17 Mr. Quinn asked the Minister for Industry and Commerce if he has received the report of the Director of Consumer Affairs and Fair Trade on his investigations into the margins of smokeless fuels in Dublin; if he will outline the findings of the report; and if he will make a statement on the matter.
31 Tomás Mac Giolla asked the Minister for Industry and Commerce if he has received the report from the Director of Consumer Affairs and Fair Trade into the price structure of Coalite as compared to coal, which he informed Dáil Eireann on 5 December 1989, he had requested; if it is intended to publish the report; if it is intended to take any steps to secure a reduction in the price of coalite; and if he will make a statement on the matter.
I propose to take Questions Nos. 17 and 31 together.
As the Minister for Industry and Commerce indicated to the House on 20 February 1990 in reply to Question No. 155, volume 395, columns 2333-4, by Deputy R. Bruton, the decision of the Government to prohibit the supply and distribution of coal in the Dublin area from September next should have, as one effect, the development of a competitive market among the suppliers of various smokeless fuels. Accordingly, as he informed the House at that time, the Minister asked the Director of Consumer Affairs and Fair Trade to monitor developments in this regard and in view of the changing situation in the marketplace the investigation into the competitive pricing structure of one particular type of smokeless fuel has not been proceeded with.
The Office of the Director of Consumer Affairs and Fair Trade, in the course of carrying out this ongoing monitoring, publicly invited views and comments from interested parties on the competitive conditions in the market. To date no submissions have been received.
In announcing the ban on the supply and distribution of coal in the Dublin area, the Minister for environmental protection, Deputy Mary Harney, indicated that the Government had taken a decision on arrangements for assistance to low-income groups in the restricted area in order to minimise the costs arising for such groups. The Minister for Social Welfare, Deputy Michael Woods, has since announced details of assistance to be provided in the form of extra fuel allowances for certain recipients of social welfare assistance. I understand that details are available from the Department of Social Welfare.
Will the Minister agree that the delay in producing the report by the Director of Consumer Affairs and Fair Trade is disturbing? Will he accept that the matter is urgent? Will he tell the House what the Government are doing to expedite this?
I do not think the report is relevant. At the time the Minister invited submissions so that the report could be compiled by the Director of Consumer Affairs and Fair Trade, a decision to ban the marketing and distribution of coal had not been announced. From September the marketing and distribution of bituminous coal will be banned and, therefore, the difference between bituminous coal and Coalite is not a relevant factor.
I should like to refer the Minister to the description by the Minister for the Environment that he found the difference between the price of Coalite and coal to be "disturbing", Will the Minister accept that, referring to the measures introduced to minimise the impact on certain categories of social welfare recipients, to allow a differential of £3 to people on fuel vouchers, which is precisely the differential between the price of a bag of Coalite and a bag of coal, is inadequate? It is wrong to expect social welfare recipients to live on one bag of Coalite per week.
The Deputy is failing to take into account the developments which will take place in the coming months in relation to the price of Coalite and other fuels. For the first time bituminous coal will be banned and the other fuels will compete for the market. It would be unrealistic to assume that the existing price of Coalite, and its comparison to the price of coal, should remain. The £3 million allocated by the Minister for Social Welfare will have to be monitored in the light of developments.
Is the Minister implying that because of the ban on bituminous coal there will be a greater demand for Coalite resulting in the price of Coalite falling? If not, does the Minister have in place a mechanism to ensure that advantage is not taken of the fact that only Coalite can be used resulting in a bonanza for certain people?
I am quite sure that the Deputy underestimates the capacity of alternative fuels to Coalite to take a dominant position in the market. Clearly, it is an opportunity for Bord na Móna and the producers of other suitable fuels to be more competitive. We will have to await the outcome and the Government will take note of developments as they arise. However, as an initial thrust to help lower income groups in specified categories, an additional £3 million is being provided under the free fuel allowance scheme. Developments thereafter will be monitored.
Is the Minister saying that, well in advance of the next heating season, if it transpires that the differential between acceptable fuels and coal is not reduced, despite the aversion of the Minister for Industry and Commerce to price control, such measures will be adopted, if necessary, to protect the most vulnerable people in relation to the measures to ban coal in Dublin?
Over a long period — going back to the third last Government — each succeeding Government have resisted the temptation to get too involved in price control as it did not seem to work satisfactorily. Nowadays they tend to allow for competing market forces to determine prices which seems to be better for the consumer. It would not be fair for the Deputy to take any more out of my reply than the assumption that we are taking initial steps to provide for the lower income groups and assuming certain developments in the market. We will await developments before we take any further steps.
I am amazed at the Minister's reply. Now that bituminous coal has been taken off the market, will the Minister agree that the profit margins on smokeless coal should be urgently investigated because that is the only type of coal available?
I have tried on a number of occasions to indicate the position to the Deputy. I am prepared to have a little wager with him — if time permits and if we can afford it — that developments in the market will be different from what he seems to assume. If the Deputy is saying that he expects Coalite to be a dominant factor to the exclusion of all other alternate fuels, he will find that will not be the position.
