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Dáil Éireann debate -
Tuesday, 8 Dec 1998

Vol. 498 No. 1

Priority Questions. - Offshore Exploration.

Michael Finucane

Question:

36 Mr. Finucane asked the Minister for the Marine and Natural Resources whether he has arranged a meeting between his Department and the Irish Offshore Operators Association to urge it to provide for the employment of Irish-based highly skilled oil rig workers; whether a fair share of Irish goods and services will be provided; whether he will give an assurance that this will be followed up with a meeting with SIPTU to ensure that the 1999 offshore oil and gas exploration activity is more successful for Irish labour, goods and services than the 1998 programme; and whether he will ensure a better relationship exists between offshore oil operators and Irish workers. [26755/98]

As I previously indicated to the Deputy, it is Government policy to ensure that the economy benefits to the maximum extent possible from offshore exploration activities within the constraints of EU legislation. I have continually impressed on the Irish Offshore Operators Association and the individual operators that Irish suppliers of goods and services and, indeed, Irish workers must be given opportunities to participate in such activities. In that context, my Department recently wrote to both the Irish Offshore Operators Association and SIPTU urging them to discuss the problem of employment in offshore exploration with the intention of arriving at an acceptable solution.

The IOOA has now requested a meeting with me in advance of any such discussions and I have agreed to meet them. This meeting is likely to be followed by a meeting between SIPTU and the IOOA. I have previously had discussions with SIPTU on this issue and am quite happy to have further such discussions. I should add that Enterprise Ireland, under the aegis of the Department of Enterprise, Trade and Employment, has responsibility for ensuring maximum input of Irish industry in offshore exploration operations. It has been very active in this area for some time and has assisted the operators in identifying Irish companies who can tender for work and assisted companies by identifying opportunities arising in both petroleum exploration and production.

The Minister is aware of my concerns about what happened this year in regard to Enterprise Oil — not only did Foynes port lose the service contract but SIPTU was unable to get the normal membership of rig workers on to the rigs, as it had done in previous years. Enterprise Oil is based in Aberdeen. Is the Minister aware that, not only is Enterprise Oil said to have struck it rich in gas off the coastline, but there are potential inherent dangers for the long-term future of the related services, on the basis of what Enterprise Oil has been allowed to get away with up to now, although I recognise there are restrictions on the Minister? There is also an extreme danger that it will physically set up in Aberdeen.

Will the Minister follow the example of his predecessor, the then Minister of State, Deputy Stagg, who was faced with a similar threat from Enterprise Oil in 1996 when it did not want to operate off the coast of Ireland but had a service base here? He insisted that it employ the rig operators, which it did. I am pleased the Minister is having discussions at this stage with Enterprise Oil because if the situation is not satisfactorily resolved we could face a period of discontent on this issue next year. It is too important an issue to allow it to go in that direction.

I agree with the Deputy on that. I regret it happened this year. The Deputy referred to the previous Minister of State and previous arrangements, but they all predate the EU regulation, which is where the difficulty arises. Nevertheless, as I have said in the House before, there were Irish workers on the rig. I saw them when I went to see what was happening on the rig.

The company was prepared to take on a major contract, valued at £2 million to £3 million with other additional values, from Foynes. However, that was prevented this year, which was very regrettable. The effect of that was to drive the explorers to Ayr, where they received services and spent their money instead. I agree with the Deputy that creates a very dangerous precedent.

There are three companies involved in this and they have said they are anxious to employ Irish people on the rigs and to get services in Ireland. They are prepared to discuss with SIPTU and me the ways in which this can move forward.

The Deputy referred to the long-term prospects. It is a different situation from the long-term point of view. The well this year was a very promising one. If, as the findings indicate, there is a substantial gas find, there will be new negotiations for the arrangements to bring that onshore.

There are many aspects to be considered. It is hoped there will be further appraisal wells next year. I expect there will be two further appraisal wells to delineate the area. I hope these discussions will be helpful in that regard.

Will the Minister confirm if Statoil has a shareholding in the Enterprise Oil grouping? Is the Minister aware that Statoil is owned by the Norwegian Government and that it has tremendous respect for the workers in Norway and is subject to many restrictions? Given that Statoil is part of Enterprise Oil, it would generate a great deal of goodwill if it were to intervene with Enterprise Oil and convince it to use the Irish rig workers and Ireland as a service base.

Statoil is part of the Enterprise Oil group. Norway is outside the European Union, which allows Statoil a great deal of freedom and scope in that regard. However, I hope our discussions will be fruitful. It was always the position of Enterprise Oil that it would employ people on the rigs continuously; in other words, it would move them to other locations. The Irish people working on the rigs were moving with the company from the North Sea.

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