asked the Minister for Industry and Commerce if he will state the price for coke on the 1st January, 1967; the amount of any price increases which he has since allowed; and the reason for such increases.
Ceisteanna—Questions Oral Answers. - Coke Prices.
76.
The only increases in the price of coke approved by me since 1st January, 1967, have been for the Alliance and Dublin Consumers' Gas Company, the Monaghan Lighting Co. Ltd. and, in the case of Welsh Foundry coke, the Dublin Coal Importers.
As regards the Alliance and Dublin Consumers' Gas Company the price of coke on the 1st January, 1967, was £10. 16s. 0d. per ton. An increase of £1. 0s. 0d. per ton was allowed on 19th February, 1968. This increase was due to the effect of devaluation on the price of Polish coal. A further increase of £1. 9s. 0d. per ton was allowed on the 19th December, 1968. This increase arose from the fact that oil has now largely replaced coal in the manufacture of gas and the company has to supplement its own production of coke with dearer imported coke, all coke being sold by the company at an average price of £13. 5s. 0d. a ton.
As regards the Monaghan Lighting Co. Ltd. the price on the 1st January, 1967, was £10. 0s. 0d. per ton. An increase of £3. 11s. 3d. was allowed on the 14th August, 1967 due to the fact that the company changed over from coal to propane in the production of gas, and coke had to be obtained from Dublin.
In the case of Welsh foundry coke sold by the Dublin Coal Importers the price on the 1st January, 1967, was £17. 9s. 0d. per ton. An increase of £1. 6s. 0d. per ton was allowed on 29th January, 1968. This increase arose from an increase in the f.o.b. price by the British National Coal Board. A further increase of 4s. 6d. per ton was approved on the 11th December, 1968, due mainly to wage increases.
I may not have heard the Minister properly but I thought he said that the price of coke was increased in December by the Alliance and Dublin Consumers' Gas Company because of the fact that they had to import it. Would I be right in that?
Yes, an increase of £1 9s per ton was allowed on 19th December.
Because of the fact that they had to import it?
That is right. They had to supplement their coke by importing dearer coke.
For what purpose would they have to import coke?
To supply the demand.
Yes, but would the Minister not agree that coke is merely a by-product of gas manufacture and they are not suppliers of coke essentially, they are gas producers? Would that be right?
I think that is correct.
I do not see the reason for allowing an increase just so that they can supply certain demands. I do not think that is a valid reason for increasing the price of coke.
How does the Deputy suggest the demand should be supplied?
Could the Minister tell us how the price in Ireland compares with the price in Britain?
The Deputy will have gathered that there are different prices for different grades of coke. I think he may have missed the point in regard to the supply of coke by the Alliance and Dublin Consumers' Gas Company which is that there is a demand which they have to meet and with the switching over to oil they are producing less and less coke themselves and in order to meet the demand which still exists but is decreasing they have to import coke to supplement what they produce themselves.
The Minister says they have to meet the demand?
In the sense that the people who have to get coke, if they did not get it from them, would import it directly.
So, like the wheat, they bring in coke and add it to the home produced and add it on to the price.
In view of the Minister's reply will he now take steps to see that all native coke which is the by-product of coal from gasworks will be utilised before any imports are allowed because we have the experience in Limerick that at the Limerick Corporation Gas Works we have mountains of coke and we cannot get rid of it. Would the Minister like to comment? I am not pressing him.
Would the Minister like to comment?
I am not aware of the position being as the Deputy states. I would be particularly interested if that were so.
It is true.
All I am aware of in regard to the situation in Limerick is that the price of coke from 1st January, 1967, was £12 5s per ton and that has been increased to £14 due to an increase in wages and coal prices. I am not aware that there is any surplus of coke available. In fact as the Deputy will be aware with the switchover in most places to oil——
We have not gone to oil.
Most of them are switching over and the amount of coke is reducing all the time. Indeed the demand is reducing too. However if the position is as the Deputy states I would be surprised.
Anybody who wants a mountain of coke should go to Limerick.
Will the Minister investigate the position in regard to coke and tar supplies in Limerick?
I will.
May I ask the Minister if the switchover to oil has resulted in any reduction in the cost of gas? Is that the reason for the switchover?
I would require notice of that. I have ideas but I could not be quite accurate in my reply.