Vol. 530 No. 3
31 Mr. Higgins (Mayo) asked the Minister for Public Enterprise if having consulted her advisers, she has now established the implications of the possible take over of a company (details supplied) which had agreed to the purchase of the Irish National Petroleum Company Limited; and if she will make a statement on the matter. [3997/01]
As the Deputy will be aware, the announcement of the proposed acquisition of the Tosco Corporation by Phillips Petroleum was very recent, and the full implications are still being considered by my Department. Phillips Petroleum is aware that the Tosco Corporation is at an advanced stage in negotiating for the purchase of the business and assets of the INPC and, in public statements, has indicated that it envisages that the deal will proceed. Meanwhile, talks are continuing between the INPC and the Tosco Corporation with a view to bringing that deal to conclusion. Any agreement reached in the matter will have to be acceptable to me and to the Minister for Finance.
The INPC and my Department have been in direct contact with the Tosco Corporation regarding the Phillips Petroleum announcement, and we are awaiting relevant documentation. Any legal agreement concluded between the INPC and the Tosco Corporation will have to reflect possible future change to the Tosco Corporation – such as its acquisition by Phillips Petroleum – together with other relevant matters, if any, identified in the course of my Department's consideration of the Phillips Petroleum development. Last Thursday, a week ago I had an appointment to meet the unions. It could not be fulfilled. It was the second such appointment. I hope to reschedule it for perhaps next week.
(Mayo): Was the Minister surprised to hear that the Tosco Corporation was to be taken over by Phillips Petroleum? In the protracted negotiations with the Tosco Corporation did the possibility of take over arise and was there any mention of Phillips Petroleum in that regard? Thankfully, the INPC provided the Opposition spokespersons with briefings on this. I understand that three weeks ago the deal was finalised, the Tosco Corporation was the purchaser in a $100 million take over which included a 15 year guarantee and talk of the full employment of existing employees. All the elements of the deal were in place and it was only a matter of rubber stamping it and introducing the relevant legislation to the House. In view of this, will the guarantees provided by the Tosco Corporation be delivered on? We do not have them in writing.
I and my officials were surprised at the latest developments. The INPC and the Department have been in direct contact with the Tosco Corporation regarding the announcement by Phillips Petroleum and we are awaiting relevant documentation. I must meet the unions again because I had undertaken to do so when I met them last autumn. I wish to have their views on the shape of the Tosco Corporation agreement. In view of the latest developments, any conclusions reached would have to be similar to those that had been reached with the Tosco Corporation because of its guarantees on 15 years continued employment and because of other matters which would be beneficial to the company. There is a bit of the road yet to travel and I look forward to meeting union members next week, or whenever I can arrange a meeting.
(Mayo): Has the Minister's Department had direct contact with Phillips? What is the position regarding ESOPs, given that it was one of the elements of the agreement? What is the position on the 90 day guarantee from the point of view of national stocks and reserves? As of now, will Tosco be totally subsumed into the Phillips company? On the environmental issues raised in the early days of the deliberations on Tosco, is there an absolute certainty that the guarantees that Tosco satisfy the Minister, the INPC and the EPA will be upheld in the new arrangement?
Developments may have taken place in the past week of which I am not aware. However, as far as I know, my Department has had no direct contact with Phillips; the contact was with Tosco. In relation to ESOPs and a stake for employees in the company, that was one of the issues for discussion last week and I hope to discuss it when the next appointment takes place. I had three main issues when this development began last August. The first related to environmental concerns which had been in the main resolved between the INPC, the Department and Tosco. The second issue, which related to continuity of employment, was envisaged as one of the main points in the agreement. The third issue related to the meeting with the unions, listening to what they had to say and vice versa. The management of the INPC have very much engaged with the union members. As far as I am aware, the Department did not have discussions with Phillips, but I would enter the caveat that perhaps someone talked to someone on the phone in the past week or so when I was not available. As far as I am aware, its dealings continue to be with Tosco.
(Mayo): Has the Minister information on whether the State must indemnify Tosco or Phillips against environmental problems that might arise in the foreseeable future?
When the issue came to light last August, that was one of the main points I thought would constitute a stumbling block because clearly there would be strong environmental concerns. Before the recent interlude, the environmental concerns had been addressed satisfactorily.
