Dáil Éireann debate -
Tuesday, 2 Jul 1996

Vol. 467 No. 7

Written Answers. - Inter-Departmental Discussions.

Brian Cowen

Question:

397 Mr. Cowen asked the Minister for Agriculture, Food and Forestry the outcome of the discussions between his Department and the Department of Transport, Energy and Communications, adverted to in a reply to a parliamentary question in December 1995, regarding the need for An Bord Gáis to reduce its prices to tomato growers on the basis that these growers were encouraged to convert to the use of natural gas in 1988 on the basis of a Department commitment that stated that gas prices would remain competitive with oil prices; the steps, if any, that are being taken as a result of these discussions to alleviate hardship of the farmers involved in tomato production; and if he will make a statement on the matter. [14383/96]

Minister for Agriculture, Food and Forestry (Mr. Yates)

I am not aware of a parliamentary question on this subject having been replied to in December 1995.

I wrote to the Minister for Transport, Energy and Communications last February regarding the price of gas to tomato growers. In reply I was advised that the Minister of State at the Department had been informed by Bord Gáis Éireann that the company had entered into supply agreements during 1989-90 with a number of growers under the general auspices of the Irish Commercial Horticulture Association. On expiry of the bulk of these agreements in 1993, new prices were negotiated with a team nominated by the association. At the end of 1995 BGE again negotiated new agreements, on this occasion with IFA representing growers. BGE has stated that its policy has always been to negotiate prices which are competitive with alternative fuels and they are satisfied that, on balance, growers have been favourably treated over the past few years when compared with industrialcommercial customers in general.