Dáil Éireann Debate, Thursday - 17 June 2004
30 Mr. Sargent asked the Tánaiste and Minister for Enterprise, Trade and Employment if her Department has carried out a review of the implications for industrial policy here of the doubling of oil prices in the past two years and the likelihood of further dramatic increases in energy prices as a peak in worldwide global oil production is being approached. [18135/04]
View answerOil has traded at significantly high levels for some months. Crude oil prices have fallen back slightly from their recent high level although market volatility and concerns about supply and demand issues could mean that relatively high prices will remain a feature of the international oil market.
My Department does not propose to prepare a report on the implications of the present increase in oil prices. The Department of Finance shall take the matter into account when preparing its economic review and outlook. The report is due to be published later this year.
The International Energy Agency has warned that a sustained increase in oil prices will have an adverse effect on GDP and inflation in Eurozone economies. We have no control over international factors that influence world oil prices. Their impact re-emphasises the critical importance of strengthening competitiveness. Our ability to adapt and remain competitive is a key issue for Ireland in the face of adverse global economic conditions.
