Vol. 530 No. 3
35 Dr. Upton asked the Minister for Public Enterprise the position in relation to the North-South gas pipeline; if the promoters of the pipeline have accepted the argument for a public service levy; and if she will make a statement on the matter. [3686/01]
I assume the Deputy is referring to the proposal by Premier Transmission to build a pipeline from Belfast to Dublin. The proposal was promoted by Premier on the basis that it would be able to get one or two new power stations in the Dublin area to sign contracts with it for gas supply. While Premier Transmission made very positive public statements during the early part of last year about its expectation of being able to attract customers for its proposal, the economics of the proposal have not been advised to me, nor has a formal application for consent for the construction of the southern portion of such a pipeline been made.
I have been informed by Premier that its proposal with regard to a North-South pipeline would not be developed with the introduction of a public service levy and I am not aware of any change in its position on the question of a levy. I want to emphasise that the proposal for a levy is to support the concept of postalised transmission tariffs which is objectively justifiable and is neutral in regard to its impact on competing new gas import projects. At this stage, I am not aware of any further developments in relation to Premier's North to South pipeline nor can I say if it has accepted the argument for a public service levy.
I strongly support the Minister's policy of postalisation and concur that there is a public service obligation to fund it. Does the Minister of State agree that the former British gas company, Premier Transmission, together with Keyspan, a syndicate of an American and former British company which was privatised, is really seeking a free ride without meeting any public service obligations? Does he agree the company is seeking to dump its surplus gas supply from the pipeline built between Scotland and Belfast into the Republic? I strongly urge the Minister to reject any such attempt.
I welcome the Deputy's support in regard to the principle of postalisation. Efficient implementation of postalised gas transmission tariffs may require a transparent intervention mechanism such as a levy. From a State aid point of view, any such proposal would require EU clearance. It would also necessitate primary legislation and independent operation. It is proposed to ask the Commission for Electricity Regulation, when it is empowered to deal with gas related matters, to advise on the least costly intervention mechanism. The legislation required to confer such powers will be introduced in the near future. The commission will also be charged with the implementation of the eventual regime.
It would appear from the Minister's reply that the North-South proposal is in abeyance. Perhaps I am stretching my question slightly but can the Minister provide any information on the dual interconnector between Dublin and Scotland? If a decision has not already been made on this matter, when can we expect it?
I strongly favour the construction of a second interconnector between Scotland and Dublin in the interests of security of supply. The issue is currently being examined by the Government and a decision will be made in a matter of days rather than weeks.
Perhaps the Minister of State's senior colleague could indicate whether the decision has already been made.
The Deputy is straying from the subject of this question.
