andMr. Kelly asked the Minister for Industry, Commerce and Energy if he is aware that it is projected by the FAO that the excess of world supply capabilities over demand for nitrogenous fertiliser is expected to grow steadily up to 1981-82; if he expects this trend to continue beyond that date; if any assessment has been made of the effects of this on the economics of and employment in nitrogen production here; and the action, if any, it is proposed to take in the matter.

I am aware of the projection by FAO of an excess of world supply of nitrogenous fertiliser over demand in the years up to 1981-82. While it would not be prudent to forecast whether this trend would change immediately after that year, one has to bear in mind that over-supply could have a deterrent effect on new investment, and so contribute to better balance in the market. The market situation is continually under review by NET and they advise me that they envisage no particular difficulty in the disposal of their output. It is not proposed, therefore, to alter the planned development in this sector in Ireland.