few days, and if we are forced to take supply from Whitegate because it is not coming from any other source, what contingency plans, if any, has the Minister for the distribution of that product to the retail outlets which is where the major problem would arise in relation to taking supplies from Whitegate?
I have said already that I have no wish to go down the road of discussing plans that may or may not be necessary to be put into effect in the event of the deterioration of this matter. We do not have the pessimistic views about these matters the Deputy tends to have. It is no secret that the INPC in Whitegate could quite dramatically increase output should that be necessary.
How would they get——
Order. I will hear brief questions from Deputy Spring and Deputy De Rossa.
I will be very brief. I can understand the Minister being reticent in relation to giving out information on the day prior to meeting the oil companies, but can I take it from what he is saying that he is assuring the House that we satisfy the EC requirement of a reserve of 90 day stocks of petrol?
As I said earlier, I have consistently informed the House that the Government have met their obligations in this regard and should any circumstances develop where they would be threatened, we have extensive powers to deal with them.
The Minister has stated that he does not want to speculate on what may have to be done if the situation changes. Surely he must accept that the situation has already changed by the mere fact that these companies have made a threat against the State. We must take urgent steps to extricate ourselves from the position where these people control the distribution network and the importation of virtually half our supplies of petrol.
I have indicated already that should the situation deteriorate we are in a position to put in place features of a plan which would ensure that the commercial and industrial life of this country, which depends on the consistent flow of this product, is not affected. I have no wish to add to that at the moment. I do not think this House should be debating five Private Notice Questions in relation to this matter just hours before a very crucial meeting takes place.
Rubbish.
Would the Minister confirm that it is still the position that a very significant part of our stocks are held overseas by these same oil companies and are not immediately accessible to the Government?
That is a secret.
I can confirm that a certain amount of our stocks are held overseas——
By the companies.
——and that I have extensive powers, should it be necessary, to repatriate those stocks.
Can you get the tanks over there when you need them?
I want to emphasise again that this is not a question of not being able to get supplies. There is no international shortage. It is quite possible for the Government to negotiate with a variety of companies totally unlinked to the people who are at present in dispute with the Government. I want to re-emphasise that: it is quite possible to negotiate separately with a number of companies should the situation deteriorate.
The Minister had better head for Moscow.
I do not have to go that far.
That disposes of questions for today.