Dáil Éireann debate -
Thursday, 28 Jan 1988

Vol. 377 No. 2

Ceisteann—Questions. Oral Answers. - Whitegate/Whiddy Usage.

10.

Proinsias De Rossa

asked the Minister for Energy if he will outline the latest position regarding the proposed use by the Nigerian State oil company of Whitegate oil refinery and Whiddy storage depot in County Cork; if the proposed deal involves handing over ownership of Whitegate and Whiddy to the Nigerian State oil company; if any approach has been made by the Government or State oil company of Ecuador with an alternative offer to the Nigerian plan; if this proposal is under consideration in his Department; and if he will make a statement on the matter.

11.

Mr. P. O'Malley

asked the Minister for Energy if he will give details of any proposals he is considering regarding the upgrading of facilities or Whiddy oil terminal and Whitegate oil refinery, County Cork; and if he will make a statement on the matter.

22.

Mr. D. O'Malley

asked the Minister for Energy if he will make a statement regarding the reported proposals for the utilisation of the Whitegate oil refinery and the Whiddy oil terminal in County Cork by a foreign State oil company.

24.

Mr. Taylor

asked the Minister for Energy if he will outline whether there are any aspects of the proposed agreement to develop Whiddy and Whitegate in County Cork that will require his consent; the extent of his consideration of the matter; and if he will make a statement on the matter.

27.

Mr. Spring

asked the Minister for Energy if he will make a statement, outlining the details of any agreement in respect of the future development of Whitegate and Whiddy Island, County Cork; and if he will in the course of this statement make the following information public (a) the principal participants in any such agreement (b) the financing involved (c) the degree of risk involved and (d) the criteria being employed by him to ensure that all concerns in relation to security of supply, strategic considerations, health, safety and environmental issues are fully met; and if he will make a statement on the matter.

35.

Mr. R. Bruton

asked the Minister for Energy the meetings which he or his Department have had with officials of the Nigerian Government; and if he will outline the provisions he is seeking to protect Irish interests in the event of (1) an Irish oil discovery (2) the financial collapse of the project and (3) a sudden change in the world oil market.

Mr. R. Burke

I propose to take Questions Nos. 10, 11, 22, 24, 27 and 35 together.

I can confirm that negotiations are taking place with a group representing Nigerian interests about a possible package concerning the future use of the Whitegate refinery and the Whiddy terminal. In accordance with established practice it would not be appropriate to make any further statement at present. If and when the business is satisfactorily concluded I will make a detailed statement.

Tomás Mac Giolla

I accept that details of negotiations cannot be disclosed but the purpose of the question was to ask the Minister if all options are being considered in regard to Whiddy and Whitegate. Have other options been put to the Government and, if so, have they been considered?

Mr. R. Burke

At the moment, negotiations are proceeding with the group representing Nigerian interests and all options in relation to the maximum usage of the facility in Whiddy are being considered. Whitegate is also being looked at and there was an indication of interest from another group representing Acua-dorian interests. I have not entered into negotiations with them as it would be improper to have two sets of negotiations taking place at the same time. If the negotiations with Nigerian interests prove to be successful that will be the end of it but if the Government take the view that the terms are unacceptable then I will enter into negotiations with the Ecuadorians.

Mr. Carey

Is the Minister still optimistic?

An Ceann Comhairle

I propose to call the other Deputies whose names are appended to the question.

Tomás Mac Giolla

Surely if there is more than one option open to the Minister he should be pursuing both to see which is better? Where there are offers, the Government should be pursuing the best one. I understand that two Governments are interested and the Minister should consider both to see which is in the national interest.

Mr. R. Burke

It is not a question of offers, it is a question of interest expressed by the other group. We are negotiating with the Nigerian group and it would be improper to go into too much detail in that regard as it would not be in the national interest. The Government will make a judgment in relation to the offer from the Nigerian group and, if we decide not to proceed with it, we will look at the other proposal.

Mr. Spring

Will the Minister clarify if negotiations which have been taking place with the Nigerians or the Ecua-dorians have been conducted at all times by the Department of Energy and, if not, whether the Department have been involved? If not, what other Department have been involved? Could the Minister clarify when his own Department became involved in these discussions? Will he also clarify whether these discussions are taking place on a State to State basis and not between the Irish State and private companies?

