Dáil Éireann debate -
Thursday, 26 Apr 1979

Vol. 313 No. 10

Ceisteanna—Questions. Oral Answers. - Oil Supplies.

35.

Mr. Kelly

asked the Minister for Industry, Commerce and Energy (a) if he will make a statement on the proposal attributed to him in recent press reports, that a national oil corporation should be established; (b) if he will give whatever reasons his Department may have for believing that such a corporation would offer advantages in regard either to price or to stability of supply; (c) if it is envisaged that (as reported) this corporation would service only the public sector oil consumers, or if private consumers would also benefit from its operation.

36.

Dr. O'Connell

asked the Minister for Industry, Commerce and Energy, in view of the recent measures he has had to take to ensure adequate oil supplies for the country, if it is his intention to establish a State-owned oil company in Ireland.

37.

Mr. B. Desmond

asked the Minister for Industry, Commerce and Energy when it is intended to introduce the proposed legislation to set up a State-sponsored oil and petrol distribution company and if it is the decision of the Government that this company will also import supplies of crude oil for refining and distribution within the Republic.

Mr. R. Burke

With the permission of the Ceann Comhairle, I propose to take Questions Nos. 35, 36 and 37 together.

I have, for some time, been examining the desirability of establishing a State oil corporation and considering towards what areas of the oil industry such a corporation might, from the point of view of the national interest, be orientated.

My approach to this matter is based on the belief that, given the general outlook for oil supplies worldwide, it is essential that the State should at least take the initial steps in improving its capacity to react to developments. I do not envisage that major initiatives would be taken by a State company in the very early stages—the legislation which I am considering contemplates a graduated approach. I consider that it is necessary to have established an instrument of public policy, with the necessary competence and expertise, to undertake, in the first instance, the study and preliminary work on which future initiatives could be based. In the circumstances, it would be premature to attempt to answer the other specific questions raised by Deputies Kelly and Desmond.

I would hope to introduce the legislation before the end of the year.

Mr. Bruton

Would I be correct in drawing the inference from the Minister's reply that in the initial stages at least all this corporation would be doing would be studying issues and publishing reports?

Mr. R. Burke

No, the Deputy would not be correct in that.

Mr. B. Desmond

Would I be correct in maintaining that the corporation's basic function would seem to revolve around the question of oil stocks within the country, the possibility of having a substantial stock provision and that, apart from that, it appears to be no more than an off-the-top-of-the-head attempt to browbeat the particular companies without much thought behind it? Or does the Minister have a Government memorandum on it at this stage?

Mr. Bruton

Like the industrial consortium and the Employment Action Team.

Mr. R. Burke

There is a Government memorandum on it. The draft scheme provides wide powers, contrary to what the Deputy is suggesting, of an enabling nature for the corporation to engage in all aspects of the petroleum industry. It does not identify a specific programme for the corporation. The Minister may request the corporation to exercise all or any of its functions at a given time on a phased basis. There are certain trading functions initially, mainly purchasing, in which the Minister thinks the corporation might engage as quickly as possible with a view to diversifying the spread of our supply sources in an effort to secure future oil supplies.

Mr. B. Desmond

Does the memorandum contain specific provision to enable the corporation to commence refining of imported petroleum products from the UK outer zone area?

Mr. R. Burke

The intention is that the corporation would involve themselves in all aspects of the petroleum industry and, obviously, all aspects would include refining.

Mr. B. Desmond

Does it include refining and indeed distribution, or is this merely an international purchasing agency on behalf of the State to import into a national stock? Will they have the power to refine and distribute in the State? Otherwise this concept is merely window-dressing.

Mr. R. Burke

The Deputy might like to think it is window-dressing and might like to put that concept on it.

Mr. B. Desmond

No, I am all in favour of it.

Mr. R. Burke

I have already said the intention is that they can involve themselves in all aspects of the petroleum industry. The Deputy will be well aware that refining is a major element in the petroleum industry.

An Ceann Comhairle

The remaining questions will appear on the Order Paper for the next sitting day.

Mr. Blaney

Might I raise on the adjournment the matter of the non-delivery, for four weeks yesterday, by one particular petroleum company of any type of supplies to their customers throughout Donegal?

An Ceann Comhairle

I will communicate with Deputy Blaney on the third matter he proposes to raise.