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Dáil Éireann díospóireacht -
Wednesday, 4 Dec 1985

Vol. 362 No. 6

Ceisteanna—Questions. Oral Answers. - Kilkenny Natural Gas Supply.

1.

asked the Minister for Energy when the Government will decide to provide natural gas to Kilkenny; and if he will make a statement on the matter.

Proposals for a supply of gas to Kilkenny are being re-examined by Kilkenny Gas Company and BGE. The Deputy will be aware that an earlier approach had to be abandoned because the proposals would not give a viable project. I will have to await the outcome of the renewed investigations before I can comment further, and I am pressing both sides, Kilkenny Gas and BGE, to press forward with all possible speed.

Can the Minister give a firm indication as to when a decision may be made, particularly in view of the fact that there was a similar question to the Minister several months ago when he indicated that the provision of a supply of natural gas to Kilkenny was not a viable proposition? Can he indicate now when his Department will be in a position to announce that Kilkenny is to be supplied with natural gas? The Minister will note that on this occasion my question is "when" rather than "if" natural gas will be supplied to Kilkenny.

To be fair to the Deputy, he will recall that on a previous occasion a project put forward for Kilkenny was rejected on the basis that it was not viable. I then sought another method of bringing gas to Kilkenny and an assessment in that respect was undertaken. Consultants were engaged for that purpose. I do not like indicating a firm time scale because if I say, for instance, that something will be dealt with in a matter of weeks, and if that is found not to be sufficient time, I then have to come back to the House and explain the delay but I assure the Deputy that I am determined that a decision in respect of the supply of natural gas to Kilkenny will be made as a matter of urgency.

The Minister may be aware that one of his colleagues in Coalition announced by way of the local papers that Kilkenny definitely will be supplied with natural gas. I should like the Minister to confirm or deny that. Can he say also whether the present investigation involves the supply of natural gas to Smithwicks Brewery who were involved in the original application?

That seems to be a separate question, so far as the brewery is concerned.

If the proposition is being investigated, I would expect the Minister to have that information.

The indications to date are positive, that Kilkenny should be receiving gas, a move which I would consider to be in the interest of the community and of the city. Smithwicks are not involved in the project. It is now a stand alone project for the city of Kilkenny.

If the project were found not to be viable with the participation of Smithwicks who would be a huge consumer, it is difficult to understand how it can be considered viable in terms of supply to householders only. Kilkenny Gas Company have been in a limbo for several months. The Minister must appreciate that their position is desperate. I am asking him to make every effort to give a firm decision in this case as soon as possible rather than to play the type of politics that we have witnessed in the past couple of months.

The Deputy is engaging in argument.

There are two aspects to the question. First, there is the matter of viability. One must consider the question of capital expenditure and the securing of other commercial markets. On that basis I am confident that we will bring about a viable product and I can assure the Deputy that that will be done as soon as possible.

Does the Minister's new approach to the supply of natural gas to Kilkenny involve any participation of equity by BGE?

Not at present.

May we take it from that that the Minister is about to do a u-turn on his stated policy in relation to the provision of natural gas, because a long time ago he said that no private company who do not have majority public sector ownership would avail of natural gas?

I have not been guilty of any u-turn in relation to natural gas policy. Where projects have been public sector ones, they have remained in the public sector. I am confident that a viable project can be put together for Kilkenny and any such project will have my support.

The Minister seems to have a very short memory. I do not have with me the Official Report concerned but I shall extract it this afternoon and send it to him——

This is not a question.

——so that he may read his statement that unless a company had majority public sector ownership, they would not avail of natural gas. That is exactly what happened in Limerick.

I am calling the next question. We must have co-operation.

I shall then await the Minister's reply regarding his u-turn vis-à-vis that statement.

We must move to Question No. 2.

Have the Coalition resolved their differences in relation to their approach to this area?

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