Dáil debates

Thursday, 24 March 2022

Saincheisteanna Tráthúla - Topical Issue Debate

Fuel Prices

2:45 pm

Photo of Ossian SmythOssian Smyth (Dún Laoghaire, Green Party) | Oireachtas source

I thank the Deputy. The first item I will address relates to procurement and State contracts. I refer to situations where a person entered a contract with the State to provide a service but the cost to the person of diesel has greatly increased. This is a specific case of a problem in procurement where inflation has made the economic reality of the contract difficult for the contractor to fulfil. An information note was produced by the Office of Government Procurement, OGP, which reports to me through the chief procurement officer, to address inflation questions, particularly in the context of the construction sector, but not on fuel. I will discuss that with the OGP and I am willing to revert to the Deputy specifically on that question.

On the issue of the National Oil Reserve Agency, NORA, I agree the value of the agency is clear to see. This is not just an Irish system; it is across the EU so that the whole of the EU has a 90-day buffer. It is incredibly important that we have it. If the Deputy has further questions on it, I will be happy to engage with him in that regard.

The Department of Transport and the National Transport Authority, NTA, regularly engage with operators on the evolving situation and the impact the Ukrainian crisis is having on operators' ability to provide public transport services. I reassure the House that CIÉ operators hedge the vast majority of their fuel in advance and, as such, are largely sheltered from the current rising fuel costs. As I outlined earlier, the commercial bus operator, CBO, supports have now been extended to the end of June 2022 and additional levels of subvention have been provided to support Local Link operators with managing the rising costs of diesel and in order to ensure the continuation of these essential services.

In addition, the Department of Transport participates in the EU contact network, which comprises all member states and representatives of the European Commission. This network, established in response to Covid-19, is now solely focused on the Ukrainian conflict. At its meetings, the network receives reports on transport-related impacts at the EU-Ukraine border, including the impact on supply chains. As the House is aware, more than 10,000 refugees from Ukraine have arrived in Ireland to date. A cross-departmental team is looking at all issues arising in the context of Ireland's response to the humanitarian crisis as residents of Ukraine seek refuge away from the war zone, including the consideration of any further measures that may be needed to assist people fleeing the conflict. In this context, the NTA recently decided to allow free travel for newly arriving Ukrainian refugees on any public service obligation public transport service from point of entry to their end destination.

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