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Dáil Éireann debate -
Tuesday, 12 Jun 1973

Vol. 266 No. 2

Committee on Finance. - Adjournment Debate: Oil Refinery Policy.

I raised this matter on the Adjournment because, when I asked a question concerning oil refineries today, I received several answers to questions I had not asked the Minister for Industry and Commerce. I appreciate that the Minister for Education was replying on behalf of the Minister for Industry and Commerce. I asked the Minister if a policy had been adopted regarding the building and siting of oil refineries in any part of the country and, if so, if he would state the policy. The Minister, in his reply, stated that the selection of a location for any industrial project was primarily a matter for the promoters.

Any project, of course, could mean a sweet factory, a footwear factory or a toy factory but, certainly, not an oil refinery. The Minister, in his reply, went on to tell me that in the ultimate the Minister for Local Government would be the deciding factor. I knew that this was the position to some extent but the strange thing about the Minister's reply is the fact that he never mentioned the Minister for Transport and Power, who plays a big part in the sanctioning, or otherwise, of oil refineries.

Most oil refineries suggested for this country will be sited in coastal areas. The one suggested for Dublin, planning permission for which has been refused by Dublin Corporation Planning Committee—a decision which I welcome— was to be sited in a coastal area and. consequently, needed the sanction of the Minister for Transport and Power. The Minister for Transport and Power would have to issue a works harbour order before the promoters of the refinery could claim land on which to build such a project.

For these reasons I find it hard to understand why the Minister, in his reply, tells me that the Minister for Local Government is the final arbiter on this matter. This shows the poverty of thought in the Department when they do not know which Minister is the final arbiter. I understand that in the case of the Dublin application one of the reasons given for its rejection was the fact that. while the land had been zoned for industrial purposes, the water had not been zoned for any such purpose. It is not possible to plan or zone an area that does not exist. No land exists on this site and, consequently, the refinery could not be built. If one was to accept the Minister's reply to my question at its face value one would imagine that the Minister for Transport and Power had no function in the matter.

I am emphasising this to show that this question (a) had not been fully examined in the Department and (b) that the Minister for Education—I accept he acted in good faith when he gave the reply handed to him by another Department—did not answer my question. I take it therefore that there is no policy for the establishment of oil refineries in any part of the country.

Having regard to the agitation and demonstrations which have preceded the establishment or the rejection of applications for oil refineries in this country, I thought the Government would have given some consideration to the preparation of a policy on this matter. This matter is vitally important from the pollution aspect and for the sake of industrial policy.

I believe that the question of oil refineries will loom larger in our daily lives, whether we look at it as an expansion of our industrial policy or not. The Government should announce their policy in this regard so that future developers will realise the position before seeking planning permission. The application for planning permission to the Dublin Corporation has cost the city a lot of money It was first mooted two years ago and since then high ranking officials of the corporation have spent many hours considering the application. Had the promoters tackled this matter in the right way they would have received an answer much earlier and saved all the expense and time. Had they consulted the requirements for the reclamation of land they would have seen that the corporation had no power to give permission for this reclamation.

This, in my view, is a matter for the Minister for Transport and Power. The reply given to me today indicates a confusion in Government ranks between two Ministers, or two Departments, who do not appear to be able to spell out what the requirements are for the establishment of an oil refinery. It will be said, because I am on this side of the House, that the last Government did nothing about this matter. The last Government, under the Minister for Local Government, set up a working group to examine the question of water pollution and other kindred matters. This working group brought in a report which was to be the basis for a national policy on oil refineries. The Minister, in his reply, made no mention of this. His reply indicates that an application for planning permission for the establishment of an oil refinery is being treated just like an application for the erection of a sweet factory, a toy factory or a footwear factory.

At present at least three applications have been made for the establishment of oil refineries, in Dublin, in Bantry and in Donegal, but, as yet, the Government have not announced their policy in this regard. The people of the country fear what might happen if oil refineries are established. They fear pollution and other threats to the environment. For this reason I believe the Government should announce its policy for the protection of the environment and the education of the people and promoters who are considering the establishment of such refineries. This policy should spell out clearly what is to be allowed. We do not want to have a repetition of the agitation and demonstrations which followed the application for planning permission for the proposed Dublin refinery.

