asked the Minister for Industry and Energy the responsibility he has for any contract entered into between An Bord Gáis and the ESB: and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Natural Gas Contracts.
12.
I presume the Deputy is referring to contracts for the sale of gas. Under section 11 of the Gas Act, I have the power to issue general directives concerning the pricing policy as to the sale or supply of gas or the financial objectives of the board. However, I am specifically precluded from exercising power or control in relation to the price to be charged by the board in a particular case.
Under section 8 of the Gas Act, 1976, Bord Gáis Éireann have the power to sell and supply gas and attach such terms and conditions as they think fit to any sale of gas or indeed any facility provided by it. It has been the practice of the board, before concluding any substantial contracts for the gas, including contracts with the ESB, to ascertain that the Minister did not see objections to the proposed allocation.
EEC Directive 75/404, details with the allocation of natural gas for electricity generation. It specifies that before any contract for the supply of gas to power stations can be concluded there must be prior approval of the authority of the member state involved.
On a more general basis and in the interest of board policy on the utilisation of natural gas I and my predecessors have, from time to time, discussed with BGE and agreed with them the principles which should apply to the allocation of natural gas supplies for various uses including use by the ESB.
13.
asked the Minister for Industry and Energy if he is aware that the delay in finalising a contract for the supply of natural gas to Dublin Gas Company will result in a delay in supplying this gas to industrial and domestic consumers in Dublin; and if he will make a statement on the matter.
As the Deputy will now be aware, I have announced that agreement has been reached between Bord Gáis Éireann and Dublin Gas Company on the main provisions of a contract for the supply of natural gas. I expect that both organisations will now proceed quickly to the actual signing of a contract with the aim of getting gas on time to industrial and domestic consumers in Dublin. The Deputy will, of course, be aware that work on the construction of the pipeline from Cork to Dublin is continuing on schedule. The awarding of the contracts for the interconnector from Dublin city gate into Dublin gasworks and the ESB are expected to be made by BGE shortly and work completed by next December. The planned arrangements for bringing gas on stream in Dublin are, therefore, on schedule.
Is the Minister satisfied that the interconnector will be completed by the end of December and is he satisfied also that if necessary technical detail will be effected in order to ensure the safe and efficient distribution of gas to the people of Dublin?
I am satisfied that the interconnector can be completed by the end of December and I am informed that every aspect of safety will be undertaken fully in relation to the distribution of the gas.
On the question of bringing natural gas to Dublin, did the Minister approve of the full-page advertisement inserted by the company in the national newspapers two or three days ago to announce this event? Does he approve of this sort of expense being incurred by the company who are not in the strongest financial position or would he agree that such expense was totally unnecessary? Had the Minister anything to do with the placing of the advertisement?
The Deputy can be assured that I had nothing to do with the placing of the advertisement in question.
Somebody in the party had something to do with it.
I agree fully that such advertising is part of the company's marketing strategy to encourage people to become interested and to make the changeover. I am sure the Deputy will agree that what we want is the expansion of the premium market so that the greatest advantage possible can be gained from bringing natural gas to Dublin. I do not disagree in any way with such advertising.
May we expect to see a series of sales advertisements on similar lines from the board until such time as the gas is available?
The marketing policy of the board is a matter for them. They know what their objectives are in maximising publicity as to the benefits of gas. It is in their interest to expand the number of customers in this area and if part of that strategy involves an advertising campaign, I agree fully. I am interested in seeing the board attain their objectives and to this extent a good strong marketing area is vital. If we had such marketing in many other areas, we might be a lot better off.
Especially two days before a by-election.