Vol. 316 No. 8
asked the Minister for Industry, Commerce and Energy, if he is satisfied with the present trading practices of Coal Distributors Limited, Dublin, and the de facto monopoly which exists in relation to the distribution of coal in their general area; if he is aware of recent changes in their trading arrangements to customers which have added to the high costs of coal; and if he will make a statement on the matter.
18.
asked the Minister for Industry, Commerce and Energy if, following his recent meeting with the independent coal operators concerning the distribution of coal in the Dublin area, he has under consideration any plans to end the monopoly of coal distribution enjoyed by Coal Distributors Limited.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 17 and 18 together.
Regarding possible abuse by Coal Distributors of their position as sole importers of coal in the Dublin area a number of investigations have been held into the supply and distribution of coal in the years since the reorganisation of the coal trade in 1973, the most recent occasion being earlier this year. These investigations did not confirm that difficulties in supplying the market can be attributed to abuses of the company's position.
Nevertheless, I consider that the position would be improved if other interests became involved in the importation of coal and I hope that every encouragement will be given to people who may have plans of this kind in mind.
I understand that in the course of the summer Coal Distributors Ltd. became concerned at the incidence of unpaid COD accounts due to the postal strike and the rate at which orders for coal were being placed at a time of year when demand was traditionally very quiet.
To facilitate the collection of unpaid COD accounts by eliminating orders for small quantities and in an attempt to slow down orders which exceeded the company's ability to supply the company decided to introduce a minimum COD order of a half tonne in mid-June. The restriction was still retained after the postal strike ended in the hope that it would have an impact on the delivery position. As the Deputies will know, the company suspended the taking of new orders to facilitate clearance of a substantial backlog of deliveries. They have now resumed the taking of orders and have informed me that orders of less than a half tonne will be accepted but, in order to ensure a fair distribution of available stocks, this quantity will be the upper limit on all orders.
Both the retail and wholesale prices charged by Coal Distributors Ltd. are subject to control.
Would the Minister accept that a situation in which a company which in fact is a virtual monopoly is nevertheless enabled to change its trading practice in the manner he outlined, to introduce a cash on delivery system for people who are only interested or only able or willing to seek small quantities of coal is, in effect, a hidden price increase because it means that such people have to pay the money months earlier than somebody who is awaiting delivery for five or six months? In his view, is that just and satisfactory and does it require the approval of the Prices Commission? The Minister expressed the hope that others might become involved in this and suggested that every encouragement should be given to people contemplating this. I should like to know from whom he expects that encouragement to come? What had he in mind when he made that statement?
The Deputy seems to be under a misapprehension. The situation is that Coal Distributors Limited are the sole importers but not the sole distributors within the Dublin region. In fact, that company distribute only 40 per cent of the coal in the Dublin area. The remaining 60 per cent is distributed by bellmen who get their supplies from Coal Distributors Limited.
They are not very happy about that.
We met them on that point. Obviously, the question of additional facilities at the port would be of some benefit. Generally, the Government would like to encourage other private sector people into the importing business.
Is it acceptable to the Minister, his Department and the NPC, or are they interested or concerned, that a situation exists where cash with an order is insisted upon for those who only have a storage space for up to half a ton of coal while large companies and those able to order tons of coal can retain their money until the order is delivered, perhaps months later? In that situation a definite financial penalty is imposed on the poorer sections of the community.
As I have already indicated the maximum order that they are willing to take is a half a ton.
Since when?
I do not have the exact date but they informed me that orders of less than a half ton would be accepted and that in order to ensure a fair distribution of available stocks, the point being made by the Deputy, this quantity will be the upper limit on all orders.
That must have come into force in the last week. Does the Minister consider it just or satisfactory that a company that has the virtual monopoly of coal distribution in the city of Dublin is entitled, apparently, to make its own rules as it goes along? I am sure the company has the best will in the world in this case but is the Minister satisfied with a situation where we have to look forward to whatever decision the board of that company makes tomorrow to know whether or not the people of the city and adjoining counties will have fuel this winter?
