I thank the Ceann Comhairle for the opportunity to debate the proposal to sell Whitegate oil refinery.
On 18 March 1982, Deputy Albert Reynolds, the then Minister for Industry and Commerce, said that petroleum products are almost as essential to the economy as food is to the individual. He went on to say that it behoved the Government to guard against the risk that supplies of these products could be interrupted for reasons outside its control. We recently witnessed an oil blockade crisis in Britain and other European countries. Even though the Minister told me that did not pose an interruption to the distribution of the normal refined product here, I am informed by other sources that had the disruption gone on a little longer, we would have experienced shortages. Last winter when there was no blockade, 5,800 tonnes of kerosene were released to the oil companies from the strategic reserves because there was a shortage of heating oil in the Munster area.
The issue of oil refining is of vital national interest. We are currently witnessing a serious situation in the Middle East, which could lead to a shortage of oil on world markets. We must be very careful how we approach this issue.
The State oil refinery at Whitegate is to be sold to Tosco, which has a chequered history in terms of safety concerns and environmental incidents, to which recent newspaper reports alluded. While Tosco is a large company and those were probably isolated incidents, I ask the Minister to be very careful in this regard, as this is a matter of vital national interest. Will Tosco guarantee that it will be able to supply the Irish market with refined product? Is there any provision to prevent it from exporting refined product from Whitegate and leaving us in the lurch, if it gets a better price elsewhere? If there was a shortage of refined product in Europe, we would depend on Whitegate to supply us with refined product. I am informed there is a major problem internationally not with crude oil but with refined product. Refineries in America and Europe are literally working flat out.
We must ensure that the price the consumer is charged for the product does not escalate. I hope this deal will ensure that the price of the product will decrease rather than increase. Can the Minister of State guarantee that the existing jobs at Whitegate and Whiddy will be secure? Can he indicate when this deal will go through? I asked the Taoiseach on the Order of Business recently if legislation is required in this area, to which he replied it is not. Yet the INPC Limited Bill is listed on the Government legislative programme. When will that be introduced, given that it has not yet been published? This deal is about to go through. What is happening in that context?
As an island nation we cannot bring petrol or refined product into the country any other way but by sea. Whitegate supplies more than one third of our oil needs. If this deal goes wrong, we will be in serious trouble economically. Deputy Albert Reynolds recognised that way back in 1982. I ask the Government to be careful and sure of its ground in terms of what it is doing here.
The Tosco Corporation is carrying out a due diligence survey of Whitegate. Has the Government carried out a due diligence survey of Tosco? Tosco will be required to operate the plant for 15 years, which is a relatively short time. What will happen after that period? Will Tosco then be able to sell the plant or close it down? Will it be able to close it down in the meantime and, if so, will the Government be able to take action to prevent it? There are many questions about this proposed sale.
I understand Whiddy Island oil terminal is also for sale, although it is proposed that the Government will lease it back. I am informed the sale price is $100 million. If the State has to come up with moneys to pay the loan, will we be giving it away for almost nothing to a foreign company? What will the State, the consumer and the workers gain for that proposed sale? Last year INPC made a profit. Much credit is due to the workers and management of the INPC for turning that company around and making it the success it is today.
I look forward to hearing the Minister of State's reply. This is a serious issue of vital national interest to consumers and to the workers concerned and their families.
