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Dáil

Ceisteanna—Questions. Oral Answers. - Kilkenny Natural Gas Supply.

asked the Minister for Energy when the Government will decide to provide natural gas to Kilkenny; and if he will make a statement on the matter.

Comment on this
Dick Spring Minister for Energy (Mr. Spring) Labour Party

Proposals for a supply of gas to Kilkenny are being re-examined by Kilkenny Gas Company and BGE. The Deputy will be aware that an earlier approach had to be abandoned because the proposals would not give a viable project. I will have to await the outcome of the renewed investigations before I can comment further, and I am pressing both sides, Kilkenny Gas and BGE, to press forward with all possible speed.

Comment on this

Can the Minister give a firm indication as to when a decision may be made, particularly in view of the fact that there was a similar question to the Minister several months ago when he indicated that the provision of a supply of natural gas to Kilkenny was not a viable proposition? Can he indicate now when his Department will be in a position to announce that Kilkenny is to be supplied with natural gas? The Minister will note that on this occasion my question is "when" rather than "if" natural gas will be supplied to Kilkenny.

Comment on this

To be fair to the Deputy, he will recall that on a previous occasion a project put forward for Kilkenny was rejected on the basis that it was not viable. I then sought another method of bringing gas to Kilkenny and an assessment in that respect was undertaken. Consultants were engaged for that purpose. I do not like indicating a firm time scale because if I say, for instance, that something will be dealt with in a matter of weeks, and if that is found not to be sufficient time, I then have to come back to the House and explain the delay but I assure the Deputy that I am determined that a decision in respect of the supply of natural gas to Kilkenny will be made as a matter of urgency.

Comment on this

The Minister may be aware that one of his colleagues in Coalition announced by way of the local papers that Kilkenny definitely will be supplied with natural gas. I should like the Minister to confirm or deny that. Can he say also whether the present investigation involves the supply of natural gas to Smithwicks Brewery who were involved in the original application?

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

That seems to be a separate question, so far as the brewery is concerned.

Comment on this

If the proposition is being investigated, I would expect the Minister to have that information.

Comment on this

The indications to date are positive, that Kilkenny should be receiving gas, a move which I would consider to be in the interest of the community and of the city. Smithwicks are not involved in the project. It is now a stand alone project for the city of Kilkenny.

Comment on this

If the project were found not to be viable with the participation of Smithwicks who would be a huge consumer, it is difficult to understand how it can be considered viable in terms of supply to householders only. Kilkenny Gas Company have been in a limbo for several months. The Minister must appreciate that their position is desperate. I am asking him to make every effort to give a firm decision in this case as soon as possible rather than to play the type of politics that we have witnessed in the past couple of months.

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

The Deputy is engaging in argument.

Comment on this

There are two aspects to the question. First, there is the matter of viability. One must consider the question of capital expenditure and the securing of other commercial markets. On that basis I am confident that we will bring about a viable product and I can assure the Deputy that that will be done as soon as possible.

Comment on this

Does the Minister's new approach to the supply of natural gas to Kilkenny involve any participation of equity by BGE?

Comment on this

Not at present.

Comment on this

May we take it from that that the Minister is about to do a u-turn on his stated policy in relation to the provision of natural gas, because a long time ago he said that no private company who do not have majority public sector ownership would avail of natural gas?

Comment on this

I have not been guilty of any u-turn in relation to natural gas policy. Where projects have been public sector ones, they have remained in the public sector. I am confident that a viable project can be put together for Kilkenny and any such project will have my support.

Comment on this

The Minister seems to have a very short memory. I do not have with me the Official Report concerned but I shall extract it this afternoon and send it to him——

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

This is not a question.

Comment on this

——so that he may read his statement that unless a company had majority public sector ownership, they would not avail of natural gas. That is exactly what happened in Limerick.

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

I am calling the next question. We must have co-operation.

Comment on this

I shall then await the Minister's reply regarding his u-turn vis-à-vis that statement.

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

We must move to Question No. 2.

Comment on this

Have the Coalition resolved their differences in relation to their approach to this area?

Comment on this