Dáil Éireann debate -
Thursday, 24 May 1990

Vol. 399 No. 2

Ceisteanna — Questions Oral Answers. - Whitegate Oil Refinery.

Eamon Gilmore

Question:

9 Mr. Gilmore asked the Minister for Energy if his Department have had discussions with a British-based trading company, UNI Oil, regarding the possible purchase by the company of a stake in Whitegate oil refinery; if these talks related also to the storage facilites at Bantry Bay; the outcome of these talks; if he has received the report of the task force on the future use of these facilities; when a final decision will be made on the future of these facilities; and if he will make a statement on the matter.

Roger T. Garland

Question:

69 Mr. Garland asked the Minister for Energy the way in which the reinvestment of the finance raised by the sale of the Government shares in Tara Mines will be used to make Whitegate oil refinery, County Cork, profitable, and if he will make a statement on the matter.

Mr. Molloy

I propose to take Questions Nos. 9 and 69 together. As I have informed the House on numerous occasions in the recent past a task force were established last year by decision of the Government to identify all realistic investment options for the facilities at Whitegate and Whiddy. With the assistance of internationl consultants the task force are currently evaluating the technical, economic and financial aspects of the options which have been identified. This work is nearing completion and I expect to receive the report in the very near future.

There is a Government decision that resources arising out of the State's disposal of shares in Tara Mines will be used for the upgrading of the Whitegate refinery and the application of these funds will be determined subsequent to receipt and consideration by Government of the report of the task force and the conclusion of ongoing and planned discussions with parties on the upgrading of the facility.

While I can confirm that officials of my Department have met with representatives of UNI Oil on one occasion, I must stress that this was just one in a series of such meetings with parties interested in Irish oil facilities. Because of their confidential nature, I am not free to disclose details of these or any other talks held with those who have made queries regarding the facilities.

Tomás Mac Giolla

The Minister said the task force are studying various options that are open to them and that they will report shortly. Could he say how many of the people or companies involved are credible or viable options as far as the task force are concerned?

Mr. Molloy

These are confidential discussions and all I will say is that a number of those involved are very credible.

Mr. Garland

Will the Minister say what connection there is between the sale of shares in Tara Mines and investing money in Whitegate refinery? These are two entirely separate issues. Whether or not it is a good proposition to invest Government money in Whitegate refinery has nothing to do with Tara Mines.

Mr. Molloy

This is a decision that was made by the previous Government and I am quite pleased to leave it stand because it assures me of a certain sum of money for investment in upgrading the Whitegate-Whiddy facilities. I cannot give the reasons behind the decision at the time it was made but I am happy to avail of it in support of any work I am doing in trying to upgrade these installations and bring them back into use.

Mr. R. Bruton

Was it not the case that when the task force were appointed they were told to report within three months? Can the Minister tell us whether it is the task force or his officials who are in discussions with companies? Can he assure us that the task force, which consists of many experts, are involved in the discussions with the companies who are making proposals?

Mr. Molloy

The discussions are between the various interested groups and officials of my Department. As to why the task force are taking so long to report, the issues under consideration are extremely complex, requiring detailed, financial, economic and technical analysis. Issues such as these which involve potentially large State investment cannot and should not be decided hastily. The future shape of our refining industry is involved and I would prefer that the fullest possible study be carried out before putting these issues to Government. As I have already indicated, I expect to have the report shortly.

Mr. R. Bruton

Is the Minister saying the task force are not involved in the key discussions with the companies?

Mr. Molloy

The task force were asked to examine the options in regard to the upgrading of Whitegate oil refinery and have carried out very extensive technical investigation into that matter. The discussions with any interested party are largely based on the kind of information that is coming through from the work of the task force. The Deputy will accept that the people involved in the discussions with interested parties would be members of the task force.

Mr. Garland

I am very surprised at the Minister's reply. It is not good enough——

An Ceann Comhairle

A question please, Deputy Garland.

Mr. Garland

——to say that this decision was made by the previous Government. My information is that the Government have been set up in this matter and that the investment of money in Whitegate will be entirely to facilitate the existing international oil companies——

An Ceann Comhairle

I am still awaiting a question.

Mr. Garland

Would the Minister confirm that that is so?

Mr. Molloy

If the Deputy believes that he is innocent.

Tomás Mac Giolla

Is the Minister hopeful that, as Jack Charlton might say, there will be a result from the task force report?

Mr. Molloy

At this point I am very hopeful.