It would save all the trouble at present being experienced in regard to the Dublin application if a national policy was outlined. This policy, which could be described as a national fuel policy, would indicate to promoters if this country is to refine oil or to allow any refineries to be established. It is unfair to the people who propose establishing these refineries that such a policy has not been made public.

The Government should spell out their policy on this matter. In his reply today the Minister told me that grants or other assistance will be provided by the IDA. All public representatives know about planning applications and the work of the IDA and, consequently, this was just padding on the part of the Minister. He did not give me any answer to my question. In any future applications for oil refineries the people concerned will have to go through the entire process of application and agitation.

The former Minister for Local Government set up a working group to examine the problem of pollution and related matters. I would ask the Minister to accept the work done previously and I suggest there is a basis for drafting a national policy on oil refineries. It is no use suggesting this is the same as any other product. An ordinary undertaking would apply to the local authority for planning permission and, if granted, that would be the end of the matter. If an application were rejected and were appealed by the promoter it would be sent to the Minister for Local Government for decision. I appreciate the Government are only three months in office and that they could not have done everything on every issue. However, they were aware of this problem and they knew a working party had considered some aspects of the matter. They had a basis on which to draft a policy but they do not appear to have done so.

Like the Minister, I have some experience of local government and I know the planning regulations. I realise oil refineries affect many parts of the country and that when an application is lodged there will be opposition from some sections of the community. The Government may decide that in the national interest we need oil refineries. I realise that the people responsible for the Dublin Bay project did not propose it merely because we have only one refinery at Whitegate. Their motive was profit and there is nothing wrong in that if profit is made in an honest fashion. However, there is no guidance given to people who do not want oil refineries or to the investors who want to establish them.

We are in the oil age and this problem will crop up again. The Government should state in an unequivocal manner their intentions in this regard. If the Dublin project is appealed by the sponsors it may take a long time before the Minister for Transport and Power and the Minister for Industry and Commerce make a decision. In the meantime the citizens who are genuinely concerned about the possible effects of the refinery must continue to agitate until a decision is made. I am not trying to make capital out of this but I put it to the Minister that he owes it to the people to state the Government's policy. If the Government want to attract capital, potential investors must know the intentions of the Government with regard to the establishment of oil refineries.

It would save time and the taxpayers' money if the Government made a definite statement. I realise the Minister cannot set out this policy tonight but I would ask him to give us some idea of the Government's intentions. I am not going to discuss the merits of oil refineries, whether they pollute the atmosphere or whether they provide employment. That is not the point at issue here. I realise all these points must be taken into consideration but the Government are the final authority and the onus is on them to come forward with a policy.

By a strange coincidence, today the Minister for Local Government announced a plan for clearing oil spillage and he told us the State and the local authorities will finance this work. We have a policy on this matter, but it is the wrong end of the project. It is essential to have a policy on the establishment of plants that will produce and refine oil which, in the event of a spillage, may cause damage. We know that when there is oil spillage the taxpayer will have to pay for clearing it up. The Minister for Local Government is to be complimented on his action today but the more serious aspect—the establishment of oil refineries—should be considered also.

In my question today I asked if the Government had a policy on the establishment or the non-establishment of oil refineries. If they have not such a policy, is one being prepared and when will we be told about the policy? I would ask the Minister for a definite answer to the question.

I acknowledge the interest of the Deputy in this question of oil refineries, coming as he does from Dublin South East—where his constituency colleague, Deputy Fergus O'Brien, in recent days has been receiving favourable publicity because of his interest in this matter.

First, I should like to point out that the fact that I took the questions for the Minister for Industry and Commerce because of his absence in America did not affect the nature of the reply given to the Deputy. The Deputy must accept that, because that is the situation. I should like to thank him for his acknowledgement of the fact that we are only three months in office and, therefore, we cannot get around to deciding policies in all areas.

