Steel Prices.

Dáil Éireann Debate, Tuesday - 18 May 2004

Tuesday, 18 May 2004

Questions (107, 108, 109)

John Bruton

Question:

120 Mr. J. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment if, in her role during the Irish EU Presidency, she will seek that China cease its embargo on coke and steel exports in line with agreements within the World Trade Organisation in order to increase the worldwide supply of raw materials, thereby leading to a reduction and stabilisation in the price of steel which has increased by more than 25% in the past four months; and if she will make a statement on the matter. [14295/04]

John Bruton

Question:

125 Mr. J. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the fact that in recent months the availability and cost of steel has become extremely volatile, resulting in a scarcity of supply and in rapidly rising costs of up to 25% in the last quarter which in turn is adding up to €10,000 to the cost of a new apartment; if she will raise this growing concern at EU level; and the actions she can take to ensure that suppliers of steel products are not permitted to take advantage of the vulnerable situation by profiteering; and if she will make a statement on the matter. [14304/04]

John Bruton

Question:

127 Mr. J. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment the impact of the massive increase in steel prices over the past quarter on the competitiveness of the Irish economy in the view of the fact that steel is a key component in construction and manufacturing projects; the action she is taking to try and control the price increases; the impact this will have on the Government proposals to introduce fixed price contracts; and if she will make a statement on the matter. [14310/04]

Written answers

Minister of State at the Department of Enterprise, Trade and Employment (Mr. M. Ahern)

I propose to take Questions Nos. 120, 125 and 127 together.

I understand that world steel prices have risen substantially, due primarily to economic growth in producer countries such as China, where increased home market demand has led to a reduction in the volumes available for export. At European level, trade related issues in relation to steel and coke fall within the ambit of the common commercial policy. The European Commission, with advice from the EU member states including the Irish Presidency in the Art.133 committee, represent EU interests and engage with third countries and international organisations, such as WTO, to resolve disputes. Such engagement is ongoing currently in relation to trade in steel and coke.

With regard to the impact on competitiveness and the Irish economy, it is not apparent that developments in relation to steel pricing have given rise to movement in tender prices or have specifically impacted on the cost of apartments or manufacturing projects. Hyper-inflation in market prices of construction materials will be considered in the context of the development of Government policy on fixed price contracts. Suppliers of steel products are subject to the same business and consumer regulations as every other supplier of goods and services in Ireland, including competition law.