Joe McHugh
Ceist:352 Deputy Joe McHugh asked the Minister for Communications, Energy and Natural Resources the cost to the State regarding a matter (details supplied); and if he will make a statement on the matter. [34666/09]
Amharc ar fhreagraWednesday, 7 October 2009
Ceisteanna (262)
Freagraí scríofa
The National Oil Reserves Agency (NORA) was established in 1995 to ensure that Ireland holds the equivalent of 90 days strategic stocks that can be released to consumers and industry in the event of an oil supply disruption or shortage. This is in line with Ireland's international obligations, as well as being strategically important for Ireland.
NORA ensures that Ireland meets its 90 day stock-holding obligation through a combination of stocks held in Ireland and other EU Member States, and through short-term commercial contracts to purchase oil in the event of an oil supply disruption. Stocks held by industry in Ireland also form part of Ireland's 90 day stockholding. NORA receives no Exchequer funding. Its activities are funded by a levy imposed on certain oil products in Ireland and charged to oil supply companies. In 2008, NORA received income of €81m from this levy.
The Government's Energy Policy Framework 2007 — 2020 committed to the re-balancing of Ireland's strategic oil stocks, in favour of stocks held on the island of Ireland. In 2009 my Department published a Review of Security of Commercial Oil Supply in Ireland, which was undertaken by international oil consultants Purvin and Gertz, and Irish energy consultants Byrne O'Cleirigh. The report noted that Ireland currently holds one of the lowest proportions of oil stocks within its own borders of all EU Member States. It also noted that Ireland is particularly vulnerable to supply disruptions because of our island status and the fact that 45% of our oil imports are shipped through Dublin port.
In light of these key strategic factors, and NORA's need to maintain a firm financial basis for its ongoing and future activities, in June 2009, I introduced the National Oil Reserves Agency Act 2007 (Returns and Levy) Regulations. The purpose of these Regulations was to increase the NORA levy from 1 cent to 2 cent per litre of fuel purchased from 1st October 2009.
The income from the levy will ensure that NORA has sufficient funds to effectively manage Ireland's strategic oil stocks. It will ensure that Ireland continues to have 90 days of strategic oil stocks available and accessible in the event of a major oil supply disruption.