Vol. 388 No. 8
asked the Minister for Energy if the Government envisage any increased role for the Irish National Petroleum Corporation; if, in view of the dominant position which a small number of multinational oil companies hold over distribution of petrol and petroleum products, he will direct the Irish National Petroleum Corporation to become directly involved in distribution; and if he will make a statement on the matter.
17.
asked the Minister for Energy if he has plans that the Irish National Petroleum Corporation should enter the retail distribution business for oil products; and if he will make a statement on the matter.
I propose to take Questions Nos. 13 and 17 together.
INPC operations currently encompass the purchase and refining of crude, the supply of 35 per cent of Irish market requirements of petrol and gasoil to the distribution companies and associated trading of intermediate and final petroleum products. There are no proposals or plans in hand at this point in time to involve INPC in retail distribution in the Irish market. The position will, however, be kept under review in the coming months and the findings of the report of the Fair Trade Commission into key aspects of the existing distribution system will be of interest in this regard.
I am disappointed with the Minister's reply. Would he not accept that one of the major problems we faced in recent weeks was the fact that the oil companies who supply at least 50 per cent of the oil products of this country also control something like 90 odd per cent of the distribution network and that so long as we have that situation it will be impossible to break free of the stranglehold these companies have on this economy?
Perhaps the Deputy misinterprets what I said. I said there were no current proposals to involve INPC in the distribution market. I went on to say that this matter would be reviewed in the light of whatever developments take place. We cannot for all time decide whether INPC would stand away from the distribution sector. It may well be decided as to whatever the strategic requirement of the time is, and we are open to ensuring that INPC play the sort of pivotal role they will be required to play in ensuring we have a proper market here. We are not eliminating any aspect of the trade but there are no proposals at present to go in that direction.
The Minister in his reply indicated that to some extent it would depend on the outcome of the inquiry by the Fair Trade Commission. Surely the difficulty there is that the Fair Trade Commission will be looking at it purely from the point of view of whether pricing is fair given the monopoly that exists. The strategic question of whether the multinationals should control the bulk of our distribution system will not be an issue for them. The Minister surely must give us a commitment here that his Government are actively looking at providing an alternative distribution system.
The Deputy is right in saying that the commission will be looking at the pricing mechanisms, but it would be impossible, having examined the pricing mechanisms, not to deduce some consideration as to why we arrived at that situation if distribution is a factor, and obviously it is. If other factors are to be enjoined in that these will be all duly considered by the Government in whatever action will eventually be taken arising from that report.
Having regard to the solus agreements the major oil companies have with private distributors, would the Minister have the right to have his product, the product of Whitegate, distributed should the need arise?
The immediate longer or shorter term proposition in all that area is to ensure that development takes place at Whitegate so that I am putting on to the market the most competitive product possible. There is no better way to go and that is the way I am going.
Despite those solus agreements has the Minister, the right to have his product, the product of Whitegate, handled through those retailers?
I am sorry, I misunderstood the question. I clearly have that right.
The Minister says he clearly has that right. I presume he has it under legislation for emergencies and that it would not be used under normal commercial circumstances. Will the Minister give us a commitment here that he is actively looking at the question of establishing an independent distribution network?
We have had that before, Deputy.
The Minister has not addressed himself to the question.
That may be so, but repetition is not in order at Question Time.
At what price do the multinationals choose to distribute their oil here? They still retain control over the distribution network. Until that is broken we are in their hands.
I think I have gone as far as I can go in relation to that matter.
