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Seanad Éireann debate -
Thursday, 17 Dec 2009

Vol. 199 No. 9

Appropriation Bill 2009 [Certified Money Bill]: Committee and Remaining Stages.

Sections 1 and 2 agreed to.
SECTION 3.
Question proposed: "That section 3 stand part of the Bill".

The section refers to the reduction in excise duty on alcohol. The Minister wants publicans to reduce the cost of alcohol immediately. Is it correct that if they do not pass on the reduction immediately, he will revoke this measure?

I understood the Minister to have urged publicans to pass on the reduction in duty. He did not threaten to reimpose the duty immediately but if after a period, the reduction appears not to have been passed on, he reserves the right to restore the status quo.

Does the Minister support a refund of excise duty to wholesalers, considering they had paid excise duty at the previous rate? Publicans will reduce the price. Does the Minister of State support a refund for wholesalers? This is a significant industry and a number of jobs will be put at risk if wholesalers are expected to carry an overdraft to pay the excise duty on behalf of the State. I presume the Department of Finance and the Revenue Commissioners would fully support a refund.

I am always amazed at the way Opposition Deputies and Senators try to lead me on to dangerous ground. I am familiar with the problem in my constituency. A wholesaler visited me last Saturday with the problem raised by the Senator but there are no plans for a rebate.

This is a difficult issue and I had hoped we could pass the Bill without a division but the Minister of State should clarify this for wholesalers.

Separately, I refer to the carbon tax. County Wexford has significant industries and a major hospital but they have no access to natural gas. However, they will be hit with a carbon tax, which will mean they will be unable to compete with companies in Dublin and Cork which have access. The Government is placing an additional burden on significant industries in County Wexford. No allowance has been made for the fact that they cannot use natural gas as an alternative. Bord Gáis does not supply the county even though the company in a report about the energy requirement of County Wexford to justify bringing natural gas there highlighted that in Wexford town a few companies such as Nutrena, Celtic Linen, Wexford Creameries and the hospital on their own use twice the energy Bord Gáis set as its threshold to supply the county. This has not been mentioned.

The Senator is straying from the section.

While I accept the problems outlined by the Senator, it is not possible to differentiate geographically in the imposition of taxes but perhaps the situation will provide an incentive for the development of new lines of supply to the county.

We at least need Government support to ensure Bord Gáis moves in that direction because the company has shown no interest in providing natural gas to Wexford town. It will build a pipeline to the power generating station near New Ross but that is as far as the company will go.

Bord Gáis is gradually extending its network nationwide. A few towns in County Tipperary — Cahir and Cashel — are being added to the network and there have been developments in the west and north west. It may just be a question of time.

Time is something industries in Wexford do not have. The carbon tax will be introduced on 1 January.

We are straying from the section. The Bill was passed without debate in the Dáil and we will have a wider debate on the economy when the next Bill is taken. We would all like natural gas. Under the Gas Acts, Bord Gáis has a commercial mandate and the company chooses to extend its network on that basis. The Senator is seeking a ministerial announcement. However, I recall the chairman of Sligo Chamber of Commerce securing a commitment from a former Minister of State, Mr. Joe Jacob, regarding the supply of natural gas to Sligo but sadly, it has not happened yet. Government subvention will be needed to extend the network throughout the country. I hope that with budgetary measures such as those we are passing today more finance will be available to allow the Government provide a subvention for Bord Gáis which has to operate with a commercial mandate to extend the gas network to the entire country. I look forward to this and would like to see it included in the Bill, if possible.

Question put and declared carried.
Section 4 agreed to.
Schedules 1 and 2 agreed to.
Title agreed to.
Bill reported without recommendation, received for final consideration and ordered to be returned to the Dáil.
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