Gas Industry (Hansard, 10 January 1985)

§ 3. Mr. Nellist
asked the Secretary of State for Northern Ireland what recent representations he has received about the future of the gas industry in Northern Ireland.

§ The Minister of State, Northern Ireland Office (Dr Rhodes Boyson)
Following the Government's announcement on 6 September 1984 that the Kinsale project would not be proceeded with, representations have been made by 888 hon. Members of this House and also by some Northern Ireland politicians, local councils, employer and trade union groups in the gas industry, industrial and commercial concerns and members of the public.

§ Mr. Nellist
Does the Minister agree that his refusal to consider proceeding with the Kinsale gas project signs the death warrant not only for the Belfast gas industry but for 13 other areas, that over 1,200 jobs in Belfast alone, and others in many ancillary industries, will be lost, and that many thousands of homes will be affected? Has he considered the Coopers and Lybrand report of 21 December, which demonstrated the viability of a project to bring natural gas to the Greater Belfast area? Will not a course opposite to that suggested by Coopers and Lybrand cost at least £90 million in the Belfast area alone, with the closure of the gas industry?

§ Dr. Boyson
I remind the hon. Gentleman that the gas industry provides only between 2 and 3 per cent. of energy in the Province, and that the subsidy to it costs about £12 million. It costs £10,000 per man employed in that industry. What one spends on one part of the Northern Ireland block, one cannot spend on another. If, at any time, a viable scheme came before us, we would look at it. We have said simply, not that we will close the industry down, but that we shall not continue to give a subsidy. The Government have made their position clear on that point.

§ Sir John Biggs-Davison
Is my hon. Friend aware that many Conservative Members have felt that Northern Ireland has a right to be on the United Kingdom grid? What progress has been made with the exploitation of lignite near Lough Neagh and elsewhere?

§ Dr. Boyson
I am grateful to my hon. Friend for asking those questions. About 15 per cent. of households in Great Britain are not receiving natural gas, because the gas industry is committed only to providing gas within 25 yd of a gas main and in reasonable quantities.

§ Mr. Skinner
Burn coal.

§ Dr. Boyson
The hon. Gentleman may be a greater expert on coal than on gas. There are people in Great Britain who are not actually plugged in.
We hope that before the end of this month about 200 tonnes of lignite will be burnt at the west Belfast power station. A decision on lignite's future will be influenced by that action. There is no doubt that there are massive reserves of lignite in the Province. There are about 400 million tonnes of lignite in Crumlin alone. Lignite is similarly to be exploited in five other areas in the Province. If we find that we can provide electricity economically by using lignite, the whole energy position of the Province will be transformed.

§ Rev. Martin Smyth
Will the Minister encourage the liquid gas industry by including liquid gas in the fuels eligible for conversion grants and thereby fill the gap, which is growing?

§ Dr. Boyson
I know that the hon. Gentleman is concerned about this aspect. We shall certainly consider seriously the points involved. We shall by no means dismiss that idea and, if posible, we shall ensure that that is done.

§ Mr. Bell
As the Minister has read the report of the joint working group of the Northern Ireland gas employers board and gas trade union group, does he agree with its 889 conclusions that action will be required to save jobs in the gas industry and to remove threats to many more who may be indirectly affected, that a viable gas industry will benefit consumers, and that it will cost less to secure a future for gas in Northern Ireland than to close the present industry?

§ Dr. Boyson
I entirely agree with the hon. Gentleman about the future of a viable gas industry. The Government do not believe that there is a viable gas industry in the Province without heavy subsidisation. It is far better to grasp the nettle and to say immediately that we must find some other fuel which is more economic in the Province than to go on continually subsidising an industry that is slowly dying.