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Dáil
‹ Ceisteanna—Questions . Oral Answers . - Coal Imports .

Long-term coal procurement

Summary

The Minister said coal purchasing had traditionally been handled by importers, while the ESB was evaluating supply inquiries and he was considering national coordination. He doubted fixed-price, long-term contracts were realistic, and confirmed substantial US imports and further negotiations.

asked the Minister for Energy whether he or the ESB has under consideration the negotiation of an agreement or agreements with a coal-exporting country or countries to maintain long-term supplies to this country at a pre-determined price.

Comment on this

: In so far as current requirements of coal are concerned the actual negotiation of agreements with coal suppliers in exporting countries has traditionally been a matter for the Irish coal importers themselves.

With regard to the ESB, the board have issued an inquiry for coal supplies for Moneypoint generating station to major, coal producing countries and suppliers. The replies to this inquiry are being evaluated at the moment but no decisions will be taken for some time.

I have been considering how best the procurement arrangements for coal could be co-ordinated or centralised on a national basis in the light of the much greater overall demand for coal imports which will arise when, in due course, substantial requirements of the ESB and large industrial users have to be met in addition to traditional demand. I have not, however, reached any conclusions on this question.

Comment on this

: Would the Minister agree that there is roughly a similar case to be made in regard to effective management of the coal market as there is to be made in relation to oil purchases? Would he look favourably at the course which might follow, that we would have a national coal-buying agency analogous to the petroleum corporation?

Comment on this

: It is possible that my conclusions on that question would embrace that kind of proposition. As I have indicated, I have been considering a procurement arrangement so that the buying could be co-ordinated on a centralised or national basis. The Deputy will appreciate that even in the case of the National Petroleum Corporation they are dealing with only a certain percentage of the market and that that corporation was set up in response to a movement which has taken place through our oil producers favouring a Government to Government contract. Such a movement is not terribly obvious in the coal business over the years at least in dealing with, say, communist countries. While I am trying to co-ordinate the coal-buying arrangement on a national basis and we might end up with something like the INPC, I would not like to indicate at this stage that that was the best solution.

Comment on this

: I agree that the pattern has not worked out comparable with the way it has worked in the oil market, but it would be a great advantage to us perhaps in regard to a friendly country with large coal resources, such as India with which we have trade links, in trying to negotiate long-term contracts with selling rights so that whatever happens will reflect on the oil market for years to come.

Comment on this

: It would not be realistic to think that it was open to us to negotiate a contract for the purchase of coal from any country in which there would be a fixed price for a very long period. No information available to me suggests that that is a real possibility.

Comment on this

: I am asking the Minister whether we are importing any large quantities of coal from America. Is he aware that there are available on a long-term basis very large quantities of coal, provided those can be contracted for by either a Government or a Government agency, which are perhaps much more attractive than what we are importing at the moment?

Comment on this

: Is the Deputy referring to America in the later part of his question?

Comment on this

: Yes.

Comment on this

: There are substantial quantities of coal being imported from the US at present and negotiations are in progress for further imports from the US. As regards the availability of coal from the US on a Government to Government basis on the terms outlined by him, I am not so aware.

Comment on this

: A Cheann Comhairle——

Comment on this
Padraig Faulkner An Ceann Comhairle Fianna Fáil

: Ceist a Sé, le do thoil.

Comment on this

: Could I ask the Minister——

Comment on this
Padraig Faulkner An Ceann Comhairle Fianna Fáil

: I have called Question No. 6.

6.

Comment on this