Mr. R. Burke

All negotiations in relation to this matter have taken place with the Department of Energy, as is appropriate. Contacts were made by my colleague in the Department of Industry and Commerce but all negotiations have taken place under the aegis of the Department of Energy. In regard to the group with whom we are holding discussions, we have written confirmation that they represent the Nigerian Government.

Mr. P. O'Malley

In the negotiations taking place, is the whole question of security of supply being taken into account because this is something that worries me? Will the Minister comment on the fact that in the past the Nigerian Government have been known not to honour commitments into which they entered? Does that concern him and, if so, will he comment on it? To my knowledge, there are many refineries for sale in western Europe and, presumably, the Nigerian interest is to gain easier access to the markets in Europe. From their point of view, would it not be appropriate to go for one of those refineries? What carrot are we holding out to attract them here? I am at a loss to understand why they would choose Whitegate and Whiddy as distinct from facilities available to them in Europe?

Mr. R. Burke

The Deputy will have to ask the other negotiating team why they want to do business in Ireland. It is a commercial decision for them and it would be inappropriate for me to comment on it. In relation to security of supply, of course all national interest questions are being taken into account in relation to these negotiations and the Deputy and the House can be assured that when an announcement is made — if the deal is arrived at — questions on security and other matters of vital interest to Ireland will be taken into account.

Mr. R. Bruton

While acknowledging that these negotiations are confidential, could the Minister give us some indication of his thinking as to how an Irish oil discovery might be treated in broad terms if this deal goes ahead? Will he be prepared to lay before the House the full details of this scheme before a final decision has been taken by the Government so that we can have a chance to assess the value on offer?

Mr. R. Burke

The Government will make a decision on this matter and the details will then be given to the House. That is what Governments are appointed to do. In regard to the first part of the Deputy's question, I would not be prepared to speculate on that in the House at present as it is all part of the detailed negotiations.

Mr. Spring

I can understand that negotiations are taking place with one group and that they are of a confidential nature. I know the Government will make the decision but, in relation to security of supply in Whiddy and Whitegate which will be tremendous assets if there is an oil discovery, will the Minister ensure that the Irish Government's interest in both these assets is at least maintained? If whatever deal is arrived at brings some economic prosperity and activity to an area which has not had any in recent years, I wish it well. However, I should like the Minister to give an assurance to the House that Irish interests will at least maintain parity with whatever other interests he secures a deal with. If new companies are formed or if assets are transferred, will the Minister assure the House that the deal will be on a 50-50 basis and that we will maintain parity with whoever the Minister deals with?

Mr. R. Burke

I am not here to speculate on percentages or any other aspects of the proposed deal. The Deputy can be assured that the best interests of the Irish people is my guiding principle in all of these negotiations.

Mr. Carey

He has his heart in it.

Mr. R. Burke

I can assure the Deputy that that will continue to be so.

Tomás Mac Giolla

While not asking the Minister to give us details of the negotiations, I must put it to him that my understanding is that under the terms of the negotiations with the Nigerian Government the Nigerian oil company or Nigerian Government would take control both of Whitegate and Whiddy whereas under the proposal from the Ecuadorian Government both would remain under Irish State control. The Ecuadorian deal may not be anywhere near the Nigerian deal otherwise but in that particular matter I understand that is the position. Can the Minister say if it is his intention to retain both in Irish State control?

Mr. R. Burke

My intention, if at all possible, is to put a package together which will commend itself to this House and which will bring badly needed usage of the Whiddy terminal and some propriety to the Bantry area which sadly misses the activity of the Whiddy terminal, and would try to secure investment which would upgrade Whitegate and other facilities for the Irish people.

Tomás Mac Giolla

Nigeria have nothing.

Mr. R. Burke

That is not true.

Mr. Carey

He is looking for his £8 million back.

Mr. Sheehan

Would the Minister assure the House that no special privileges will be given to any multinational oil tycoon firms in future as had been given before in the use of Bantry Bay? As the Minister is aware, there are other interests involved in Bantry Bay such as the mariculture industry and the harbour board, will all these be taken into consideration before any deal is made with this multinational oil company? We do not want anymore behind closed door agreements. We want it laid here——

An Ceann Comhairle

The Deputy has put some cogent questions. He may not make a speech.

Mr. R. Burke

I am very conscious of the position of the chairman of the harbour authority there and I would not do anything to damage his role. I can assure the Deputy that there will be no behind doors and no hidden sections of any agreement. It will be up front and in this House.

Mr. Carey

The Minister will bring it to the Floor of this House?