asked the Minister for Energy the present position regarding the reopening of the Whiddy Oil Terminal, County Cork; and if he will make a statement on the matter.
36.
Ceisteanna—Questions. Oral Answers. - Whiddy/Whitegate Oil Facilities.
9.
asked the Minister for Energy the progress which has been made in implementing the commitment contained in The Programme for Government to upgrade Whitegate Oil Refinery, County Cork; and if he will make a statement on the matter.
55.
asked the Minister for Energy the progress which has been made on the Government proposal to upgrade the Whitegate/Whiddy oil facilities in County Cork; and if he will make a statement on the matter.
I propose to take Questions Nos. 9, 36 and 55 together.
A task force was established in May 1989 to identify all realistic investment options for the facilities at Whitegate and Whiddy, and my predecessor announced the earmarking of funds for that purpose. The task force, assisted by international consultants, is currently evaluating the technical, economic and financial aspects of the investment options identified. Work is well progressed and I expect to receive the recommendations of the task force before the end of the year.
In addition, I am continuing to seek an oil producer or an international oil company interested in possible involvement in the proposed upgrading of the Whitegate Refinery.
Turning to the possible reopening of the Whiddy oil terminal, Cork County Council has granted planning permission to INPC for the installation of two single point mooring buoys in Bantry Bay. The planning permission is currently, I understand, the subject of an appeal to an Bord Pleanála. I am likewise actively seeking means of reactivating this terminal whether as an oil trading entrepot or as an adjunct to Whitegate.
Mr. J. O'Keeffe rose.
I should like to call firstly Deputy Richard Bruton who has a priority question tabled on this subject, if he wishes to offer.
Yes, I do. Firstly, may I ask the Minister if he is willing to change the stand of his Department towards the participation of this House in this particular development? Is the Minister aware that his Department refused to allow the affairs of Whitegate to be discussed before an all-party committee? Will the Minister lift that ban so that the Dáil may participate more fully in this development?
May I also ask him to give an indication as to the number of potential partners with whom contact has been made other than the Nigerians, about whose approach so much publicity was given?
I will examine the first point the Deputy made about the affairs of the company being discussed at an Oireachtas Committee. With regard to the second point, I am not free to give the names——
The number.
——of the companies with whom we are in discussion at present. There is a total of three, but there are two real prospects.
In order to bring to an end the speculation which one sees in the press from time to time about the so-called Nigerian deal, I should state that the proposal which was brought forward by a consortium which involves Nigerian interests has been rejected and is not being considered in my Department any more.
In relation to the proposals which the Minister is actively pursuing, may I take it that they cover both Whiddy and Whitegate, or are they concentrated only on Whitegate?
My desire is that whatever arrangement we can enter into would involve both terminals. The Deputy knows there are difficulties in relation to Whiddy——
Indeed.
——because of planning considerations and other matters which have arisen. Of course, if the planning permission does not come through in the end, then it would be very difficult to attract any commercial interest in there. I should like to say, in relation to my comments about Nigerian involvement, that we would not be opposed to having Nigerian oil involvement in any arrangement we enter into.
I fully accept that and I am delighted with the news.
The particular proposal that was brought here has been rejected.
Will the Minister give an approximate time frame for these negotiations? Are we talking about weeks, months or years? I am keen to get an approximate date from the Minister.
Is the Deputy asking when I expect to see bulldozers on the site?
That is my main interest.
In the absence of a definite proposal, and not wishing to pre-empt the findings of the task force set up by Government decision, it is not possible to offer a precise timescale for the commencement of the upgrade at Whitegate and-or at Whiddy. Major developments of facilities such as these have by their nature long lead times and, accordingly, I would not expect to see work commence on the Whitegate upgrade until the latter part of next year at the earliest. Of course, that is provided that the discussions which are taking place come to a fruitful conclusion. It is dangerous to limit oneself to a timescale but the House is entitled to know, and I am prepared to share this information, that I hope that the discussions we have undertaken with one company in particular will lead to a successful conclusion. I hope those discussions will come to fruition before the end of the year or early next year, then we would be in a position to make a decision.
The Minister, in the course of his reply, indicated that three parties were interested in doing deals in relation to Whitegate. Is it the Government's intention to maintain for the people of the State the controlling interest in Whitegate for strategic reasons? Is that a primary concern of the Government in any negotiations? Are active discussions taking place with the three interested parties with specific reference to the statement by the Taoiseach, following his meeting with President Gorbachev, that they were interested in the Whitegate refinery? Is that still an active interest? Are those negotiations continuing?
They were interested in the dockyard.
The Deputy should not get these matters mixed up. The Taoiseach was referring to the processing of Russian heavy fuel oil at Whitegate. A trial has taken place but the Russians at no stage showed an interest of coming in to make a deal with the Irish Government in relation to the upgrading of the Whitegate facility.
I should like to thank the Minister for that clarification.
I mentioned that there are three companies with whom discussions have taken place at different levels. Those discussions are continuing but I must emphasise that I only have hopes for one of the proposals coming to fruition. I do not wish at this stage to raise hopes that if one falls we will have two others lined up. One of the proposals would meet a lot of our requirements. In reply to Deputy De Rossa I should like to state that it has already been made clear by way of a Government decision in the published Grey Book which sets out the Government's offer in regard to this that we are open to consider any proposal.
May I take it that neither the Minister nor the Government have it as a priority to retain a controlling interest in Whitegate?
I have made it clear that we are prepared to consider any proposal.
The Government are not intending to retain a controlling interest?
I have made it clear that in considering any proposal that could involve a 100 per cent sale of it.
Is the Minister aware of the considerable disquiet being expressed by the residents of Whiddy Island and, indeed, on the foreshore of Bantry Bay, about this project? Does the Minister intend to consult those people?
I am fully aware of the concern that has been expressed by the people in the area. I arranged for high level officials of my Department to attend a meeting at which full and frank discussions took place with interests in the area. The Deputy can be assured that the views of the local people in this matter will be taken into consideration when proposals are put before me for development of the area. The matter is the subject of a planning appeal and that is where it lies. It is open to those who have views on the matter to make them known and have them considered prior to a decision being made by An Bord Pleanála.
Will the Minister give an indication of whether the leading company with whom he is discussing development would bring an oil source with it as part of the upgrading because that is thought to be a very important element? Will the Minister say whether his announcement that he would be considering selling the whole lot represents a change in Government policy bearing in mind that not so long ago it was indicated in the House that £30 million to £35 million would be invested by the Government in it? Does the Minister's statement represent something of a shift from the policy outlined in the last Dáil?
I said that the policy on the matter was contained in the Grey Book which was published by the Department some months back following a Government decision. No decision has been made one way or the other as to what will be decided finally. The invitation exists for proposals to be brought forward. We are prepared to look at all proposals but that does not mean to say that a decision would have to be made to dispose of it. I might finally decide not to. No final decision has been made but in the invitation to interested parties to come forward with proposals the matter was left as open as possible and I think that was wise.