I should like first of all to make it clear that there has not been any change in policy in this matter since the change of Government. The present policy is, therefore, one that the present Minister inherited and which, no doubt, he will review in due course. The Minister for Industry and Commerce is not necessarily bound to take cognisance——

I addressed the question to the Minister for Transport and Power.

The Deputy was allowed to make his speech without interruption.

I did not address the question to the Minister for Industry and Commerce.

Mr. R. Burke

As I have said, there has not been any change in policy in this matter since the change of Government. The present policy is, therefore, one that the present Minister inherited and which, no doubt, he will review in due course as he comes to review the other matters coming within his jurisdiction.

There is no definite policy to limit oil refineries to any particular geographic area. The permission for the siting in any part of the country of industrial projects, including oil refineries, is a matter for the planning authority concerned or, in the event of an appeal, for the Minister for Local Government.

The Industrial Development Authority provide grants only where a project has complied with the requirements specified by the planning authority or by the Minister as appropriate.

In general it is official policy to support the building of oil refineries only if they provide significant permanent employment or offer the possibility of substantial related industrial development. Even if these criteria are satisfied the Government would not facilitate the setting up of a refinery that would cause serious pollution or interference with local amenities. Obviously in each case the likely advantages—for example the creation of new jobs—would have to be balanced against the likely disadvantages in the shape of pollution or interference with local amenities or tourist attractions.

In general it may be taken that the Minister would not favour the indiscriminate setting up of oil refineries in the country and that he is very concerned to ensure that the need to preserve the environment is not overlooked when new industries are being established.

It is the policy of IDA to discourage industries which are likely to cause pollution of the environment by effluent discharges or air emissions and to insist that all new industries and expanding industries comply with the conditions laid down by the controlling authorities, namely the Department of Agriculture and Fisheries and the appropriate planning authorities in relation to the discharge of effluents. There have been instances where projects have not been approved because it was clear on the information available that these conditions could not be complied with.

The IDA have an established procedure in this matter :

Industries which reach a serious level of negotiation are required to provide to the IDA full details of any industrial effluent discharges or emissions from their proposed plants.

These details are sent to the Institute for Industrial Research and Standards and to An Foras Forbartha in the case of effluent discharges.

The IIRS return a recommendation to the IDA, setting out measures necessary to keep any effluent or emission at an acceptable level.

The IDA forward the recommendations of the IIRS to the controlling bodies I have referred to.

Thereafter, the Department of Agriculture and Fisheries take any necessary action in the light of any comments on the IIRS recommendations and the local authority will normally include the recommendations as conditions in the granting of planning permission for the proposed new operation. If the industrial promoter does not comply with these conditions, the IDA will withhold any grants which have been approved for the new industry. All grant agreements are made on condition that the provisions attaching to planning permissions are complied with and that any licences necessary under the Fisheries Acts are obtained.

With regard to the siting of industries in areas of scenic beauty, the IDA are guided to a large extent by the planning authorities. In a location where the siting of an industry might cause controversy, the IDA also consult Bord Fáilte.

The Government are concerned at all times to provide the maximum employment opportunities and have to examine seriously any worthwhile proposal for the setting up of an industry. In the real sense of the words, we could be said to have no oil refinery at the present time providing the raw materials for downstream industries. Of course, we have Whitegate but this is a refinery for crude oil to provide the country with a large measure of its petrol and fuel oil requirements. I am aware, however, that there is great potential for further industries and employment arising from products other than the fuel oils I have already mentioned.

The places where oil refineries can be set up in this country are limited because of the need for a deep-sea port capable of accommodating large tankers and, indeed, for the convenient export of the product.

I hope the points I have made have gone some of the way to giving the Deputy an indication of the lines on which the Government are thinking. I will convey his remarks to the Minister.

The Dáil adjourned at 11 p.m. until 3 p.m. on Wednesday, 13th June, 1973.

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