As I have already stated, the company does not have a monopoly on distribution because 60 per cent of the distribution is done by bellmen who buy from the importers.
What importers?
The one importer.
They get the coal from Coal Distributors Limited. The Minister did not answer my question.
The company are not the only distributors. I did answer the question.
It is possible that the Minister does not know the answer.
19.
asked the Minister for Industry, Commerce and Energy if he is satisfied that the present trading arrangements for fuel merchants will allow consumers, particularly those on low incomes, to obtain an adequate supply of fuel for the coming winter.
Demand for coal has been exceptionally heavy this year and it has been suggested that some consumers may have purchased stocks in excess of their likely winter requirements. Up to the end of October the estimated total quantity of coal imported into the country was substantially in excess of imports for the whole of 1978. The coal merchants had, in general, planned to meet a demand about 50 per cent higher than last year. I have been informed by them that consignments from America and Poland expected during the coming months should prove adequate to meet demand. However, it has been difficult for the trade, in the face of the exceptional demand, to maintain a constant rate of supply because of production difficulties at American mines and railroad congestion there which have disrupted shipping schedules. Problems have also arisen because of the abnormally high slack content of some shipments of American coal.
The information available to me at this time suggests that coal stocks in the hands of consumers and the trade together with planned imports until the end of the winter should in the aggregate be sufficient to meet normal requirements and to offset a shortfall in heating oil supplies of somewhat greater proportions than would be expected in the light of the immediate oil situation. There are, however, a number of factors which could distort this position. If it is a fact that some customers have already purchased more coal than they will need this winter then, to that extent, some of this year's additional imports may be hoarded. For a variety of reasons the stocks and delivery position is not uniform throughout the country as a whole.
Demand from now on will be materially influenced by the weather conditions. While the immediate oil situation has shown an improvement, the supply-demand balance is delicate and, therefore, vulnerable to unforeseen events. For these reasons I have been keeping the coal supply situation under constant surveillance and my Department have maintained close contact with coal traders in various parts of the country.
Bord na Móna have informed me that availability of machine turf to the domestic market this winter will be about the same as last year, but this is unlikely to meet demand. While the maximum possible output of briquettes from existing production facilities is expected to be achieved, this also is likely to be less than demand. A new briquette factory is under construction and further production capacity is also planned. These will not, of course, contribute to supplies this winter but they will assist the position from 1980-81 onwards.
As regards oil, the Deputy will be aware that I have authorised oil suppliers to make an initial delivery of 1,000 litres of heating oil for each domestic customer. Here again I have been keeping the situation under close review and there have been continuous consultations between my Department and representatives of the trade. Information available from these consultations and the fact that the National Petroleum Corporation has been able to make arrangements for a substantial purchase of gas-diesel oil, indicate some improvement in our general supply position. I am now giving active consideration to the possibility of authorising a second delivery of 1,000 litres for domestic consumers to commence as soon as the oil companies facilities permit.
I understand from the bottled gas companies that they have been preparing to meet a reasonable increase in demand for LPG over the coming winter.
As regards the position of lower income groups, I understand that the Minister for Social Welfare has dealt with a number of questions from the Deputy relating to fuel arrangements. If major difficulties which are specifically related to the non-availability of supplies come to my notice I will make every effort to alleviate the position.
With regard to coal stocks, I should like to know how the Minister obtains his information? Are requests made to the company or do the Department make investigations? Is it based on the mere acceptance of the word of those involved commercially?
This system has developed over the years by checking with ports and shipping and the building up of contacts with the companies. There is a continuous supply of information from the companies to the Department and that information is checked through shipping and so on.
I am pleased to hear about that checking system but I would be obliged if the Minister would elaborate on his statement that there will be enough coal this winter.
A series of meetings were held in August with the various importers of coal and the figure quoted was checked against the shipping arrangements and the planned shipping programme. As I mentioned, the companies experienced some difficulties because of the situation in American mines and railroad congestion in that country. Because of that some of the shipping schedules have slipped back but we are expected to import 50 per cent more than last year.
