Dáil debates

Wednesday, 12 March 2008

1:00 pm

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Question 82: To ask the Minister for Communications, Energy and Natural Resources the steps he is taking in view of the increase in oil prices and the failure of the Government to provide sufficient public transport on time as an alternative to the use of the private car; the steps he is taking to ensure fair pricing of petrol prices across the country; and if he will make a statement on the matter. [10953/08]

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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The Irish oil industry is fully privatised, liberalised and deregulated with free entry into the market. Prices at the pump reflect global market price, transportation costs, euro-dollar fluctuations and other operating costs. Neither my Department nor the Government has any role in the control of oil prices.

The Government has no plans to introduce measures on transport fuel prices, given the fully liberalised nature of the market and the roles and responsibilities of the Competition Authority and the National Consumer Agency. The Competition Authority is a statutory independent body with a specific role in the enforcement of competition law. The National Consumer Agency has specific responsibilities for protecting the rights of consumers. Its function is to ensure competition works optimally for the benefit of consumers.

Ireland's high dependence on imported oil makes us price-takers, sensitive to the volatility of the markets and reflecting the combination of world prices and the relative strength of the euro against the dollar. It is bad for competitiveness and exposes us to security of supply risks. It is also unsustainable in environmental terms and climate change.

Addressing our dependence on fossil fuel imports must be a key priority. The Government has committed to a range of actions in the energy policy framework and the programme for Government to break that dependency. In addition to accelerating the deployment of renewable energy in electricity, transport and heating, the implementation of wide-ranging energy efficiency and demand management programmes are the major immediate priority. The roll-out of the national energy efficiency action plan in the coming months will set out the Government's measures and programmes in detail.

The Minister for Transport, Deputy Dempsey, will finalise the sustainable travel and transport action plan later this year, informed by the recently launched public consultation process. I am working with him and the Minister for the Environment, Heritage and Local Government, to deliver a sustainable energy future across all sectors, including the transport sector. Improved public transport sustainable infrastructure, radical energy efficiency and demand management strategies are key to achieving a sustainable transport future for citizens and the economy.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Has the Minister any sympathy for the poor unfortunate motorist who is suffering a double whammy? The Government is responsible for a range of delays in public transport projects and has not provided the necessary public transport infrastructure. Many motorists do not have the choice to take public transport. On the other hand, the cost of petrol is rising at a staggering rate, and more importantly the cost of diesel has outstripped it.

Surely the Minister is concerned about this change, particularly with his emphasis on more energy efficiency. There is also the importance of using energy resources that create less carbon emissions. Through the tax system motorists are encouraged to opt for diesel vehicles. However, filling up on diesel costs more than petrol, the more environmentally damaging fuel.

The Minister cannot simply throw up his hands claiming he has no role in this matter. Why does he not call in the oil companies to discover what happened to the price of diesel? How about getting the Commission on Energy Regulation on board? Issues have arisen that are the Minister's responsibility which must be addressed. Organisations such as the AA, have raised the regional disparity in fuel costs and the difference between petrol and diesel costs which are, or should be, the Minister's concern. Whatever big plans or strategies the Minister has, they are in the future. What is happening must be of concern to the Minister.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I have sympathy for anyone affected by rising costs. However, if we are to protect the public interest, we must divert from using oil products. We consume 165,000 barrels of oil every day; on average, ten pints of oil for every man, woman and child. In the long term if we are to protect our people from a peak in global oil production and a reduction in the availability of oil supplies, there is an urgent requirement to reduce our oil dependence across many sectors, such as heating, power generation and transport.

We are responding to this in proper policy terms. I have appointed a firm of leading international oil experts, Purvin & Gertz Inc., to undertake a detailed review of security, supply and access to commercial oil supplies, including examining all internal markets and how oil is delivered. That is the proper policy approach to learn what appropriate interventions and measures need to be taken, be it in storage, supply chain, and so on.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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Why does the Minister simply talk to the oil companies? I support the Minister's long-term plans but I find it hard to accept that in the mean time diesel has outstripped petrol in costs. An average family car fill-up of petrol will costs €66, while diesel will cost €67.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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The time for this question has expired.

Photo of Liz McManusLiz McManus (Wicklow, Labour)
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That is of concern because it means people will be attracted, by price, to a more environmentally harmful fuel. The Minister must take action on this.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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I am obliged to call the next question.

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
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I can and do talk to the oil companies. I like to do it on the basis of proper policy analysis.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Ceann Comhairle)
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I call on Question No. 83 in the name of Deputy Coveney.