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Dáil Éireann debate -
Thursday, 18 May 1989

Vol. 390 No. 3

Ceisteanna—Questions. Oral Answers. - EC Assistance for Whitegate.

2.

asked the Minister for Energy whether he has had discussions with the EC regarding Structural Fund backing for the upgrading of Whitegate Oil Refinery, County Cork; and if he will make a statement on the matter.

It would not be appropriate to make a definitive application for EC assistance at this stage when no final decision has been made on the precise investment package which will be put in place at the refinery. The task force on Whitegate upgrade, which will be looking at all investment options, will examine the possibility of accessing EC and other funding for those options and will make appropriate recommendations to the Government on the matter.

Would the Minister clarify his reply? In many other areas, for example, the provision of inter-connectors in the gas sector, applications have been made for EC funding, even though no precise decisions have been made. Indeed, the Minister has deferred the making of precise decisions in this area for some time. Why did he not include his tentative proposals in the National Development Plan, which was submitted to the EC? Secondly, can he tell us if he has considered the EC's established policy of reducing refining capacity in the Community? This has been established policy for some years. Will this have any bearing on his proposals?

I would refer the Deputy to the Taoiseach's statement on the launch of the plan and can assure him that there will be a degree of flexibility in the management of that plan and in the negotiations with Brussels. It is also fair to say that the plan is fluid enough to allow the making of follow up proposals in respect of a project of this kind. Finally, while no application has been made to Brussels, there will be ongoing discussions with the Commission on all these matters. In my recent discussions with the relevant Commissioner I detected no reluctance on his part or on the part of his advisers to the Government's plans for the development of Whitegate. I can assure the Deputy that no matter what policy is developed within the EC, it is acknowledged that we have only one refinery to meet our requirements.

Can the Minister tell us if it is the case that the only funds which have been earmarked for spending on the upgrading of the refinery and the Whiddy storage terminal are those funds, £26 million, which the State obtained from the sale of its shareholding in Tara Mines? Secondly, given that the INPC are now being forced to endure losses of £2 million a month, can the Minister tell us if those funds are being used to cover such losses or are they to be reserved to ensure that they will be available for the purpose stated previously in this House, that is, in the upgrading of these facilities?

Let me deal with the second part of the Deputy's question first. I had hoped that following the deliberations over the weekend the Deputy would not ask questions which have been answered time and again.

We have not got the answers.

Let me assure the House that the £26 million allocated by the Government will be spent on the upgrading and modernising of the Whitegate refinery. I want to lay to rest——

Are they being reserved?

I want to lay to rest the suspicion or the understanding that these funds will be diverted. In relation to the current losses of the INPC, I have indicated that these are only temporary and that over a period the INPC will return to profitability. Their return to profitability will not result from any injection of the nature the Deputy has inferred.

Can the Minister tell us whether his Department or the Department of Finance considered the proposal to upgrade Whitegate in the preparation of the national plan and, if so, who made the decision not to include it in the plan submitted?

The deliberations on what proposals should emerge in the National Development Plan went on for some considerable time. A variety of different projects were considered. In the final analysis the Government decided on what the priority expenditure areas would be. Clearly, if we all live to see it, a number of changes will be made in the light of our experiences and the plan is flexible and fluid enough to take account of this.

What is——

I did want to deal with some other questions, Deputy Bruton.

A very important question, a Cheann Comhairle.

That may be so but all questions are important so far as the Chair is concerned. Let us have a very brief question. I thought I had given adequate time to this question.

Can the Minister tell us what caused him to change his decision at the end of March and to decide that this project was not to be given priority?

That question has already been asked.

He did not answer it.

The Deputy is engaging in repetition.

May I ask a brief question?

Next question, Question No. 3.

I only wish to ask a very brief question.

The Chair must be obeyed at some stage.

I only sought to ask one question. I have not asked any supplementary.

Question No. 3.

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