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Dáil Éireann díospóireacht -
Wednesday, 21 Nov 1990

Vol. 402 No. 9

Ceisteanna—Questions. Oral Answers. - Oil Refining and Distribution Costs.

Richard Bruton

Ceist:

2 Mr. R. Bruton asked the Minister for Energy whether he has made returns to the EC on the costs of oil refining and distribution in Ireland for the years 1988 and 1989, in accordance with EC Council Directive 76/491/EC; and if he will make a statement on the matter.

Due to non-compliance by certain oil companies with requirements in accordance with the provisions of EC Directive 76/491/EC, the appropriate returns have not yet been made to the European Commission. My Department continue to press the chief executives of the oil companies concerned and expect to be shortly in a position to have the returns completed.

Would the Minister not agree that it is totally unsatisfactory that this is the same reply he gave me nine months ago when I raised this question? Is it not the case that had these returns been revealed, as they were back in 1987, they would show Irish distribution costs to be at least two and a half times the European average? Will he not agree that his Department have been complacent to the point of negligence in failing to go with this evidence to the Fair Trade Commission who are looking at distribution costs in the oil sector and have it examined.

Distribution costs are a matter for the Minister for Industry and Commerce. I suggest, if the Deputy wishes to raise any matter relating to distribution costs, it would be more appropriate to direct it to my colleague the Minister for Industry and Commerce. The question of consideration of evidence by the Fair Trade Commission is again the responsibility of the Minister for Industry and Commerce. The Deputy seems to be under a misunderstanding in regard to these figures and believes they are in some way inhibiting the Fair Trade Commission in their consideration of the oil company distribution arrangements here. They are not, and it has not been brought to my attention at any time that the delay in producing these figures for the Community has interfered in any way with the work of the Fair Trade Commission who, incidentally, I expect will be finalising their report on the oil distribution industry within the next few weeks. Certainly, the Minister for Industry and Commerce hopes to have it before Christmas.

I agree with the Deputy in regard to the reply given last March. If the House will bear with me I will explain what has happened since then. Let me stress at the outset that the returns in question are the only oil returns required by the EC which are not dealt with by my Department. I reject utterly and absolutely the Deputy's false accusation against the Minister, and staff in the Department of Energy, in regard to these matters. We have not been dilatory in any way. The fault lies elsewhere and I have explained that to the Deputy. I agree with him that it is not satisfactory at all that these figures should be delayed in the way they have been. The net sales proceeds returns are completed by individual oil companies and, for confidentiality reasons, are amalgamated by an accountancy firm. Since the last parliamentary question in this matter was taken in the House representatives from my Department visited Brussels to discuss certain aspects of the returns with them. The outcome of these discussions necessitated a revision of data by the oil companies in respect of certain costs. This led to a delay in forwarding data by the oil companies. I am confident that that final return can be made shortly to the Commission. I assure the Deputy, and the House, that I will be keeping these developments under constant review.

Will the Minister not agree that what he has said is just flannel? Will he not agree that the Fair Trade Commission commented publicly in their report that they could make no statement on the proper distribution margins because they did not have access to the information to judge that issue? The Minister is responsible for collecting that information. Will he not agree that he promised to take action urgently in the past and we have not seen it?

To dwell overlong on this question must surely be to the detriment of the remaining questions nominated for priority.

I will conclude by saying the Deputy continues to mix up two separate matters. The Fair Trade Commission have had access to all the information they require to enable them come forward with their report.

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