I move: "That the Bill be now read a Second Time".
The Bill has been in the course of preparation for a number of years and its sole objective is to ensure that adequate safety arrangements exist in respect of installations involved in the exploration and exploitation of hydrocarbons. The work involved is by its very nature hazardous and I would expect that the contents of this Bill will meet with broad support across the House. There may be differences on points of detail but I am satisfied that the overall thrust of the Bill is correct. I have examined the provisions in the Bill in detail and while I will have a few amendments to suggest at Committee Stage I think there should be no further delay in moving this Bill forward.
Two main factors have influenced the evolution of this Bill. One is the necessity for strong and detailed provisions relating to the safety, health and welfare of persons engaged in offshore operations. The other factor is the need for adequate advance planning to deal with the situation which may be created should substantial petroleum finds be made.
Exploration off our coasts began in 1971. Up to the end of 1986, the total number of wells drilled was 95. This year it is expected that at least four wells will be drilled. Last year over 250 Irish personnel were engaged for offshore work. So far this year just over 100 personnel have been recruited. As this Government intends to actively encourage offshore development I am hopeful that there will be increased opportunities for the many experienced Irish offshore workers.
Exploitation is confined at present to natural gas off Kinsale which came on stream in 1978 and is carried out by two production platforms. We would all hope that the exploitation of natural gas will be matched by development of native oil resources off our shores in the not too distant future.
The Bill provides a comprehensive framework within which the efforts of all concerned with the safety, health and welfare of persons employed on offshore operations must henceforth be directed. To set these new provisions in perspective, it is necessary to deal briefly with the legal basis for existing arrangements.
While general responsibility for ensuring the safety, health and welfare of workers employed on offshore installations rests with my Department, none of the safety protection statutes administered by the Department applies to such installations. As the law stands, the rules and procedures for offshore petroleum development and production operations are based on the Petroleum and Other Minerals Development Act, 1960, and on offshore licensing terms administered by the Minister for Energy.
Section 6 of the Petroleum and Other Minerals Development Act prohibits searching for or recovering any petroleum found, save under the licence from the Minister for Energy. The safety of workers employed on an offshore installation is at present controlled by a condition in this licence. This condition requires the licensee to comply with all regulations and directions of my Department for securing the safety, health and welfare of persons employed in or about the licensed area. The current requirements are those set out in the Safety Instructions for Offshore Petroleum Operations issued in February 1983 in place of previous instructions issued in 1975. While this arrangement has worked reasonably well until now, I think the House will agree that it is far from being an ideal one.
The incidence of fatal accidents on offshore installations in the North Sea has been alarmingly high. For instance, over 110 deaths from accidents in or near offshore installations were officially recorded in the first 17 years of drilling for oil in the North Sea. Nearly 650 accidents involving serious injury were recorded in the same period. In the case of operations in Irish waters, however, the only penalty available at present for not observing directions about the safety of workers employed on or about these installatins is withdrawal of the licence. A penalty which would involve ending all exploration or production under a particular licence is obviously not a satisfactory means of guaranteeing the effectiveness of day-to-day safety management on production installations.
There is no place for any complacency about safety concerns in the hazardous environment of an offshore platform. I do not set any great store on bureaucratic means of ensuring that safety standards are met. No system introduced by Government or overseen by my Department's inspectors will ever achieve safety offshore. Put simply, all offshore employers and each and every individual employee must understand that responsibility for an effective safety system lies in their own hands.
I welcome the positive approach which trade union and employer interests in the petroleum industry have shown in promoting a safety conscious working environment. Both sides have recognised the importance of training in the drive towards safer operations. Under a recruitment agreement made in 1985 all employees recruited for offshore work are required to register with the National Manpower Service and to have completed a fire-fighting and survival course. This will ensure that all offshore personnel have basic training for what is a very dangerous job.
I believe that it is important that workers should be involved in decisions about their working environment. Having regard to the nature and intensity of the hazards encountered, I am convinced of the need for a mechanism to enable workers on offshore installations to become involved in decisions on safety and health matters.
I am satisfied that the provisions of the Bill are broadly in keeping with the recommendations of the Barrington Commission. They should serve to press home to offshore employers and to their workers the need for effective safety policies, the importance of safety training and the value of having carefully drafted and well-observed procedures. No amount of attention devoted to recording accidents is going to be of any use after all if the main emphasis is not on avoiding the possibility of accident or damage in the first place.
The Bill is divided into six parts under which are grouped sections dealing with preliminary and general matters, offshore installations, safety regulations and representations, accidents, offences and penalties and the powers and functions of inspectors, with subsidiary provisions.
Part I is concerned with preliminary and general matters and contains a number of standard sections dealing with commencement, definitions, application, and regulations. An enabling section for the provision of regulations will allow specific aspects of offshore operations to be subjected to detailed regulations. While the Bill contains substantive provisions for safety matters, I have decided for practical reasons that the legislation will be backed up by detailed regulations. Section 5 (1) makes consultation with the Minister for Energy obligatory before any regulations are made. I have also included a provision for consultation as necessary with other Ministers.
