Dáil debates

Wednesday, 1 October 2008

7:00 pm

Photo of Michael D'ArcyMichael D'Arcy (Wexford, Fine Gael)

This Private Members' motion is rather timely as we face into the winter. When one sticks one's head outside the window, one can see why fuel poverty levels are increasing. I wish to focus on two issues, the first of which is the price of fuel.

Over the summer, my attention was drawn to the difference between the speed at which the price of fuel is increased when the price of crude oil increases on the world markets and the length of time it takes reductions in the price of crude oil to be passed on to consumers. I do not blame those who work at the forecourts, those who drive lorries or those who deliver home heating oil, but the four or five companies that supply such people. When I raised this matter at a meeting of the Joint Committee on Communications, Energy and Natural Resources, all my colleagues on that committee agreed to invite representatives of the companies in question to address the committee. I do not think the House will be surprised to learn that the companies have been unhelpful. I am being polite when I use the word "unhelpful". I could use some other words to describe them.

If we are to ensure that a cartel is not in operation, we need to get the companies to explain the pricing regime that is in place. We need to ascertain whether the companies are operating at a margin that is not the maximum they can get. Those are two very different things in business. Far too often, companies and organisations operate on the basis of getting what they can from consumers and there is no oversight system to prevent them from doing so. People often suggest that this House and its committees are irrelevant. I intend to use the committee system to pursue this matter. I thank my colleagues on the committee, some of whom are in the Chamber this evening, for their support in this instance. We will not accept any refusal on the part of the companies in question to come to the committee to explain how their pricing systems operate and how their business is conducted. I hope we will achieve a positive result for consumers. It seems that while fuel prices can be increased overnight, it can take a week for price decreases to be implemented. Consumers potentially have to endure five or six days in which prices remain high even though reductions should have been passed on to them.

I am also concerned about social welfare payments, particularly the fuel allowance payment. The payment is too high in the summer and too low in the winter. The Department has not agreed to permit its customers to carry amounts over from the summer to the winter if they wish to do so. At this time of high prices, a tankful of oil can cost up to €800. Prices fluctuate by up to €20 all the time. It is important to provide for flexibility within the scheme so that people who do not use all their entitlements during the summer can carry them on to the following winter. I do not think that is an outrageous proposition. I am trying to help those who need the fuel allowance scheme most, rather than calling for a carte blanche to be applied to the operation of the scheme. As other Deputies have said, the elderly need this allowance because they are most susceptible to the effects of the cold. We should offer them the option I have mentioned. If the Minister is to do anything on foot of this debate, he should change this aspect of the scheme. It is within his power to do so.

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