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Dáil
‹ Ceisteanna—Questions. Oral Answers. - National Gas Grid Extensions.

Public Control of Gas Distribution

Summary

O’Malley questioned who would control Limerick Gas and whether the Minister’s preference for public ownership applied across gas companies. Spring said he favoured majority public shareholding, was reviewing distribution arrangements, and had no objection to proposals with substantial public ownership; members challenged this position against the Dublin Gas agreement.

asked the Minister for Energy if he will expand on his recent statement that it is his view that Limerick Gas should remain under public control and that he does not favour private sector control of distribution operations at present conducted by a public utility.

Comment on this

In recent statements I have said that it is my intention that there will be a major public sector involvement in the gas distribution process and that I do not favour private sector control of distribution operations at present conducted by a public utility. I also said that it was my view that the Limerick Gas Company should remain under public control.

I am currently reviewing organisational and financial aspects of gas distribution generally and the role of Bord Gáis Éireann in this context. I will make a further statement when these aspects have been fully considered.

Comment on this

When the Minister talks about the Limerick Gas Company remaining under public control does he mean under the control of Limerick Corporation, under the control of Bord Gáis Éireann, or somebody else?

Comment on this

That is a matter which has to be decided. As I said in my reply, I am reviewing the organisational and financial aspects of the gas distribution generally and the role of Bord Gáis Éireann. My interest is that a valuable natural resource, such as natural gas, should be distributed to the maximum benefit of the people of Ireland. If this is to be done by Limerick Gas Company or by Bord Gáis Éireann, then whichever is in the better interest of the development will be done.

Comment on this

Is the Minister aware that in the proposal put to his Department quite some time ago, which is the subject of this very lengthy evaluation, Limerick Gas Company or Limerick Corporation would hold a major shareholding in that consortium and that another Irish public concern, the Irish Life Assurance Company, would also have a shareholding with the result that under the present proposal there would not be a majority of private interests in the consortium? If so, what is his objection to the proposal put forward on behalf of Limerick Gas Company?

Comment on this

Just to correct a number of matters: firstly, I have never said that I have any objection to the proposals. If there is a major public shareholding, then there will be no difficulties and development will go ahead as quickly as possible.

Comment on this

Does it have to be a majority shareholding?

Comment on this

Yes, my personal preference absolutely would be for a majority shareholding to be held in the public interest.

Comment on this

Does this apply to all the municipal gas companies in the country or only to those at present owned by local authorities?

Comment on this

As I have said already, I am in the process of reviewing the distribution of the natural gas. Each case will be looked at on its merits. I have said publicly, and I have no hesitation about it, that I believe it is in the best interests of the ultimate consumer that the natural gas be distributed with a majority shareholding by a public company.

Comment on this

The question I asked the Minister was: does this ideological sermon that was delivered at Caherconlish, of all places, apply to all gas companies or only to those that are municipally owned at present? Would the Minister answer that question "yes" or "no"? Does it apply to all gas companies, even those that are privately owned like Waterford, Kilkenny and others?

Comment on this

In fairness the question the Deputy has asked me in the House today refers to statements made in relation to Limerick Gas. I am clarifying the situation in saying that there will be no difficulties, that is in relation to the one I am at present considering. The other question the Deputy puts will be looked at in the context of the overall review at present being undertaken.

Comment on this

Would the Minister explain to the House how he reconciles his statement today that a majority shareholding should be held by a public utility with the Government's decision to go along with the deal for Dublin Gas at which he sat around the Cabinet table?

Comment on this

I have no difficulty. The Dublin Gas agreement has been signed and delivered——

Comment on this

Who holds the majority shareholding? It is not public.

Comment on this

As a member of the Government and with collective responsibility, of which the Deputy is well aware, that decision has been taken.

Comment on this

How can the Minister reconcile it?

Comment on this

How can the Minister agree that it is proper that by far the largest gas company in the country, Dublin Gas Company, which distributes far more gas than everyone else combined in the country, should be privately-owned and aided by the Government in a big way in order to reach that objective and these little ones like Clonmel, Kilkenny, Waterford, Limerick and so on should be publicly owned?

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

That would be more appropriate——

Comment on this

The Minister does not reconcile it. Might we say, for instance, that the answer to Question No. 16 might be described as the Cluskey factor, and nothing else because it makes no sense politically, logically or economically?

Comment on this

If the Deputy will look after the Haughey factor I will look after the Cluskey factor.

Comment on this

It makes sense for the impending week-end.

Comment on this
Thomas J. Fitzpatrick An Ceann Comhairle Fine Gael

I am calling Question No. 17.

Comment on this