asked the Minister for Industry, Commerce and Energy if he will outline the reasons for the decisions to sanction a further 11 per cent increase in Dublin town gas; the amount of the overall increase in the price of Dublin town gas since June 1977; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Town Gas Price.
1.
Based on a recommendation from the National Prices Commission, I approved in August last of an increase of 10.96 per cent on average in the consumer price of town gas in Dublin. This price increase, which was implemented by the Alliance and Dublin Consumers Gas Company with effect from 20 August 1979 was designed to compensate the company for an increase in the cost of their principal raw material.
Since June 1977 the consumer price of town gas in Dublin has increased by 55.5 per cent on average. I should point out that the Alliance and Dublin Consumers Gas Company are in receipt of a very substantial Government subsidy and but for this fact the consumer price of town gas in Dublin would be more than 15 pence per therm dearer.
Is the Minister of State aware of the dependence of a large number of people, particularly working people, on gas in the inner city area, people particularly vulnerable to this kind of price increase? Do the Government have any proposals in relation to an increase in the necessary amount of subsidy or, alternatively, to looking again at the whole question of the gas line from the natural supply of gas which is off Kinsale Head?
All of the points mentioned by the Deputy would have to be taken into account in the event of further increases being looked for by and sanctioned to the Alliance and Dublin Consumers Gas Company. The subsidy at present is of the order of £4 million a year. The question of increasing that would be a matter for the Minister for Finance and not for this Department. Therefore, the Deputy could probably address that part of his question to the Minister for Finance.
Do the Minister and the Government not think that this subsidy of £4 million for a private enterprise firm is a clear indication of the nonperformance of their task? Would the Government not consider and is the present Minister responsible for Energy considering, the possibility of taking the Alliance and Dublin Consumers Gas Company and their allied companies into effective public ownership and running them as efficiently as other semi-State companies?
We cannot start a discussion on all aspects of the Alliance and Dublin Consumers Gas Company. The question asks the reasons for the increase.
Yes, but with respect to you, Sir, the question also asked for a statement on the matter and I was referring to that aspect.
It is not necessary to reply. Question No. 2.
Perhaps the Minister of State would like to reply.
Is the Minister of State serious when she states that questions relating to subsidy should be referred to the Minister for Finance? Surely the Department of Industry, Commerce and Energy are the Department responsible for prices? Surely subsidies and prices are very much related?
The Deputy seems to be unaware of Government practice. As his colleagues in the previous Government will inform him, the matter of Government subsidy is primarily one for the Minister for Finance and then for the other members of the Government when he presents his proposals to them.
Would the Minister of State not accept that this is just a ploy to get away from her responsibility for prices?
No, I do not accept that, Deputy.
In view of the fact that yet another increase has been sanctioned—and the Minister of State has referred to the 55 per cent increase since 1977—is the Minister responsible for energy satisfied that the Alliance and Dublin Consumers Gas Company are performing their task satisfactorily and adequately?
The Minister is not satisfied that the Alliance and Dublin Consumers Gas Company operate as efficiently as they should.
Would the Minister then take them into public ownership and run them as efficiently as other companies?
I am not prepared to make a statement on that.