Vol. 480 No. 7
23 Mr. Penrose asked the Minister for Public Enterprise the progress, if any, which has been made on the extension of the gas trunk line to allow for natural gas to be provided to towns in the midlands and west of Ireland; and if she will make a statement on the matter. [14924/97]
47 Mr. J. O'Keeffe asked the Minister for Public Enterprise the plans, if any, she has for the extension of natural gas to major towns and cities; and if she will make a statement on the matter. [14914/97]
63 Mr. Howlin asked the Minister for Public Enterprise the towns which are included in the current Bord Gáis programme for extending the natural gas network to towns not currently enjoying that service; and if she will make a statement on the matter. [14942/97]
I propose to take Questions Nos. 23, 47 and 63 together.
One of the key priorities for the energy sector in the programme for Government, an action programme for the millennium, is to extend natural gas as far as practicable to major towns and cities. I am fully committed to this policy objective.
Bord Gáis has informed me that the following towns, which currently do not have a natural gas distribution system, are included in the board's present study for the extension of a natural gas supply to them, possibly in 1998: Kinsale, Bandon, Fermoy, Carrick-on-Suir, Navan, Portlaoise, Athy, Ballina/Killaloe and, in north County Wicklow, Kilcoole/Newtownmountkennedy. Surveys of the load potential for the residential and commercial markets are ongoing for these towns. Should sufficient loads be identified for each extension of the gas network to be economically viable, the project will be included in the Bord Gais programme. Some other towns may be included in the programme should the extensions to them be identified as economically viable.
At present, no dates for the commencement of pipeline construction works on these possible extensions have been scheduled. In the case of potentially viable extensions, construction would only commence following firm commitments from key loads. Bord Gais Éireann is also currently arranging gas supplies to the following towns: Mitchelstown, Mallow, Cobh, Annacotty, Ashbourne, Bettystown, Clane, Kildare, Dunshaughlin and Ratoath.
On the initiative of the former Minister of State at the Department of Transport, Energy and Communications, Deputy Stagg, a proposal for a major extension of the natural gas network to the midlands and west to provide gas to Trim, Mullingar, Athlone, Ballinasloe, Galway, Ennis and Shannon to be supported by Exchequer funding was submitted to Government. The then Government decided that further inquiries should be made in respect of the EU State aids aspect of the proposal before proceeding further with the project. Deputy Stagg wrote to the EU Commissioner for Competition in mid-May seeking clearance on the State aid issue. The Commissioner has since replied requesting that this notification be formalised under Article 93.3 of the EU Treaties. Having reviewed and updated with Bord Gais the assumptions underlying the proposal, I arranged for the formal notification to be submitted to the European Commission's Competition Directorate on 24 September to allow the Commission to make a full assessment of the proposal and take a formal decision.
As it is now 4.15 p.m. the time for questions has expired and we must proceed with the next item of business.
Would it be in order to ask a supplementary question?
I will permit brief supplementary questions by the two Deputies who tabled these questions.
Like the Minister I am particularly interested in the midlands. Will the Government be giving a full commitment to ensure that this project will be brought on stream as quickly as possible by seeking EU approval for State aid? Does the Minister envisage that contracts for work in the towns along the route will be put out to tender in the near future? Athlone, Moate, Mullingar and Ballinasloe would benefit considerably from a residential, industrial and economic viewpoint if the trunk line were laid from Dublin to Galway and south to Limerick. This matter is extremely important.
I am intensely interested in this issue. I applaud Deputy Stagg for the work he did in respect of this matter during his tenure as Minister of State. As already stated, Deputy Stagg wrote to the European Commission which sought formal information. We are in the process of supplying that information and the Commission will make a decision on the State aids issue.
Will the Minister indicate her support for this project? I believe she has done so already by submitting the case to the EU Commission. The Minister will agree that this issue concerns rural areas obtaining the infrastructure to allow them to develop in the same way as urban areas. The midlands and the west have suffered in that regard and this project would correct that problem. I ask the Minister and her colleagues to use their power to obtain the necessary funding — approximately £5 million per year — for the project.
I will permit Deputy Jim O'Keeffe to ask a brief supplementary question and the Minister will then conclude.
Like Deputy Stagg I am aware of the Minister's interest in this matter. I would be glad if she could confirm that she is supportive of the effort to extend the pipeline to west County Cork. The Minister referred to the towns of Kinsale and Bandon, which form the nucleus of the proposal for west County Cork, and I take it she is aware that the proposed pipeline extends as far as the Carberry factory in Ballineen? The proposal will involve the erection of power plants by two major industries in the area which will involve selling surplus electricity to the ESB. I hope the Minister will be supportive of efforts to ensure that the surplus can be sold to the ESB at a reasonable price and not at the rock bottom avoidance price which the board tends to offer in such cases.
It is an intriguing prospect and I will communicate with Deputy O'Keeffe when I have considered the matter. Deputy Stagg will be aware that when the previous Government considered the proposal he made through the former Minister, Deputy Dukes, it kicked to touch so to speak.
I did not have time to kick the ball back into play.
The Deputy is no Maurice Fitzgerald.
That is cruel as I come from County Mayo.
We cannot all be perfect.
The background information shows that the previous Government kicked to touch but I will be glad to progress the matter in the best manner possible.
Written Answers follow Adjournment Debate.
