Dáil Éireann debate -
Thursday, 15 Feb 2001

Vol. 530 No. 5

Adjournment Debate. - Natural Gas Grid.

Mr. Browne

(Wexford): I thank the Minister for coming to the House and I hope he will have some good news for County Wexford. Wexford seems like an island at present in relation to natural gas supply in that it is surrounded by counties that already have the gas supply such as Waterford, Carlow, Kilkenny and Wicklow. We have no problem with this because it is good that the natural gas grid is extended to these counties. When I drive up and down the road every day of the week I see the pipes being extended to Arklow, which is a good development in view of Arklow's past unemployment problems.

Will the Minister of State explain why natural gas has not been extended to County Wexford? The figures speak for themselves. The unemployment rate in the county is 8% to 9% at a time when the national rate is 3% to 4%. The Tánaiste and Minister for Enterprise, Trade and Employment established a task force last year to deal with the county's serious unemployment problem. One of its main recommendations was that natural gas should be extended to Wexford to help to entice industry to the county. There has been no response from Bord Gáis Éireann.

It is important the Minister of State recognises the serious problems in the county. There is a perception that Wexford is a booming county. However, in a report published this week Mr. Peter Bacon – the Government has acted on previous reports by him – states:

The structure of County Wexford's economy is posing many challenges. In overall terms the county has not fared well in attracting high technology industries. Indeed, the industrial structure is characterised by many traditional sectoral enterprises with low productivity and low value added.

The agriculture sector faces serious adjustment problems and the scope for related sector economic growth is very limited. Tourism has been sluggish and because of its overall economic structure disposable income levels in County Wexford are among the lowest in Ireland.

The Minister of State will see that we have major difficulty in County Wexford in dealing with the unemployment problems and with the present industries. In the last three years, despite the Celtic tiger and the announcements of thousands of jobs around the country, there has been no decent jobs announcement for the county. That speaks for itself.

It is very important that the gas network be extended to County Wexford. A number of inquires have been made by the IDA, FÁS and the county development board. Many industrialists are asking why there is no natural gas network in the county and what are the future plans in that regard.

I have discussed this with the Minister of State on a number of occasions. It is important County Wexford ends its isolation and that the Minister of State considers extending the network spurs to the county. Given that the network has been extended to Arklow it can be further extended to Gorey. It can also be extended from Carlow via Enniscorthy to Wexford and from Waterford/Kilkenny to New Ross. There are a number of options for BGE to consider. I ask the Minister of State to use his skills to ensure that the natural gas grid will be extended to County Wexford as a matter of urgency.

Minister of State at the Department of Public Enterprise (Mr. Jacob)

I compliment Deputy Browne for raising this important matter on behalf of his constituents. I wish to make it clear that I have no function in relation to the matter raised by the Deputy. The question of which individual towns will be connected to the natural gas network is a matter in the first instance for pipeline developers, be it Bord Gáis Éireann or private sector developers.

Where a developer has decided on a pipeline route and which areas and towns are to be serviced, the proposal is submitted to my Department for regulatory approval under the Gas Acts. In addition, in the case of proposals by BGE, I must also give approval for the expenditure involved in my capacity as shareholder. In approving pipeline proposals I can attach conditions in relation to safety and environmental considerations. However, I must emphasise that I cannot determine what towns along its route are to be served by spur lines. This is a matter for the pipeline developers and will be made by them on the basis of commercial criteria.

However, I can update Deputy Browne with regard to the work undertaken to date. BGE is committed to extending the natural gas network to as many areas as possible, provided this can be done in line with its commercial mandate under the Gas Acts. BGE has informed me that the latest future transmission plans show the necessity to construct a transmission main from the Cork-Dublin pipeline to an above ground installation at a central point in County Wexford. Technically this could make way for supplying gas to the largest towns, that is, Wexford, Enniscorthy and New Ross. However, I must emphasise that construction of the required transmission and distribution mains would be dependent on the project being economically viable and is a matter for the company.

A detailed study and preliminary distribution design of Wexford town was completed by BGE in 1996, but at the time it was established there was insufficient load to justify a transmission extension. I understand that the prospect of extensions to the natural gas grid is under active review by BGE as part of a national study to determine centres that can be supplied with gas on an economic basis. The question of gas supplies to towns in the Wexford catchment area is a matter for BGE to examine in assessing the economics of extending the transmission and distribution networks. When this assessment has been completed BGE will have a fuller picture as to the viability of such extensions. I have asked the board to let me have detailed analysis of these options as soon as it is available.

I fully appreciate Deputy Browne's deep interest in this matter, which he has constantly raised with me. I also understand his desire to secure the extension of the natural gas network for his constituency. I trust that the outcome of the BGE exercise will be positive as far as extending natural gas to County Wexford is concerned.

The Dáil adjourned at 5.10 p.m. until 2.30 p.m. on Tuesday, 20 February 2001.