Skip to main content
Normal View

Dáil Éireann debate -
Thursday, 27 May 1993

Vol. 431 No. 5

Ceisteanna—Questions. Oral Answers. - Whitegate Oil Refinery.

Michael Noonan

Question:

3 Mr. Noonan (Limerick East) asked the Minister for Transport, Energy and Communications if the Government has accepted the recommendations of the Moriarty Task Force in respect of the mandatory offtake of petrol from Whitegate; and the steps, if any, he intends taking to give effect to the recommendations.

Pat Rabbitte

Question:

24 Mr. Rabbitte asked the Minister for Transport, Energy and Communications the plans, if any, he has for the development of Whitegate Oil Refinery in the light of the Government decision to end the mandatory takeoff of oil supplies by the major oil companies; and if he will make a statement on the matter.

I propose to take Questions Nos. 3 and 24 together.

The Moriarty task force on the implementation of the Culliton report recommended that unless there is a credible proposal to commercialise the refinery so that the mandatory off-take of petrol products from Whitegate can be ended by 31 December 1996 at the latest, the mandatory regime should be ended immediately. The task force further required that the appropriate decisions in this connection be taken by June 1993. These recommendations have been accepted by the Government. Therefore, no decision has been taken as to when the mandatory off-take of oil products will end.

INPC is at present developing a plan to achieve commercialisation of operations at Whitegate. The plan will be submitted to me for consideration in June and a decision on the future of the refinery will then be made taking account of the need to maintain adequate strategic oil stocks as required under EC law and international agreements.

(Limerick East): Will the Minister give the cost of the mandatory take off at Whitegate at present in terms of extra cost per gallon of petrol? Will he say how many people are employed at the Whitegate refinery?

There is an injection of new matter in this question.

In the interests of accuracy I will communicate that information to the Deputy.

(Limerick East): The Minister indicated that he will receive a report from the INPC next month and that he will then be in a position to decide whether it is necessary to end mandatory take off at Whitegate. Does the Minister envisage any intermediary position between full commerciality of the refinery or its closure due to its failure to be commercial and the ending of the mandate?

On recollection, the Moriarty task force indicated a threeyear period within which to phase in commercialisation. Therefore the decision will be taken to end mandatory take off by the beginning of 1997.

(Limerick East): Will the Minister confirm that his Department is of the view that there are only two choices, the construction of a new oil refinery to replace Whitegate or its closure, and that there is not an intermediary position whereby the regime at Whitegate could be commercial?

That is not correct. The options are to continue to search for third party finance, to go ahead with smallscale upgrading finance by the INPC or closure. Plans in relation to the second option are at present being prepared by the INPC. The option of a new refinery is not being considered.

Top
Share