Dáil Éireann debate -
Tuesday, 4 Mar 2003

Vol. 562 No. 4

Written Answers - Whitegate Oil Refinery.

Brian O'Shea

Question:

125 Mr. O'Shea asked the Minister for Communications, Marine and Natural Resources the total return to the State from the sale of the Whitegate Oil Refinery and the Bantry storage terminal; and if he will make a statement on the matter. [6262/03]

Minister for Communications, Marine and Natural Resources (Mr. D. Ahern)

The transaction to which the Deputy refers was completed on 16 July 2001. It was prompted primarily by a concern to find a sustainable basis on which the refinery and the terminal could operate and develop within the context of a mainstream oil business, so as to secure for Ireland the strategic benefits of these facilities at least cost to taxpayers and consumers.

Nevertheless, a significant element in the transaction was the payment by the purchaser of a headline consideration of $100 million, although it was always recognised that the net cash return to the State would be substantially less than that figure. This is because the terms of the transaction included the retention by the Irish National Petroleum Corporation of a number of responsibilities having financial implications, chiefly the company's existing debt.

As matters stand, the INPC is still attending to a number of ongoing matters arising from its retained responsibilities which have cost implications for the company and which will have to be funded from the proceeds of the sale. Consequently, it is not yet possible to say exactly how much will be eventually available for remission to the Exchequer, although the total is likely to be in excess of €30 million. In March 2002, the INPC paid an interim amount of €20 million to the Minister for Finance and I expect that a further, but not necessarily final, payment will be possible in the current year.