I thank the Minister for taking this matter. There has been news in recent weeks of drilling activity commencing again off the west coast — three oil companies have moved into the area with their operations — and such news is welcome. There is however growing concern that Ireland will not benefit significantly from this activity. My primary concern is that the maximum benefit should accrue to the economy, particularly in terms of employment.
Since the late 1960s there has been a substantial input from Irish based oil rig workers on the oil rigs drilling in Irish waters. Many of these workers had worked abroad and returned home with skills vital to developing the native Irish oil industry. The initial quantities of oil did not fully materialise, however, and natural gas off the south coast was the only natural hydrocarbon resource to be fully exploited, providing a limited number of well paid sustainable jobs. Those jobs and conditions were achieved with Marathon. While drilling was at its peak during the 1970s and 1980s many new people were introduced to the industry in Ireland, with the impetus coming from the then ITGWU. The standard was such that between 54 and 78 jobs on each rig in Irish waters were held by workers from Ireland. Employment procedures and pay rates were established at the oil rig servicing ports.
SIPTU has expressed extreme concern that Irish workers will not get fair treatment in terms of job opportunities in the latest oil operations off the west coast. They say there are 900 experienced Irish based oil rig workers and they fear the Minister will allow the international oil companies coming into Irish waters to by-pass them. They have described the advertisements which have appeared in Irish newspapers seeking oil workers as "window dressing" to get the Minister for Transport, Energy and Communications off the hook. They accuse the Minister of being "hoodwinked" by the oil companies and of allowing them to depart from every established practice for pay, conditions and employment in the oil industry here.
The Department of Transport, Energy and Communications is in a very strong position in this matter in that it awards the licences and it requires the oil rig emergency response vessel to be able to reach the site of an oil spillage in half the time it takes oil to reach land. Clearly vessels cannot be based in Scotland, as has been suggested by the oil companies, if there is drilling off the west coast of Ireland. The Minister is in a position to ensure maximum benefit for the economy.
Ireland operates a generous regime for search and discovery of oil and gas. Of 110 countries surveyed by an international group, Ireland offered the lowest corporation tax and royalty rates in the world, with all drilling, labour, research, production, goods and construction costs deductible against tax. While oil companies need to be attracted to drill in Irish waters with competitive tax benefits, some commitment to the Irish economy in terms of jobs, services and related spin-offs needs to be ensured. I call on the Minister to attend more carefully to this duty and to show some speed in the matter. I also call on him to maintain better links with advisers on the oil industry who will be able to guide him to the best course in this area.