asked the Minister for Industry and Commerce if he is aware that in many cases the price of oil for domestic central heating has been increased by over 40 per cent since November 1973.
Ceisteanna—Questions. Oral Answers. - Fuel Oil Supplies.
31.
I am aware that, as a result of increases in world oil prices, there have been increases of over 40 per cent in the price of oil for domestic central heating since November, 1973. Failure to pay these increased prices for oil would have placed the country's oil supplies in serious jeopardy.
Can the Minister state if additional increases are anticipated?
I cannot claim access to special knowledge. There is the publication of oil prices in Holland and there has been published information about oil auctions in Kuwait and other places where there is evidence that a price decline is taking place. The Deputy will be aware that at a recent auction in Kuwait the prices desired by the vendors were not reached and, as a result, the auction was abandoned.
Having regard to information the Minister gave us in an earlier reply, can he state if there is a certain element in the price that is a tax on the Irish people which goes to the British Government?
My understanding is not such; there is not such an element. However, it is a highly specialised and difficult area; I do not claim to understand the different categories of prices. If the Deputy would like to put it down as a separate question, I shall be glad to try to get an answer for him on the matter.
32.
asked the Minister for Industry and Commerce the amount the increased cost of oil will add to this country's import trade figures in the current financial year and in a full year, based on expected deliveries.
The subject matter of the Deputy's question goes far beyond the scope of my Department's responsibilities and there are so many uncertainties in this situation that any figures given must be highly speculative and the margin of error wide.
Subject to these caveats I can say that it has been estimated that the net direct effect of the increased cost of oil could be to put up our total annual import bill by about £100 million, with a pro rata effect for any shorter period.
33.
asked the Minister for Industry and Commerce the reason for the discrepancies in the price increases allowed on motor spirit and fuel oils to the different oil companies in December, 1973.
Acting on the advice of the National Prices Commission, I agreed on 5th December, 1973, to revised price control arrangements for petroleum products in the context of the deteriorating world oil supply situation at that time, and the consequential need for more flexible price control procedures. Under these new arrangements, I raised no objection to the petroleum companies increasing their prices for petroleum products by amounts which brought their wholesale tax and duty-exclusive prices in Ireland up to the level of prices being charged by their parent or associated companies in the outer zone of the United Kingdom.
As there is a variation in the prices for petroleum products between different companies in the United Kingdom outer zone, similar variations are now in operation here in these companies' prices.
Is the Minister aware that there is a widely-held view that these price increases which he allowed resulted in an extra £6 million profits to the oil companies operating in this country? Is the Minister prepared to make any statement on that suggestion?
I have heard it said, but I have heard many other estimates also. Without warning I could not make any informed statement on the matter.
Is the Minister satisfied he has at his disposal complete and adequate information about the position in regard to stocks held by these oil companies in this country?
That is a separate question.
The Deputy might take up this matter with the Department of Transport and Power who keep data on such matters.
Surely before allowing an increase in price, the Minister would satisfy himself as to how that increase would relate to stocks already in the country? The suspicion in the public mind at the moment is that the increase in price, because of the stocks held in this country, has resulted in an excess of £6 million to the oil companies.
Is the Minister aware that two weeks ago on a Tuesday when garages were to get a supply of petrol they held it up and would not bring a supply until they got the go-ahead from the Minister's Department? They arrived on a Thursday with the supply. I want to make it known it was complete racketeering——
I want to help the Deputy but he must ask a specific supplementary question relating to Question No. 33. His questions do not so relate.
This is a fairly important issue and a pretty serious allegation. The Department of Transport and Power have information about the amount of stocks on 1st January. The major increase in the oil supply to the distributors took place on 31st December. A calculation was made of the number of days the stock existing at 1st January would last before new oil that had to be paid for at the higher price would come to the pumps. In fact, the increase in the retail price in this country did not take place until a week after that stock had run out, and also until a week after a comparable price rise in the United Kingdom.
I do not agree with that, neither do I think the people in the country would agree.
Would the Minister comment on the fact that oil companies generally will have a considerably higher profit on restricted supplies than they have had on the full supply?
Will the Minister hold an inquiry into the oil supplies, as he is doing with regard to coal supplies?
The question of profits for the major oil companies are partly notional because they control all stages of the process, from the hole in the ground to the petrol pump, and they can take their profit at different parts in the chain. With regard to an inquiry, I have three inquiries currently proceeding. The number of people available to carry out serious inquiries and to do them properly at a public level is not unlimited. I do not want to have inquiries on everything in sight but I will give serious consideration to the Deputy's suggestion.
May I ask the Minister——
I am calling Question No. 34.
34.
asked the Minister for Industry and Commerce the information he has regarding supplies of oil and gas located off the south coast; and if he will make a statement indicating the up-to-date situation.
As the Deputy will, no doubt, be aware, the company which holds an exclusive exploration licence in respect of an area off the south coast announced a few months ago that drilling operations in the Kinsale Head area had revealed the presence of significant amounts of natural gas. Studies are under way to determine the commercial viability of the discovery and there have been discussions between the company and the Departments concerned regarding the potential development and uses of the gas.
No finds of oil have been reported by the company.