Economic effects of the petrol supply interruption
The Minister said it would be extremely difficult to measure the interruption’s net effects, and that involuntary fuel savings were not a viable permanent solution. He acknowledged benefits from less private traffic and more public transport, while noting other factors were involved.
asked the Minister for Energy if he will request his Department in consultation with other relevant Departments, to carry out a study which would attempt to strike a balance of national advantage or disadvantage, between (i) the saving of oil imports and the more economic use of constricted oil supplies resulting from the recent stoppage in petrol deliveries on the one hand, and (ii) its harmful effects elsewhere in the economy on the other hand.
Comment on this
: It would be extremely difficult, if not impossible, in a study of this kind to ascertain in any meaningful way whatever economy of fuel consumption that may have resulted from the recent supply interruption.
During the period when distribution of oil supplies was affected oil import savings will have accrued largely from premises left unheated, journeys not undertaken and so on. The public in general were tolerant of such inconvenience in the special circumstances but it would be unreasonable to expect them to accept such inconvenience on a permanent basis unless there was a general shortage of oil world-wide. In so far as industrial consumers of oil were concerned supply was matched to demand either by ad hoc measures, or by drawing on reserves which, in turn, will have to be replenished quickly.
It is not likely, therefore, that there was a significantly more economic use of constricted supplies which could be sustained for an indefinite period.
Comment on this
: The Minister was not in the House a quarter of an hour ago but would he consider, in the context of the question I put down, the material in Question No. 6 on today's Order Paper which refers to a study undertaken by the National Board for Science and Technology on the cost benefits of energy consumption in the Dublin region? Would he consider in particular the admitted superior efficiency with which the Dublin bus services operated during this period on account of the roads being less congested? These are the factors I meant the Minister's Department to look at because they may contain lessons for the future of an overall kind both in regard to energy saving and better use of existing transport, particularly public transport.
Comment on this
: There is another question which touches more closely on that topic. In my reply I am making the point that in so far as the recent situation produced involuntary saving one cannot rely on that kind of approach for a permanent solution. It may indicate the kind of benefits that might accrue from having relatively traffic-free roads for the sake of public transport but it would not help to bring about such traffic-free conditions by contemplating a compulsory shortage of petrol for motorists.
Comment on this
: I do not want to be taken as recommending this although I have done so informally once or twice——
Comment on this
: Suppose we had a permanent built-in system of rationing petrol and oil so that it would not be compulsorily taking people off the road but forcing them to economise at their own pace. Could the Minister not see large scale advantages in a system of that kind on the balance of payments side, the energy conservation side and the quality of life side because of more smoothly moving public transport?