Vol. 560 No. 1
138 Mr. Sherlock asked the Minister for Communications, Marine and Natural Resources if he will make a statement on the EU Commission's proposals for increased mandatory stockholding levels of oil and a European observation system for oil and gas given the imminence of war in Iraq. [1834/03]
In September 2002 the European Commission submitted to the Transport, Telecommunications and Energy Council a proposal for a directive which aims at replacing the Community's existing legislation on emergency oil stocks so as to achieve a greater degree of alignment with the operation of the internal market in oil products, and to improve the effectiveness of the organisation of security stocks through increased harmonisation and co-ordination of national measures of member states. Among the specific measures proposed are an increase in the minimum level of emergency stocks from 90 to 120 days of consumption; a central role for the Commission in deciding on the release of the member states' stocks in the event of a supply crisis or where prices spike in antici pation of such a crisis; a requirement that all member states should establish a national stockholding agency; liberalisation of the conditions under which stocks may be held in another member state; and the establishment of a system to monitor and study developments likely to effect the supply of oil and gas.
Although consideration of this proposal is at a very early stage, it is already clear that there is widespread opposition among member states. There is particular concern to maintain harmony with the parallel arrangements in the International Energy Agency.
