I move:
That Dáil Éireann, seriously concerned at the escalating price of bottled and town gas because of the serious hardship it is causing to large families and elderly people who use this fuel for cooking and heating, calls upon the Government to take steps to reduce the price of gas to consumers.
This is an urgent motion. Throughout the city of Dublin and the country there are thousands of householders who have no system of cooking and heating other than gas. With the price of town gas and bottled gas escalating, there is an urgent need for this House to express its serious concern and take action to remedy the situation. For families who use gas for cooking, prices have reached such a level that people are forced to eat cold meals. They are deprived of warm food because the price of gas has gone out of control.
In an RTE interview yesterday the Minister for Energy said that consumers were being faced with almost intolerable increases in price. Those were his actual words. I would go so far as to say that increases are intolerable. There is no "almost" about it. The Minister blamed the price increases on the increased cost of naphtha. I admit the price of naphtha has had a very serious effect, but I accuse the Government openly of being to blame also for the increases in gas prices and of not helping to cushion consumers against those price increases.
My reasons for blaming the Government are twofold. They reduced the subsidy on town gas. This subsidy was introduced by the Coalition Government in June 1975 and further extended in May 1977. Secondly, the Government increased the excise duty on gas in this year's budget. The subsidy on the price of town gas for cooking and central heating was reduced by 4.5p in February 1978. That was a sizeable reduction at the time. The second significant increase in the price of gas was the increase in excise duty from £7 per ton of naphtha to £24 a ton in this year's budget. This meant an increase in excise duty of from 2p a gallon to 7p a gallon, or an overall increase of 5p a gallon. This year's budget also increased excise duty by 22p per cylinder on the ordinary 25 lb. cylinder.
It is necessary to outline for the House tonight the extent of the increases in prices for natural gas and bottled gas. In May 1977 the net price per therm of gas for cooking was 45.03p. The gross price was 66.23p. The subsidy was 21.20p. On 1 February 1978 the price was increased from 45.03p to 49.53p. At the time the Government withdrew 4.5p of the subsidy, and from there the price took off. The subsidy was reduced from 21.20p to 16.70p. The net increases were as follows: On 14 May 1979 the price went up to 60.61p; on 20 August 1979 to 66.53p; on 18 September to 69.88p; on 7 January of this year to 84.75p; on 23 February to 90.47p; on 4 March to 98.93p; on 6 May it went to 107.73p. Between May 1977 and May of this year, the price increased on eight separate occasions. Therefore there have been price increases on eight separate occasions and on two of those occasions the Government were solely responsible for the increases concerned.
Regarding the central heating rate, the net price on 25 May 1977 was 32.70p. The gross price was 49.90p with a subsidy of 17.20p, but on 1 February 1978 the net price increased to 49.90p with the reduction of the 4.50p. Since May 197 the increase in this regard has been from 32.70p to 90.78p. In this instance, too, there were eight separate increases.
In April 1977 a cylinder of gas cost £2.62 but that price has increased now to £4.33 and this includes the 22p that the Government take. In addition to having to pay this high price for the regular cylinder of gas for domestic use there is a delivery charge in operation and this varies from 27p in Kilkenny, for instance, to 40p in other areas and to as much as 50p in this city. In this city too, the price of cooking gas has increased in less than three years from 45.03 per therm to 109.77p. All of these increases are very significant.
It is important to recall too that the subsidy has been decreasing consistently. In May 1977 the figure in this respect was 21.20p but it decreased in February 1978 to 16.70p at which figure it has remained since. To put this subsidy situation in respect of town gas in percentage terms, it has decreased from about 32 per cent in May 1977 to about 13 per cent now. This decrease has had a significant effect on the cost of this gas to the consumer. Obviously if the subsidy had been maintained at the 32 per cent level town gas would be costing the consumer at least 20p less per therm, a situation that would alleviate the hardship that is caused to such people as those with a number of young children or old age pensioners, widows and others in receipt of social welfare payments who rely totally on town gas for all their cooking and heating needs. It is unforgivable that the Government should be allowing this sort of situation to continue. The problem is aggravated more in the city where so many people rely solely on gas for cooking and heating, but there is a similar situation in towns.
The Government's decision to increase the excise duty on bottled gas by 22 per cent was very wrong. People in rural Ireland particularly will not forget easily this decision because it is in rural Ireland that bottled gas is relied on to a very large extent especially in the smaller houses. I call on the Government to restore the subsidy in this regard to the 1977 ratio of about 32 per cent.
I know I cannot extend the scope of this motion, but the Government should seriously examine the possibility of providing a subsidy for all types of fuel throughout the country. This motion deals with gas only but there are many people throughout the country experiencing difficulties in regard to other fuel costs.
The household budget survey published recently shows that the percentage of average weekly expenditure of urban households from 1973 up to 1977 increased from 4.8 per cent to 5.6 per cent. I do not want to be the forecaster of bad news but in, say, two years time, whenever the relevant report for 1980 is published, I predict that that 5.6 per cent will be in excess of 6.5 per cent because of the massive increases in gas prices allowed by the Government, because of their withdrawal of the subsidy and their increase in taxation on gas supplies. The Government are absolutely to blame for this.
