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Tuesday, 30 Apr 2013

Written Answers Nos. 373-378

Exploration Licences Numbers

Questions (373)

Bernard Durkan

Question:

373. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the number of oil, gas or other mineral exploration licences issued in each of the past five years to date; the number of such options already taken up by the applicants; the extent to which commercially viable deposits have been discovered; the economic benefit accruing therefrom; and if he will make a statement on the matter. [20406/13]

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Written answers

The number of Mineral Prospecting Licences and Petroleum Exploration Licences granted in each year between 1 January 2009 and to date in 2013 is set out in the following table:

Licences granted during period 2009 – 2013 (to date)

Year

Prospecting Licences (Minerals)

Petroleum Exploration Licences

2009

66

1

2010

93

0

2011

98

2

2012

102

0

2013

7

0

Total

366

3

While there have been no new commercial discoveries of oil or gas in the Irish onshore or offshore in the past five years, the drilling of an appraisal well on the Barryroe prospect in the Celtic Sea has shown encouraging results. More work will be required to determine if the discovery is actually commercial. It is not clear at this stage how long this process will take. While no new commercially viable deposits of minerals have been discovered recently, there have been some encouraging results, particularly in Counties Limerick and Clare. However, it is too early to determine whether these results will lead to identification of commercially viable deposits or to estimate the economic benefits that might accrue.

Alternative Energy Projects

Questions (374)

Bernard Durkan

Question:

374. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the extent to which alternative energy electricity generation capacity is available to the national grid; the proposed targets in this regard for the future; the extent to which this is in line with EU targets; and if he will make a statement on the matter. [20407/13]

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Written answers

Ireland currently has 1,763 MW of installed wind generation, 238 MW of hydro power and 71 MW of smaller renewable sources (ocean energy, combined heat and power, solar and bio-energy). In 2012, this installed renewable generation capacity met 17.3% of overall electricity demand. As regards proposed targets for the future, under the Renewable Energy Directive, Ireland is legally required to increase renewable energy from 3.1% in 2005 to 16% in 2020, with a minimum legally binding target of 10% in the transport sector. Energy is consumed across the transport, heating and electricity sectors. The intention is to reach Ireland’s overall target through 40% renewable electricity, 10% renewable transport and 12% renewable heating, which together amount to 16% of all energy consumption.

Question No. 375 answered with Question No. 120.

Postal Services

Questions (376)

Bernard Durkan

Question:

376. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources his preferred options for the ongoing development of An Post as an integral part of the communications network, with particular reference for the need to retain the structure of post offices, sub-post offices and counter services throughout the country and incorporating any suitable extension of complementary services which might enhance the viability of the system and continue to provide a vital services in both urban and rural areas, including next day delivery services throughout the country; and if he will make a statement on the matter. [20409/13]

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Written answers

Operational matters in relation to the post office network are matters for the management and board of An Post and one in which I have no statutory function with regard to such matters. As shareholder, however, I have a strong concern in relation to the ongoing commercial position of the Company. I regularly liaise with the Company in this regard. An Post has many strengths and has the largest retail presence in the country. I have impressed on the Company the need to further exploit its unique position in this regard. I have been supportive of its attempts to diversify its income streams and win a wider range of commercial contracts offering higher margins. I welcome the progress An Post has made towards diversification with its enhanced arrangement with AIB and its agreement with Aviva for the transfer of Aviva Ireland’s branch offices personal insurance business book to One Direct. In the context of the public sector transformation agenda, I will continue to engage with my colleague, the Minister for Public Expenditure and Reform in relation to consideration, as appropriate, of the post office network for transactional elements of the business of Government Departments and Agencies. I have stressed to my Government colleagues that the network is ideally configured for over the counter transactions.

While I have overall responsibility for the postal sector, the Communications Regulation (Postal Services) Act 2011 charges the Commission for Communications Regulation (ComReg), as the postal regulator, with the promotion of the development of the postal sector and particularly the availability of the universal postal service, the promotion of the interests of users and the facilitation of the development of competition in the sector. ComReg is in regular contact with my Department. According to the Act, An Post is statutorily required, as the designated universal service provider, to provide a universal postal service. The essential element of this obligation is the collection and delivery of mail to every address in the State on every working day. The universal service obligation ensures by way of regulatory obligations that a minimum set of services is provided at an affordable price for the benefit of all users, irrespective of their geographical location. It is a fundamental principle of the regulatory framework for postal services and is an explicit requirement of the EU Postal Services Directive which has provided for the gradual and controlled opening of the postal services market to competition.

Question No. 377 answered with Question No. 101.

Fuel Prices

Questions (378)

Bernard Durkan

Question:

378. Deputy Bernard J. Durkan asked the Minister for Communications, Energy and Natural Resources the extent to which petrol and diesel prices at filling stations here are comparable and competitive with those applying throughout Europe; and if he will make a statement on the matter. [20411/13]

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Written answers

The European Commission maintains a Statistics and Market Observatory, which presents consumer prices and net prices (excluding duties and taxes) of petroleum products in EU Member States (known as the Oil Bulletin) on a weekly basis. The Oil Bulletin is designed to improve the transparency of oil prices and to strengthen the internal market. The relevant link is http://ec.europa.eu/energy/observatory/oil/bulletin_en.htm. In addition to the weekly oil bulletins, the Commission also, on a less frequent basis, produces three maps of Europe with the euro prices for petrol, diesel and the varying national tax take for these two products in each of the 27 EU Member States. The maps currently provide the clearest overview comparison of the price differences between Member States.

The oil bulletin of 15 April 2013 shows the price of petrol in Ireland was €1.62 per litre including taxes and duties, while the price of diesel was €1.55 per litre including taxes and duties. The weighted EU average for the EU 27 for the same week was €1.59 per litre for petrol including taxes and duties and €1.45 per litre for diesel including taxes and duties. A separate analysis relating to the Euro area only (17 Member States) shows the weighted average price for petrol was €1.62 per litre and for diesel was €1.43 per litre. As can be seen from the reports on the European Commission website, prices in EU Member States and the weighted averages fluctuate on a weekly basis. While Ireland's diesel prices in that particular week were higher than the EU average, our petrol prices were comparable with the weighted average in Euro area countries. There have also been times in the recent past when Irish prices have fallen below the European weighted average.

I have no statutory function in the setting of oil prices. The price paid at the pump by consumers is largely determined by taxation levels, the internationally traded price of crude and the consequent price the refined product is traded at in Europe, and the level of competition in the retail market. The Irish oil industry is fully privatised, liberalised and deregulated and there is free entry to the market. Upward trends in global oil prices underscore the Government’s commitment to delivering national energy efficiency and renewable energy objectives, which are aimed at moving the economy away from reliance on imported, carbon intensive fossil fuels such as oil.

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