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Dáil Éireann debate -
Thursday, 23 Nov 2000

Vol. 526 No. 5

Other Questions. - Corrib Gas Field.

Jan O'Sullivan

Question:

9 Ms O'Sullivan 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. [26935/00]

As I said in answer to a similar question raised in the House on 17 October, my Department has 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. In a recent address to the Institute of Petroleum, I made it clear that the Government does not expect the industry to avail of Irish goods, services or employment where they are clearly uncompetitive. The Government expects the industry to encourage and facilitate potential Irish suppliers to compete for the services required. This should be done in partnership with State agencies and should be seen as part of the industry's commitment to Ireland, within a long-term commercial and marketing framework. Any company operating in Ireland for the long-term should see that it is in its own best commercial interest to build strong links into the economy and to demonstrate a significant economic and social dividend both at regional and national level.

I have designated Enterprise Ireland as the State agency to act as facilitator between operators and Irish providers. However, the industry should engage even more intensively with Enterprise Ireland and FÁS in ensuring that the potential for Irish personnel, goods, services and technology transfer is fully exploited.

The Government's policy is to ensure that the economy benefits to the maximum extent possible from any current and future offshore explor ation activities, within the constraints of EU legislation. Crucial to that is the need to ensure that all potential contractors or suppliers of service are made aware of present and future requirements of operators and main contractors.

Additional Information.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 industry 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 that there is early notification of future offshore work to potential Irish participants. I am glad 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 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. 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.

Was there any indication from the Westport conference as to whether consideration will be given to hiring and/or training Irish workers? It was indicated in some of the national media that Irish workers did not have the skills required to man some of these rigs.

I have had ongoing discussions with the IOOA and with individual companies concerned, such as Enterprise Energy. I impressed upon them the need for positive discrimination in favour of Irish workers. I have had a positive response from the industry. While there have been some difficulties in the past, I am quite satisfied that, following discussions with SIPTU in the past week and with the industry, we can overcome these difficulties and that Irish workers will be employed on all aspects of the industry.

One of the difficulties for the industry and for Enterprise Energy is that if a rig comes in once a year for two or three months during the summer, like any boat it is fully crewed. It is not easy to bring in some people for a short period who may then wish to depart. A compromise might be to have more Irish workers working on these drilling rigs when they come here, as well as travelling with them when they go away. I am satisfied that any training requirements will be made available through FÁS and Enterprise Ireland which is also working on this matter. I am satisfied that the necessary contacts are now being made.

Will the Minister inform the House if the offshore companies are taking these contacts with Enterprise Ireland and FÁS seriously? It has been represented to me that many offshore companies do what they like and do not take a great deal of notice of what Enterprise Ireland and FÁS do. Will the Minister indicate the volume of contact there has been with Enterprise Ireland?

There has been constant contact between Enterprise Ireland and the industry which is not offshore. Enterprise Energy is based here. There has been much co-operation, but the contrary impression has been created by a small minority, and it is wrong.

They seem to believe it.

I discussed this with representatives of the industry recently and they are very committed to the process of involvement with Enterprise Ireland and with FÁS. They are also interested in employing Irish workers. The proof is there in the amount of services provided out of Killybegs this summer. A significant increase in the servicing that was done out of Scotland the previous summer was done from Killybegs this year. I have made it known in no uncertain terms to the industry that I want the maximum number of Irish people employed in all aspects of the industry. I will continue to reinforce that message with them.

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