I thank the Chair for the opportunity to make a brief contribution on the proposed sale of INPC to Tosco Corporation. My real interest which is in Whitegate Oil Refinery goes back to the 1950s when it was built. I did not have any great interest in the refinery in the 1950s but I had an interest in the sweets I received from those working there. That is something I have never forgotton. Down through the years, the refinery met troubled times and finally ended up closing in 1979. Since then, negotiations have taken place between the Government and the owners and in 1982, the Government decided to take over the refinery.
In February 1982, I was elected to the Dáil and my first function as a TD was to go to the reopening with the then Minister, Deputy Albert Reynolds. Since then the refinery has progressed and stayed in operation. In difficult times it provided a good service to the country. However, it has had to put in large investment to keep it up to date in order to meet the environmental standards and requirements imposed and demanded by the public.
Without the mandatory regime, it would not have been able to survive. The problem facing this Government and others in recent years was the power of the Government to ensure that the mandatory regime would continue in place. With the refinery facing further costs of about £100 million to £200 million by 2005 to meet the Auto Oil II requirements, it was incumbent on the Government to look at all the aspects of the future of the refinery and especially the issue of whether the refinery, out of its own resources, would have been able to finance the refurbishment and upgrading that would be required in future years. The Government wisely took the best decision to ensure the continuation of the refinery so that the employees would be assured of the future of their jobs.
As the Minister made quite clear in her speech, over the last year detailed negotiations were carried out with many different bodies that were interested and finally a decision was made that Tosco Corporation was the best of those who were interested. Even though people in this part of the country were not aware of Tosco Corporation, it is now clear that this is one of the big players in the United States and will become even more important following the merger with Phillips Petroleum Corporation. It will be moving into Europe for the first time and I believe it sees Ireland as being the ideal stepping stone to moving to this part of the world.
It has met the considerations that the Government felt were necessary for the sale. The Tosco Corporation is guaranteeing the operation of the refinery and the oil terminal in Whiddy for at least 15 years on a fully commercial basis and that is without the support of the mandatory regime. It has given a further undertaking to maintain existing jobs and conditions of employment. Those are the two main areas that the workers to whom I spoke were concerned about. I take the word of the Minister that this undertaking copperfastens the number of jobs and the conditions of employment.
It has given a substantial undertaking to continue to operate the refinery and oil terminal for at least 15 years. We have had an example of another organisation in the constituency, which took over a semi-State company five years ago and that company gave an undertaking to operate for five years. Even though this was a different business, they held to the conditions and I believe that this business will continue to operate after the 15 years.
Security of supply was raised. Some people have asked whether the national oil reserves will be under the control of the National Oil Reserves Agency – NORA. I am glad the Minister has clarified that the 90-day stocks of oil, in compliance with international obligations, will be maintained under the control of the National Oil Reserves Agency. The Minister has confirmed that NORA is not part of the transaction and will continue to operate in the state sector. It is very important that the national strategic stocks will still be under Government control.
The mandatory regime will be abolished and INPC and the State will not be faced with the burden of future investment requirements beginning with Auto Oil II in 2005. As I said earlier, this is a vital element of the decision the Government has made. It would have been an unbearable burden on the State and on INPC to find the finance to fund the upgrading necessary to comply with Auto Oil II.
An ESOP is being set up and this will be very beneficial to the workforce. From speaking with them I know they are delighted with the approach the Minister is taking on that. Pensioners and current employees raised concern about the pension fund. They wanted confirmation that the pension funds would be guaranteed into the future. From our committee meeting last week as well as the legislation that is in place, I know that the pension funds of the refinery workers come under the current legislation. They have no need to worry about their pensions.
At our committee meeting last week, I raised the issue of the land. Unfortunately, I did not get a reply as a vote was called. There are approximately 140 acres of land not being utilised by the refinery. Many farmers in the area have been asking if the State could sell some of it to local farmers. Will the Minister comment on that in her reply? Although I would prefer the refinery to be maintained in the control of INPC, we have to look at the facts and judge how future events will develop. In that context, the decision taken by the Minister is the correct one and, in the years to come, we will still have a refinery in Whitegate, with the standards of safety, health and community participation which have operated over the past 30 years. The refinery has been a welcome feature in the East Cork area and if, as we hope, it is maintained by the new management, I have no doubt it will retain that esteem in future.