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Seanad Éireann díospóireacht -
Tuesday, 12 Oct 1993

Vol. 137 No. 9

Adjournment Matters. - Extension of Natural Gas Pipeline.

I thank the Cathaoirleach for selecting this motion and I thank the Minister for coming here.

The extension of the natural gas pipeline from Balbriggan to Dundalk means that some of the major companies in east Meath have been lucky to receive natural gas but it is essential that this pipeline is extended to other industrial areas in the county and the midlands. I say this for a number of reasons. We have an increasing unemployment problem in Meath; our population at the last census was over 106,000, which means a greater demand for jobs in the county and surrounding areas because of the large number of students leaving school each year, apart from those who go on to third level education.

The county council recently had the opportunity to meet two representatives of Bord Gáis Éireann, Mr. Gerry Geoghegan, the general manager of the eastern region and Mr. Paul O'Shaughnessy, the group marketing manager. We put major proposals to them in connection with the extension of the pipeline to Navan and Kells which would ensure the viability of the town of Navan, which in the next ten years, will have a population in the region of 30,000; it will be as big as Dundalk is today.

A number of major companies in the area would benefit substantially from the provision of natural gas. Tara Mines is a major industrial employer with almost 1,000 employees and with the possibility of an extension to the mine or a new mine being developed, there would seem to be another 20 or 30 years of mining in Navan. It is important that costs are kept down in real terms so that this company can compete in the production of lead and zinc.

Workers in Navan Carpets Limited have been for the last number of months, perhaps a year, on a three day week. I believe natural gas would be of major importance to this company. It would ensure the future viability of the plant and the parent company in England would not decide to close such an important and established industry in the town. Clover, a meat plant, was recently established employing in the region of 100 people, and there are a number of other major companies which could benefit in the long term from such a development.

Drogheda, which is only 12 miles away, will have natural gas connected to all the major industrial plants there. The absence of natural gas in the main towns of Navan and Kells in Meath will militate against industry coming to Navan. I say to the Minister that now is the time for action taking into consideration that substantial amounts of Structural Funds are available. Bord Gáis Éireann representatives explained that in the absence of significant grant aid it would not be possible to develop a line from this main line into Meath and the other developing areas of the midlands.

Today, I looked through the National Development Plan 1994-99 and in a synopsis of the proposed plan I note that the total amount to be spent on energy in the period of the plan is £2.137 million. I have no objection to the proposal to extend the natural gas supply to Shannon or to the other proposals in the plan. However, Navan is now a suburb of Dublin. The journey from Dublin to Navan used to take an hour but that time has been substantially reduced and we would like to think that many people would be interested in setting up companies in an area near the major city where developing land is not so expensive. Since we need more industries to provide jobs for our increasing population, this proposal should be considered. As Bord Gáis representatives said, the only hope of this proposal coming to fruition would be if substantial grant aid were made available and this grant aid must come from the Structural Funds. I ask the Minister to favourably consider this proposal.

I would first like to explain to the House that Bord Gáis Éireann was established with a statutory obligation to develop and maintain the system for the supply of natural gas on a commercial basis. Proposals for the extension of the gas field are matters of day-to-day management of the board and are assessed by it in the light of that obligation. I have no function in that regard.

My only role in relation to Bord Gáis Éireann's pipeline construction is set out in the Gas Act, 1976, section 8 (7) of which states that "The Board shall not export gas or construct a pipeline, except pursuant to and in accordance with a consent given by the Minister under this subsection" with the concurrence of the Minister for Finance. Obviously, if Bord Gáis Éireann proposes a particular extension it will require my approval and the concurrence of the Minister for Finance. I am not empowered, therefore, to direct that the gas supply be given to a particular area nor, I believe, should I be.

Having said that, I am advised by the board that natural gas is currently available in a number of areas of County Meath and that the board keeps the possibility of further extensions of the grid under continuous review. I understand, however, that there are no proposals to extend the grid in the county at present as the capital costs, as Senator Farrelly said, could not be justified on the basis of current and projected market opportunity.

The question of Cohesion Funds being made available for extensions of the gas grid has already been examined. The position is that the EC regulation which established the fund confines assistance under the fund to environmental projects and to transport infrastructural projects of common interest to member states. Such projects are required to promote the interconnection and inter-operability of national networks and access to them. These projects, as could be expected, must be partly funded by member states. Expenditure on energy infrastructures, such as the extensions to the gas network, would not be eligible for Cohesion Funding as it does not meet the criteria laid down for assistance under the fund.

I will ask the board of Bord Gáis Éireann to keep the matter under review as a result of the points raised by Senator Farrelly.

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