andMr. Molony asked the Minister for Trade, Commerce and Tourism if he will introduce a new system of price control for the retail sale of petrol and petroleum products, the principle of which would be to align the maximum Irish price with the average EEC price allowing for valid currency exchange differences, or to align the maximum Irish price with the price in any particular competitive market; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Petroleum Products Price Control.
8.
The Deputies will be aware that the National Prices Commission have at my request undertaken a review of the price control arrangements for petroleum products. I understand that in the course of this review the commission have been examining alternatives to the present cost-related system of price control which include those suggested in the question. When the commission make their report to me I will consider carefully their recommendations on the matter.
Would the Minister accept that the NPC have had quite an amount of time within which to come up with the report? When does he expect the report? He told us some months ago that he expected the report shortly.
It is not a question of a report. At the moment consultations are taking place with the various oil companies, the NPC and the appropriate companies. At the end of that series of discussions, which are of an inquiry nature, the recommendation will be made.
In view of his answer to my last question, can the Minister indicate whether the review that was taking place in the NPC on price control in relation to petrol prices has been abandoned?
No. I do not know how the Deputy can come to that conclusion. In fact, some short while ago I agreed to allowing a price increase to the oil companies only in respect of fluctuations in international currency, and any other increase which they have made application for was deferred and, I indicated clearly to them, would be deferred until the outcome of the NPC investigation.
Is the Minister aware that in the prices published in Brussels on 17 November of this year the price of petrol in this country is still away above the EEC average and is by far the highest in the EEC? Is the Minister aware that the CII in the September issue of The Irish Banking Review have asked for a review of the present system of price control and for a review of the scheme which Deputy Manning and I proposed in the question? Finally, is he satisfied that the NPC are the appropriate body to review those procedures?
A number of questions have been raised. First, I am satisfied that they are the appropriate body. They have done an effective job taking all factors into consideration. The question raised by the Deputy about the EEC figures was raised repeatedly in the past. Repeatedly I pointed out that Deputies are not comparing like with like. A number of factors which are applicable in this country are not necessarily applicable in other countries. For instance, there is the margin for the retailer which is somewhat higher because of the isloation of some of our retailers and their distribution costs which are not applicable in other countries. There is the question of Whitegate. A number of other matters enter into it. Despite my advice to the Deputy and his colleagues that they should be aware of the fact that they are not comparing like with like, and that they are distorting the actual situation, the same question continues to be posed. My answer is the same.
This is a most serious matter.
I allowed the Deputy several supplementary questions. We cannot have a debate on it.
I asked three supplementaries.
They were very long ones.
I will be very brief. Whatever circumstances may justify a higher price for petrol here than in other EEC countries can the Minister explain why the difference in price over the past few months has varied from a high of 33 per cent to a low of about 12 per cent or 13 per cent? The difference has varied by that much.
Would the Minister agree that if we compare our price with the price in filling stations adjacent to the Border we cannot get nearer to comparing like with like?
In answer to both supplementary questions I can assure the House, as I have done previously, that every aspect of the pricing of oil produce is taken into consideration by the Prices Commission. They are finalising an inquiry into the price of oil produce. They have not excluded any approach including that suggested in the question. When this question was being pursued some months ago, a detailed statement of all aspects of oil pricing and the approach to it was supplied to Deputies. The criteria have not been departed from, but some people are excluding a number of factors, some of which I have mentioned, which are applicable here and are not applicable in other EEC countries.
One short question.
I am passing on to Ceist 9. I have been more than patient and more than fair on this question. The Deputy has a number of questions on the Order Paper. I am sure they are important and I should like to get to them. Ceist 9.