Vol. 524 No. 2
102 Mr. Howlin asked the Minister for the Marine and Natural Resources the progress made in his discussions with unions and management to ensure the maximum possible employment of Irish workers in the development of the Corrib gas field; and if he will make a statement on the matter. [22025/00]
As I have previously stated in the House, my Department set up and is facilitating discussions between representatives of the Irish Offshore Operators Association, the Irish Congress of Trade Unions, Enterprise Ireland and the Irish Offshore Suppliers Association on the utilisation of Irish resources and services in the offshore petroleum industry. These discussions are ongoing.
Exploration and production companies employ Irish workers in offshore exploration and development, particularly in the Kinsale gas field. I have continually impressed on the Irish Offshore Operators Association and the individual operators that Irish workers and suppliers of goods and services, including service ports, must be given opportunities to participate fully in such activities, and I will continue to do so.
The Government's policy is to ensure the economy benefits to the maximum extent possible from any current and future offshore exploration activities, within the constraints of EU legislation. Crucial to that is the need to ensure all potential contractors or suppliers of service are made aware of present and future requirements of operators and main contractors.
I have asked Enterprise Ireland to intensify its business awareness efforts. In that context my Department organised a contract awareness seminar for the offshore sector. This was held in Westport on 14 April last. The seminar, which was a success, brought together the main parties involved in the offshore and enabled Irish companies in the goods and services sector to hear at first hand of the opportunities available in the offshore sector. On 14 September last Enterprise Ireland organised a Corrib gas seminar in which the probable contractual requirements and their structure was addressed by Enterprise Energy Ireland Limited. In addition, it was agreed that Enterprise Ireland would work directly with the Irish Offshore Operators Association and specific operators to ensure there is early notification of future offshore work to potential Irish participants. I am glad to say the Irish Offshore Operators Association is committed to fully supporting these opportunities.
I am confident that as a result Irish companies will realise they have the skills to participate in the exploration industry through the supply of goods and services. Enterprise Energy Ireland Limited gave a commitment to increase servicing activity from Ireland this year and a number of contracts were agreed with Irish companies for the provision of various services. I should also mention that the onshore work likely to be involved in connecting any offshore gas supply to the national grid will be a major employer of Irish goods and services.
What will be the estimated number of employees in the Corrib gas field? How many Irish offshore workers does the Minister expect to work in the Corrib gas field? Did he place any condition on Enterprise Oil to employ Irish workers in the Corrib gas field when he issued the licence?
I do not have the figure for the number of people who will be employed in the Corrib field, but obviously there will be substantial numbers employed over the next two years in the construction phase of the pipeline from the field to the County Mayo shore. It would not be possible to place any condition, in terms of the requirement to use Irish workers, on any company drilling for oil or gas because that would be in breach of EU legislation.
In light of the comment made by a former Statoil director that there is a cosy relationship between the Government and the oil exploration companies, what practical economic benefits will accrue to Ireland as a result of the commercial development of the Corrib gas field by Enterprise Oil?
There is no cosy relationship between the Government and any person in the oil or gas sectors. We are anxious to encourage substantial increased exploration off the west coast. We are quite confident that there is significant potential and consequently there are five to eight wells being drilled next year. There were seven wells drilled off the west coast in the past 25 years compared to 4,000 wells drilled in the North Sea. We have a long way to go.
There is significant potential to provide natural gas to the west coast from the Corrib gas field which will allow the national grid to be serviced by Irish gas as opposed to gas imported through the interconnector. It will certainly bring significant potential to the west coast in terms of a gas supply being made available for the first time and will also save the need for an interconnector for the next couple of years.
Will the Minister give an undertaking that the BMW region will gain significantly from this gas find in the west? In other words, even though it appears the pipeline will benefit only the bigger areas, will the deprived areas of the west, midlands and Border region get their fair share of the gas find?
Before the Minister replies, I will allow a brief supplementary question from Deputy Gilmore.
If the Minister cannot say if Irish workers will be employed in the gas field, I fail to see the great benefits of the gas find to Ireland. If we are building the pipeline—
And Irish homes will not be connected to it.
—where is the great benefit in this arrangement?
I did not say Irish workers would not work on this project.
He cannot say how many; there is no condition.
We have spent a great deal of effort and energy convincing Enterprise Oil that Irish workers should be employed in every aspect of the development, and we will continue to do that.
In respect of Deputy Connaughton's question, it is important that we, as politicians, do not treat the finding of gas off the west coast as a panacea for putting gas into every town. That would be to seriously mislead people. The main benefits of gas to the west coast are that it will enable a cheaper energy supply for very large industries, which were not able to locate in the west to date, and it will also ensure a gas powered electricity generating station to produce cheaper electricity on the west coast. Those two developments will be of major significance to the BMW region.
What about the big towns?
Deputy Connaughton, allow the Minister to reply.
The Deputy's policy would be to put gas into every small town.
No, into big towns.
I would be more realistic and practical about it.
