Vol. 400 No. 9
7 Mr. R. Bruton asked the Minister for Energy whether he has had discussions with Bord Gáis Éireann with a view to framing plans for the phased expansion of gas to the non-gas housing estates in Dublin; and if he will make a statement on the matter.
29 Mr. Flanagan asked the Minister for Energy whether he has had discussions with Bord Gáis Éireann with a view to framing plans for the phased expansion of gas to the non-gas housing estates in Dublin; and if he will make a statement on the matter.
52 Mr. Shatter asked the Minister for Energy the steps he intends taking to have the gas pipeline in Dublin extended to the major parts of County Dublin in which natural gas is currently not available.
147 Mr. Currie asked the Minister for Energy when gas will be supplied to certain housing estates (details supplied) in Dublin 15; and if he will make a statement on the matter.
148 Mr. Currie asked the Minister for Energy when Dublin Gas will provide a service to Lohunda Downs, Clonsilla, Dublin 15, in view of the fact that a main is currently being laid within 60 yards of the estate; and if he will make a statement on the matter.
I propose to take Priority Question No. 7 and Questions Nos, 29, 52, 147 and 148, together.
Bord Gáis Éireann have a statutory obligation to develop and maintain a system for the supply of natural gas on a commercial basis. Accordingly, proposals for the extension of the gas distribution grid are a matter for Bord Gáis Éireann and are assessed by the board in the light of that obligation. I understand from Bord Gáis Éireann that they are currently preparing a register of non-gas estates which will be considered for connection as viable projects are identified.
Would the Minister not agree that in the light of a ban on coal next September, the fact that a quarter of the city does not have the option of converting to natural gas imposes on the Government a certain moral obligation to help extend the mains network? This would give people the opportunity of using the premium and cleanest fuel in the city.
I would be delighted if the natural gas distribution network in Dublin city could be extended so as to be available to every household but that is not the position and is not likely to be the position for quite some time. I would like the House to bear in mind the following facts. The estimated cost of laying the necessary mains and extensions to non-gas estates in Dublin is approximately £60 million. On a house by house basis, the cost would be in excess of £1,000. In addition, householders would have to bear a major part of the cost of changing from existing systems, which would be considerable. Given the likely penetration rates for gas in these estates, Bord Gáis could hope to sell on average not more than 400 therms per house — that is their professional estimate. The return on these sales could not justify the outlay by Bord Gáis Éireann. I would remind the House that the board are a commercial body and are required to achieve a reasonable return on investments of public money.
Would the Minister not agree that the average cost of £1,000 per house is not way out of line with the existing cost which is in the order of £600 per house? Would he not agree that, as the Government, until very recently, were offering 75 per cent grants on the whole job, there is now an onus on them to offer some small contribution to help Bord Gáis extend the network, on the basis of the most commercial prospects first, of course. Would the Minister not make some contribution on behalf of the State?
It is unwise to suggest that the solution is to give a grant, because the cost would be enormous. Suffice it to say that Bord Gáis are carrying out an estate by estate assessment. The cost of the work will vary and in some estates it may be more economically viable to carry out the extension. As I stated at the outset, my wish is that all of the housing estates in Dublin would have the natural gas option — I have given the costs involved. It is going to be a step by step process but, I as Minister, and the Government are anxious to see that achieved. Responsibility will be with Bord Gáis Éireann who have to operate within certain commercial restraints. I suggest to Deputies who have individual estates in mind — representations have been made to Bord Gáis Éireann and to me in this matter — that rather than make representations to me, they should approach the sales manager of Bord Gáis Éireann who will be quite willing to go into the costs involved and the possibilities of extending the gas pipeline to certain housing estates. I would prefer if Members of the House availed of the offer by Bord Gáis Éireann in this regard rather than seek to use ministerial intervention to get Bord Gáis Éireann to extend the pipelines in these cases. I am sure the House will recall the many occasions on which it has deprecated unnecessary interference by Ministers in the work of State bodies.
I again appeal for brevity.
Is it not the case that ministerial intervention has forced the conversion on householders? The net effect of what the Minister is saying is that the householder will have to carry this cost entirely.
An Bord Gáis are examining each housing estate in Dublin to see what the cost would be and whether it would be economically viable, taking all factors into account, including the probable uptake of gas in those areas.
