Oil price reductions for CIE
Wilson asked whether CIE and other transport companies would fully benefit from lower oil prices despite excise duties. Boland said CIE’s supply prices were for negotiation with suppliers and review by the Prices Commission and the Minister for Trade, Commerce and Tourism, while excise was primarily for the Finance Minister.
asked the Minister for Industry and Energy if the reduction in the price of ex-refinery world oil prices will be passed on in full to CIE.
Comment on this
The price of oil to CIE is primarily a matter for negotiation between that company and their suppliers but is presumably subject to review by the National Prices Commission and the Minister for Trade, Commerce and Tourism in the context of price control of the oil industry.
As far as supplies from the Whitegate refinery are concerned, CIE themselves are not direct customers of the refinery. The suppliers of oil to CIE will benefit from the significant reductions in ex-Whitegate prices from 1 April. It is assumed that the cost of oil imported directly by these suppliers will decrease also in a manner consistent with the downward trend in producer prices for oil.
Comment on this
In view of the fact that the Minister for Finance has stated that he will take into the Exchequer some of the reduction by way of excise duty will the Minister assure me that CIE, B & I, Aer Lingus and Irish Shipping will benefit fully from the drop in world prices?
Comment on this
The price of oil to CIE is a matter for negotiation between the company and the suppliers. The question of the price of these supplies is primarily a matter for the National Prices Commission and the Minister for Trade, Commerce and Tourism.
Comment on this
Is the Minister stating that the amount of excise duty taken is not a matter of concern to his Department and that he will not have any impact on the negotiations between CIE and the suppliers?
Comment on this
The amount of excise duty that might be charged for oil products is a matter primarily for the Minister for Finance. The question of the price of oil products to consumers is a matter for the Minister for Trade, Commerce and Tourism.
Comment on this
Will the Minister agree that it is crazy Stone Age economics to have the Minister for Finance taking money from CIE in excise duty and sending it back via the Minister for Transport to the tune of £86 million to CIE by way of subvention? Is that not Crazy Horse economics?