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Dáil Éireann díospóireacht -
Thursday, 6 Dec 1979

Vol. 317 No. 6

Private Notice Questions. - Oil Supplies.

andMr. O'Toole asked the Minister for Industry, Commerce and Energy (a) if he is aware that a major oil company are warning their consumers that the home heating oil they supply is not suitable for withstanding low temperatures; (b) what his view is of this warning given that most consumers have no practical alternative to accepting oil from their usual supplier; (c) what was the result of his investigation of the widespread oil solidification which occurred last winter and his subsequent contacts on the subject with the oil companies; and (d) whether he will take immediate steps to ensure that the companies do not attempt to disclaim normal liability for the sale of a product suitable for the Irish climate.

I am aware that one major oil company have drawn the attention of their customers to the fact that diesel oil can cease flowing in the normal way at very low temperatures such as those experienced last year and have advised them to take reasonable protective measures.

I think it is desirable that consumers should be informed about the characteristics of any product which they purchase.

I have obtained a report on the investigation carried out into the difficulties which occurred last winter arising from the waxing of gas/diesel oil. I am having the report published and will welcome observations from all interested parties on the implications of having the recommendations contained in it implemented.

Does the Minister accept that this notice which is attached to the order form is unreasonable in that the consumer has no alternative? Secondly, the Minister is condoning the production of a substandard commodity in that he is not making minimum specific regulations concerning the standard of oil to be used. How does he propose to suggest that people using, for example, tractors and motor cars can take evasive action to ensure that there will not be solidification? In the case of domestic oil systems there is some hope of lagging and so on but with tractors, lorries and cars it is much more difficult. Could the Minister comment on the lack of specific standards applying to this commodity?

He should light a bonfire.

I have informed the House that I propose to publish this report very shortly and I will take into account the views that no doubt will be expressed on it and on the recommendations which it contains. It would be wrong for me to make any orders or establish particular specifications until I have had the benefit of the various views. These would include the views of consumers and various organisations of consumers such as farming and motoring organisations and others and, of course of the oil companies. The matter is not as straightforward as the Deputy might imply and it is important that these views would be considered and whatever representations those people want to make taken into account. When that has been done it is likely that I would then be in a position to make an order specifying certain standards. It is perfectly reasonable and commendable on the part of the oil companies to give the warning which they do, and it is not in the terms which the Deputy might imply. It simply states: "Please note that diesel oil can cease flowing in the normal way at very low temperatures such as those experienced last year. We would advise you to take reasonable protective measures". That is a reasonable thing for them to say and I am glad that they draw attention to the possibility of this problem. Last winter, which the House knows was abnormally severe, was, so far as is known, the only winter for a very long time past where this problem arose.

Could I ask the Minister two brief questions? He has read the notice which is incorporated in the order form by the oil companies. How, in his opinion, does it affect the legal obligations of the companies? Secondly, he has made the point that he is considering a report at the moment. This report was commissioned by the IIRS as a result of last winter's freeze-up which caused solidification and many problems for consumers.

The Minister would not be supposed to interpret the legal position anyhow.

For the benefit of the Members of this House and of consumers I am trying to elicit whether this lets the oil companies off the hook in so far as their legal obligations are concerned. If a mishap occurs due to a freeze-up is the consumer liable, despite the fact that he knows from the word "go" that he is using a product which is substandard in these circumstances and has no alternative but to buy it where he is now buying it? Let me come back to the second question. The Minister has the IIRS report for some time. We are in mid-winter again. Why has the report not been published?

The matter of legal obligations and commenting on them is not a matter for me and it would be inappropriate for me to do so. It is a matter for the courts. As far as I know there are one or more cases in the courts on this point, so it would be particularly inappropriate for me to seek to make any comment on that aspect of the matter. It was only this morning that I succeeded in getting clearance from the Attorney General to publish the report because there were a number of cases pending. My Department were fearful that perhaps the publication of a report such as this at a time when apparently there were some cases in the courts might be regarded as prejudicing those cases. I felt the report was a matter of general interest and should if possible be published. The Attorney General debated the matter for some time but finally he agreed this morning that it would be in order for me to publish it. Therefore, I propose to do so.

Having dealt with all those points, has the Minister had discussions with the oil companies or sought to persuade them to change the inadequate specifications which last winter apparently discriminated against this country as against other countries, or has he taken no action in the matter?

I have discussed this problem with the oil companies in a general way. They would contest very strongly the assertion that the standard here is inadequate.

Is it the same as in Britain?

It is not the same as in Britain.

Is it inadequate?

It does not necessarily follow that it is inadequate. However, I was unable to discuss the matter in detail with them until such time as we had this report available for publication. It is now available and I expect that detailed discussions with them and with other interested parties can take place in the near future.

The Minister had the report for a good while before——

I am calling the second Private Notice Question.

Could I——

I would point out to Deputies that the allowance of a Private Notice Question does not mean a prolonged debate on the subject. It is just a question and answer.

The Chair must have regard to the answer being satisfactory.

The Chair must have regard to the nature of the question and answer and must see that it does not develop into a debate.

The satisfactory reply impinges on thousands of consumers around the country. Does the Minister regard what happened last year to many oil supplies around the country as obvious proof that this commodity is not up to the standard required in severe weather conditions? Is there any change in the standard of oil now being supplied by any company in this country as compared with last year's supply?

I am aware of the difficulties that arose last year. As far as I am aware it was the first and only time that that problem arose because of the most abnormally severe winter with prolonged, extremely low temperatures which have not been experienced in this country for a great many years and which on the law of averages are not likely to be repeated again for a great many more years. The problem arose from the gas/diesel oil which was refined in Ireland. Last winter that constituted about 40 per cent of the sales here. This winter it will constitute something less than 40 per cent. There is no difficulty with the other oil unless the temperature falls to an even more abnormally low figure. The Deputy should bear in mind that last winter was so severe that the standard which pertains in Britain and which pertains to 60 per cent of our gas/diesel oil was not sufficient to prevent this problem arising in Britain also.

But it was on a very much smaller scale.

It has been impossible for me to take definite steps about establishing a new standard until such time as I was free to show this report to interested parties and discuss it with them. It would have been unreasonable to make an order without letting the parties concerned know what the recommendations were. As I have explained, I have now been cleared to do that and I propose to do it.

What is unreasonable about asking the oil companies pending the report to maintain the same standard here as obtained in Britain?

It would entail fairly elaborate alterations and a greater degree of expense in regard to refining here. Therefore, I considered it unfair to ask the companies to do as the Deputy suggests until such time as I had the benefit of the report.

The Minister was not so concerned about fairness to the oil companies earlier this year.

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