HC Deb 10 February 1983 vol 36 cc1131-2
6. Mr. Stallard

asked the Secretary of State for Northern Ireland whether he will make a statement on the progress of the negotiations on the Kinsale gas link.

The Minister of State, Northern Ireland Office (Mr. Adam Butler)

Negotiations at ministerial level are proceeding between the United Kingdom and Irish Governments about the terms on which natural gas might be made available to Northern Ireland from the Kinsale field. Those negotiations are being pressed forward urgently with a view to reaching an early conclusion, one way or the other.

Mr. Stallard

Is the Minister aware that his reference to urgency will be welcomed by people on both sides of the border in Ireland? In view of the extreme importance of this project to the people of the six counties of the northeast, however, will he tell us more about the funding of the project and when he expects to announce a date for the gas to become available?

Mr. Butler

The hon. Gentleman is absolutely right. The uncertainty must be removed as soon as possible. That is why I am working towards a decision in the near future. The total capital cost is likely to be about £150 million. It is difficult to say when the gas will actually be available to consumers, as that depends on the timing of decisions, but it will probably be about two years after the decision date.

Mr. J. Enoch Powell

Has the Minister a recent estimate of the comparative cost of this project and the project of bringing North sea gas from Great Britain to the Province?

Mr. Butler

I can certainly supply the figures to the right hon. Gentleman, but this was looked at carefully some little while ago. The capital cost of bringing gas, probably from Scotland, made the likelihood of the project's viability extremely doubtful. He must recognise that the costs which have to be compared are those of bringing gas from Dublin to the border and the relatively long under-sea crossing from the mainland.

Mr. Peter Robinson

Did the Government's consideration of this project have more to do with cross-border relationships than energy or economic advantage? Would it not be to the Province's energy and economic advantage if the Government gave greater consideration to the coal industry?

Mr. Butler

Of course the project has cross-border implications, but I assure the hon. Gentleman that these are almost entirely commercial. It would be foolish to deny that there are any political overtones, but, equally, I confirm that the project will not go ahead unless it makes commercial sense.

Mr. Concannon

I always believed and understood that there was spare energy capacity in Northern Ireland and would be for some considerable time. Is it not a fact that if a new source of energy is brought into Northern Ireland it can only be at the expense of the forms of energy that are already there, which are already subsidised by the Government?

Mr. Butler

It is correct that there is today overcapacity in electricity generation, but we are talking about a project which would have a minimum 20-year life. The Government's point of view is that, all things being equal, it is right that the people of Northern Ireland should have the same choice of fuels as others have in the United Kingdom. At the moment they are denied natural gas at reasonable prices.