Natural gas supply to Mallow
O’Keeffe urged an early supply for Mallow’s food-processing industry and asked about pricing and feasibility. Collins said Mallow would come only after existing town-gas centres, likely more than six months away, and that gas prices would track heavy fuel oil rather than coal; the exchange also included a lengthy dispute over Question Time procedure.
asked the Minister for Industry and Energy his plans to supply natural gas to the food processing town of Mallow, County Cork.
Comment on this
As the Cork-Dublin pipeline has been successfully completed I now intend to move ahead as quickly as possible to consider the supply of gas to other population centres where this can be done on an economic basis. My first priority will be to look at centres with existing town gas industries since these should be in a better position to achieve the kind of rapid market expansion required to maximise sales in the premium market. If such developments are proceeded with the next logical step would be to consider expansion of the grid to centres, which although not having the advantage of an existing town gas industry, are close enough to the Cork-Dublin pipeline to justify connection. Mallow is among the centres which will be considered.
I would like to make it clear that before I will approve an allocation I will have to be satisfied that any project to extend the natural gas supply is economic and has acceptable prospects of commercial success.
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It is urgent that a place like Mallow would have a supply of natural gas due to its food processing ability. It is one of the largest food processing towns in Munster and 100 million gallons of milk and 90,000 acres of sugar beet are processed there.
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Natural gas is the ideal fuel for the food processing industry due to its low cleaning content. Is the Minister aware of that? Instead of fiddling around with pipes all over the place, will he concentrate his work on food processing, an industry which is so much neglected and under such stress and strain? If we are to survive as a food processing nation we must have a source of cheap fuel available.
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While I appreciate the Deputy's concern for Mallow and for the food processing industry, it would be proper of me to say that I have met a deputation from ICOS to discuss the pricing of natural gas. In the context of Mallow, in the logical evolution of a gas grid Mallow would come at, say, phase 3 of that development.
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Is the Minister prepared to make the gas available to the food processing industry at the same price as to NET and the ESB? Will he consider if it is feasible to make it available at Mallow?
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We must have the pricing on a level and the food processing industry is as important as the electricity supply because it is a wastage to have natural gas——
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I dislike intensely to appear to be arguing with the same Deputies, but Deputies must confine themselves to asking questions. It is not in order to make points at Question Time.
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The Minister of State has just said that the price at which natural gas will be supplied in due course to the food processing industry in Mallow is a separate question. I submit to you, Sir, that surely the question deals with his plans to supply natural gas to the food processing town of Mallow. Surely that wording includes the price at which the gas will be supplied.
Comment on this
The Leader of the Opposition will appreciate that the Chair has no control over how these questions are answered but he would encourage Ministers not to make long statements in answer to questions.
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Is the Minister of State aware of its potential for the food processing industry because of the clean type of fuel it is and no storage is involved? Will he make it available to the industry at the same price as coal rather than talk about the price of black oil?
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Yes, I am aware of the high quality of natural gas as an energy source. The policy of my Department will be to relate the price of natural gas to heavy fuel oil prices rather than to coal prices, and industries which are interested in getting a supply of natural gas should consider the pricing of natural gas in that context which I have just mentioned.
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Has the Minister of State yet made a decision on policy of gas allocation to the co-operative industry in the south?
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No decision needs to be made by me except in the context of the overall development of a natural gas grid. It would be up to any major food industry to come along with an application to my Department for consideration.
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Is the Minister of State aware that the applications are already in his Department? I understood him to say that he had already met representatives from down there. That would indicate to me that he has applications but he has not decided on them.
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We are having a debate. It is obviously not a suitable topic to deal with on a question.
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Could I make a point? It is difficult for the Opposition to find a suitable form for discussing questions. I have had questions down here which have been disallowed on policies relating to Ministers.
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On a point of order, where is the forum to find out what a Minister's policy is in relation to his Department if not at Question Time?
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The Chair can only rule on these matters as they come up and the Chair is ruling now that a long shifting of policy debate is not in order at Question Time. The Chair can only refer the Deputy to the Book of Standing Orders.
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If a question arises that a Deputy needs to elicit information on a policy matter relating to the direct responsibility of the Minister concerned, surely Question Time is the forum for such a question?
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The Deputy knows perfectly well that what we have been having here recently is an exchange of views at Question Time, which is not in order. Deputies want to make a point or to elaborate and that is not in order at Question Time. Questions should be short and concise and in the form of questions.
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I am asking the Chair for a direction, for assistance in how to elicit information from the Minister opposite if the Chair will not allow it at Question Time.
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It is not my business to find fora. It is my business to interpret and enforce Standing Orders.
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It appears to be the Chair's business at this stage to protect Ministers because the Chair is ruling out questions ad nauseum.
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I will withdraw it and would be only too delighted to visit the Ceann Comhairle in his office to point out that the Ceann Comhairle is acting against Opposition spokesmen who are trying to get information on policy matters — not related to the management of semi-State bodies.
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I said that I would repeat the allegation in the Ceann Comhairle's office. Due to various circumstances, I have already withdrawn the allegation in the House.
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Could I ask a final supplementary question? Is the Minister prepared to put a time limit on the availability of gas to Mallow. Will it be three weeks, three months or six months?
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I can assure the Deputy that it will be more than six months. First of all, we have to supply town centres with existing gas utilities. Only after that is done can we consider going further.
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Does the Minister realise the wastage? Natural gas is very suitable for industry. It is not very suitable for generating electricity because there is a transmission loss. Would the Minister have a feasibility study introduced as to the best economic way of using this resource?