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Dáil
‹ Ceisteanna—Questions. Oral Answers. - Industrial Employment.

Natural gas for industry

Summary

Kirk asked which industries in Dundalk and Ardee could benefit from natural gas and sought coordination between the IDA and other bodies. Bruton identified likely premium users, said supply would depend on feasibility and cost, and agreed to ask the IDA to discuss coordination with An Bord Gáis.

asked the Minister for Industry, Trade, Commerce and Tourism if the IDA have as part of their industrial promotion of Dundalk identified the particular industries which will benefit most from natural gas being available to them; and if so, the industries.

4.

Comment on this

asked the Minister for Industry, Trade, Commerce and Tourism if his Department will identify the type of industry which will benefit most from natural gas being made available in Ardee, County Louth.

Comment on this
John Bruton Mr. J. Bruton Fine Gael

I propose to take Questions Nos. 3 and 4 together.

The industries most likely to be attracted by the availability of natural gas are those premium users for whom gas is an advantage in the production process, for example, chemicals, glassmaking, pottery and foods. However, as natural gas is widely available throughout Europe its incentive value in its own right is limited.

It is considered that the demand for natural gas, were it to become available, for existing industries in Dundalk and Ardee would be determined largely by the cost competitiveness of gas vis-à-vis other fuels.

Comment on this

Will the long-established industries in Dundalk be in a position to benefit from the availability of natural gas? If we are to accept at face value the Minister's reply, does this not bring into question the economics of the gas line being brought so far in the first place? Was it not part and parcel of the overall benefits of the natural gas pipeline that industrial promotion would get the necessary shot in the arm, in addition to the primary producing areas in the economy like horticulture which will stand to gain very considerably from gas in terms of jobs created, import substitution and so on, provided the gas is made available at a proper price?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

As the Deputy knows the pricing of natural gas to individual users is a matter for An Bord Gáis and their general policy is a matter for the Minister for Energy, not the Minister for Industry. However, it is intended that provision will be made in the design of the northern pipeline for possible offtake to centres located in proximity to the line, such as Dundalk. Any decision to supply a particular industry will be dependent on the technical and financial feasibility of the project. Clearly An Bord Gáis have to more than cover their costs in any extensions of supply. It is my hope, having been involved with others in bringing the supply of gas to Northern Ireland to a happy conclusion, that it will prove of benefit to areas such as Dundalk.

Comment on this

Locally the people who would be interested in the availability of gas feel an effort should be made to co-ordinate——

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

A question, please, Deputy.

Comment on this

——the various survey works in relation to natural gas. In view of the fact that industrial promotion is a key element, would the IDA become involved in this, in addition to those involved in supplying gas, those involved in horticulture and so on, to avoid the possibility of unnecessary duplication?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

I am interested to hear what the Deputy has to say, but I am not aware of there being a problem in this regard. However, I will ask the IDA to enter into discussion with An Bord Gáis to see if anything needs to be done at this stage. We are at a relatively preliminary stage in this process and it is possible that any intense activity that might be undertaken now would be premature.

Comment on this

Is the Minister aware that while there is no particular industry in Dundalk at the moment which would benefit from natural gas, Premier Periclase in Drogheda would definately benefit and it is vital that we get natural gas as soon as possible?

Comment on this
John Bruton Mr. J. Bruton Fine Gael

The Deputy is aware that I know of the problems affecting Premier Periclase.

Comment on this

Would the Minister ask the IDA to approach the other bodies with a direct involvement in natural gas to co-ordinate their efforts?

Comment on this
Mr. Bruton

That is precisely the purpose of what I said.

5.

Comment on this