The main feature of Part 2 of the Bill is the establishment of the position of installation manager. Section 11 requires that every offshore installation shall be under the charge of a competent installation manager appointed by the installation owner. The manager will, under section 13, have responsibility for safety, health and welfare and also for order and discipline. As Minister for Labour, I have taken power to specify by regulation the installation manager's duties in relation to the safety, health and welfare of installation workers. Section 10 places an obligation on the manager to see that the installation is not used unless the rig and its fittings and equipment are suitable.
All equipment must be of sound construction and adequate strength and it must be properly maintained and comply with regulations which will provide for a certification procedure in relation to these requirements. Section 10 also casts a qualified duty on the installation manager to ensure that all working places on or about the installation are safe. There is a duty on different employers operating at the same installation to co-operate in protecting their workers from danger. Section 12 provides that no offshore installation may in future function except under the daily personal supervision of the installation manager, or of a qualified substitute during his absence or incapacity. In section 16 a duty is placed on the installation manager to keep a logbook and a record of all persons on board the installation. Section 14 prohibits the employment on offshore installations of persons under 18 years of age, unless exempted by regulation.
Section 15 places an obligation on employees of the installation to look to the safety of themselves and their co-workers and to co-operate with employers in complying with the Bill or regulations. In section 18 the installation owner is obliged to see that suitable clothing, equipment and facilities are provided for the protection of workers. Other sections in Part 2 oblige him to ensure that a sufficient system is provided for the detection of gas, for the safe storage and identification of dangerous substances and preparations and for dealing with the hazards of naked lights and smoking.
Part 3 of the Bill deals with safety on the installation itself. Section 22 specifies matters which may be the subject of safety regulations. These include the operation of support vessels, aircraft, work processes, pipeline works and matters listed in the Schedule to the Bill, for example, medical and training requirements and emergency procedures. Before regulations are made, notice of intention to make them will, in most instances, have to be published at least 21 days in advance. This procedure will give interested parties an opportunity to make representations about their content.
Other sections of Part 3 deal with safety representation and may be brought into force by regulation. Section 23 allows for selection by the workers of a safety representative and deputy safety representative to represent them at consultations with the installation manager on safety, health and welfare. Section 24 outlines a procedure for the selection by the workers, if they so wish, of a safety committee to assist the owner and the installation manager in securing comliance with all safety provisions and regulations. The committee may appoint a safety delegate and deputy safety delegate. There is provision in section 25 for appointment by the installation manager of a safety representative or safety committee in default of any initiative in that regard by the workers.
Under section 26 the owner of an installation will be required to draw up a statement of policy specifying the manner in which the safety, health and welfare of the employees will be secured. The installation manager must make a copy of the statement available to any safety representatives or safety committee or, if neither exists, to any employee on the installation who requests a copy.
As I stated earlier, these provisions on safety representation reflect my concern to highlight the importance of worker involvement in safety matters. I recognise that ultimately a framework for involvement can only succeed in its purpose if it is suited to its environment. Following the publication of the Barrington Report on Safety at Work, my Department have been working in liaison with the Interim Board for Occupational Safety and Health on the drafting of legislation to give effect to its recommendations. In this context, it may be necessary to review the present provisions in this Bill in due course.
Part 4 of the Bill lays down the procedures to be followed in case of accident, injury or death and in the event of the occurrence of disease on an installation. In sections 27 and 28 I am proposing the establishment of procedures to be followed where death occurs as a result of accidents on or around an installation. Written notice must be given immediately to both myself and the Minister for Energy.
There is also a prohibition on interference with the scene of an accident for a specified period unless an industrial inspector of my Department has visited the installation and agreed to any proposed changes. Section 29 lays down procedures to be followed where a person on an installation is found to be suffering from a prescribed disease. I have taken power to order, where I consider it appropriate, a formal investigation into any accident, disease or other occurrence notified to me under the legislation. In the discharge of my functions under the Bill I will have the benefit of professional advice from an industrial medical adviser, who may be vested with the powers of an industrial inspector.
Parts 5 and 6 which conclude the Bill deal with offences and set out the penalties for breach of provisions of the Bill, and with the powers of the industrial inspectors of my Department. The inspectors are given the right of access to offshore installations and to make examinations, inquiries and tests necessary to ascertain whether the Bill and the regulations are being complied with. They are also empowered to serve notice imposing prohibitions, restrictions or other requirements in cases of immediate or apprehended danger. Provision has been included for an appeal against any such notice.
The Bill will undoubtedly benefit from the detailed scrutiny of this House. I will, of course, be prepared to consider any constructive suggestions to improve the Bill's provisions. I am satisfied, however, that in its general principles it will provide an effective framework to harness the efforts of all concerned with the safety, health and welfare of persons employed on offshore installations. I commend the Bill to the House.