This motion calls on the Government to take steps to reduce the price of gas to consumers. This evening's Evening Herald carries a caption “Kinsale Gas Will Slash Home Bills”. I am sorry to predict that it will be some time before Kinsale gas will slash home bills. In yesterday's Evening Press the Tánaiste got top headlines with a caption “The National Gas Grid Looks On” and in the Evening Herald“Kinsale Gas For Dublin”. However, anybody who read those articles will have seen that things were not half as definite as that. For instance in the first article it was reported that the Government had ordered a major study on the establishment of a multimillion pound national gas grid. Then it was reported that the Minister for Energy, Deputy Colley, had ordered a number of important steps following the publication yesterday of a major study on the town gas industry; also that the Minister for Energy had now requested Bord Gáis Éireann to undertake preliminary studies and surveys in relation to possible routes for a pipeline and the cost involved. It was said that he had also asked the Dublin Gas Company to submit a detailed programme of action to achieve necessary reforms within that company.
The report published yesterday was an important one. The study group was comprised of experts from different Government Departments who undertook to have consultations with the Irish Town Gas Association, individual gas companies, the trade unions catering for employees of those companies, the ESB and Bord Gáis Éireann, with submissions from a number of interested parties. The report stated that the Tánaiste had given preliminary consideration to the question of publishing the report in full but that at this stage his conclusion was that the report was not in a form suitable for publication. In regard to a study of major importance such as this one I believe that the Tánaiste has a duty to this House and to the country to have it published in full. This was a study undertaken at significant cost to the taxpayer, carried out by people employed in the public service, the trade union movement, the ESB and so on, and now we discover we shall see a digested or censored edition only. I challenge the Tánaiste and Minister for Energy to explain to this House and the country why this report is not being published in full. There is an obligation on him to do so. This report is probably one of the most significant to have been produced for many years, dealing with a national gas line from our offshore supplies. It deals with this gas line from Cork to Dublin together with feeder lines off the main one and with the actual cost entailed. It deals with the extent and scope of whatever feeder lines may be provided off the main one and the actual supply of gas offshore. Let there be no question about it, the ordinary taxpayer has paid for this report. But now all Séan Citizen will receive is an edition censored by the Tánaiste and Government. I reject this totally out of hand. I call on the Government to publish this report in full and not have this veil of secrecy hanging over the whole matter. People are entitled to know the facts, what this is all about, because in some years time, if this scheme ever goes ahead, people may well wonder what was in that report that was hidden.
We are at present talking about a three to five year preliminary study. I believe this supply could be laid on much faster than is at present being predicted. We are aware that in Great Britain approximately 12 gas boards have managed to provide supplies throughout England, Scotland and Wales. We must meet this challenge and endeavour to supply to Dublin consumers the national gas which is located off Kinsale. This would help to reduce the price of gas and also have an enormous effect on our balance of payments. An Bord Gáis must be expanded very rapidly to expeditiously provide gas supplies not just for the city of Dublin but for our other major cities and large provincial centres. There should not be just one main line feeding the gas supply from Cork to Dublin, but a number of feeder lines running, for example, to Galway and Limerick and other major towns. There may not be sufficient gas supplies available, however. The studies which have been undertaken must be acted upon immediately.
Natural gas supply has been managed in Britain and it has been most successfully carried out in Holland and Japan. I see no reason why we cannot do the same here. The delays mentioned, of at least three to five year periods, are much too long. We have the example of other countries, but even without that we should be able to expedite a natural gas supply throughout the country. This would benefit many industries, even if only for heating purposes, and would further industrial development.
In the report the Minister says that he has already requested Bord Gáis Eireann to undertake preliminary studies and surveys in relation to possible routes for a pipeline and the capital cost involved. I do not know when this request was made; it could have been in the last few days. The House should be furnished with this information, because it is in the national interest.
The report concludes that the future of the town gas industry in general, apart from the special case of Cork for which an allocation of natural gas has already been approved, hinges largely on the future of the Dublin Gas Company which accounts for over 90 per cent of the sales of the industry, excluding Cork. The report sets out a number of essential conditions to be met before any allocation of natural gas can be made to the industry. Those conditions are outlined and are reasonable. A matter of such national importance should not hinge solely on the Dublin Gas Company's future. Could the Minister tell the House tomorrow why this should be so? If necessary, the Dublin Gas Company which services only a portion of the city of Dublin should be purchased outright. This whole matter is of such vast national importance that, if necessary, the Dublin Gas Company should be purchased and taken over to the satisfaction of all concerned and everyone with whom I have discussed this matter is of the same opinion as I am.
The cost of changeover from the present system to natural gas is not enormous. The provision of a national network would provide much employment, be of benefit to the country as a whole and bring about a reduction in the price of gas. There are a number of important steps which the Government must undertake. In the interim they should consider withdrawing the duty at present being charged on bottled and town gas. Secondly, they should restore the subsidy in the same ratio as when the Coalition Government were in office. This would help to alleviate hardship throughout the country. The Government should ensure that every possible effort is made to conserve energy and heat. The provision of grants for insulation of windows, doors and so on is of importance.
The Minister has tabled an amendment which I totally reject. The Government have failed miserably to make any effort whatsoever to control the price of bottled and town gas. I seriously deplore their lack of effort in this regard. My party are seriously concerned about the escalating prices of these commodities.