§ The Question was as follows:
§ To ask Her Majesty's Government whether in the light of dramatically increasing oil prices they will now reconsider their decision not to provide a gas pipeline to link Northern Ireland to the national grid.
§ The PARLIAMENTARY UNDERSECRETARY of STATE, NORTHERN IRELAND OFFICE (Lord Elton)My Lords, the Government announced on 23rd July last year that, on the evidence available to them, the supply of natural gas to Northern Ireland by pipeline from Great Britain would not provide a financially viable operation within a reasonable timescale. This remains the case.
Lord DUNLEATHMy Lords, in thanking the noble Lord for his reply, may I ask whether his attention has been drawn to a recent report on the Northern Ireland gas industry, undertaken by Coopers and Lybrand, an independent firm of consultants who I am told are of international repute, whose calculations reveal that the cost of a pipeline would be in the region of £105 million, whereas the cost of running down the gas industry in Northern Ireland could be anything up to £130 million, including the loss of 1,200 jobs? Does the noble Lord not therefore feel, in the light of that report, that there is an argument for reconsidering this decision?
§ Lord ELTONMy Lords, my honourable friend with responsibility for this 1166 matter has had his attention drawn to this report, and it will be examined with interest. The noble Lord will not expect me to comment upon its significance until it has been studied carefully. It has been out for only a very few days. However, it is immediately clear from this latest report that the project would accumulate huge losses over a lengthy period.
§ Lord BLEASEMy Lords, is the noble Lord aware of a letter dated 16th June from the Secretary General of the European Parliament indicating to the Northern Ireland Gas Committee support for the Northern Ireland gas pipeline, from the President of the European Parliament, from the Council of the European Communities and from three of the major specialist committees? If a successful application were made, a grant of something like 40 per cent. would be available. May I ask the noble Lord whether the Government have submitted a proposal about the Northern Ireland gas pipeline to the Council of the European Communities or whether they intend to do so?
§ Lord ELTONMy Lords, I am grateful to the noble Lord for his intervention. Of course, these matters will not be ignored, but the fact remains that any scheme has to be financially viable. The noble Lord would not expect me to give an undertaking that any opportunity would be taken up which resulted in continuing and substantial losses.
§ The Earl of LAUDERDALEMy Lords, is my noble friend aware that at present natural gas is heavily oversold and there is a shortage of it? Can he tell us whether the Government's answer is a once-and-for-all answer, ignoring the possibility of the development of the Morecambe gasfield?
§ Lord ELTONMy Lords, if circumstances change, clearly solutions change; but I am not aware that there is any definite information of any substantial change in the circumstances to which the report was addressed and in relation to which it came out with this discouraging answer.
Lord DUNLEATHMy Lords, can the noble Lord kindly confirm or deny the accuracy of the information which I have received, which is that when even- 1167 tually natural gas from the North Sea or other sources adjacent to the British Isles runs out, gas is likely to be produced from coal at plants adjacent to pitheads and fed into the national grid, thus reducing the reliance of the British Isles or, I should say, Great Britain on imported energy sources, the price of which we have no control over? Therefore, would not the noble Lord agree that Northern Ireland, being part of the United Kingdom, should benefit from this source of energy as well? Would the—
§ Several noble Lords: Order, order!
§ Lord ELTONMy Lords, as I said earlier, changing circumstances result in changing solutions. I cannot look as far ahead as the noble Lord has done into what will happen when we run out of natural gas, but when that happens Her Majesty's Government will have taken thought and come up with a viable solution. The solution which the noble Lord urged upon the House earlier does not, to us, appear to be viable.
§ Lord GISBOROUGHMy Lords, can the Minister say what prospects there are, if any, of finding natural gas in the Northern Irish sector of the Irish Sea?
§ Lord ELTONMy Lords, if it were not a different question, I still could not answer it.
§ Lord BLEASEMy Lords, can I have an assurance from the Minister that he will give urgent consideration to this particular letter and submission from the ECC?
§ Lord ELTONMy Lords, I will of course transmit the noble Lord's concern to my honourable friend.
§ Lord MONSONMy Lords, bearing in mind that some commentators are complaining that Northern Ireland is benefiting from a higher level of public expenditure per capita than other depressed areas of the United Kingdom, would the noble Lord, Lord Elton, not agree that this higher expenditure is at least partially justified by the much higher cost of energy in the Province, which is a considerable burden upon industry there?
§ Lord ELTONMy Lords, the level of expenditure is always adjusted to the needs of the Province. As the noble Lord will know, we are at present reviewing it.
Lord DUNLEATHFinally, my Lords, the noble Lord has kindly said that this report will be studied: can I take it that reconsideration will be given to the decision? I would not ask for reversal, but may I take it that reconsideration will be given?
§ Lord ELTONMy Lords, all I can undertake, as I have already said, is that the report will be studied with care; it will not be ignored.