I remind Members of the one minute time limit for supplementary questions. The one minute limit also applies to replies.
Other Questions. - Offshore Exploration.
An Leas-Cheann Comhairle
Brendan Howlin
Question:120 Mr. Howlin asked the Minister for Communications, Marine and Natural Resources his views on the report on the economic implications of the Seven Heads gas field from a company (details supplied); if he has raised with the company the question of the use of local labour and services in the development of the field; the response he has received; and if he will make a statement on the matter. [6259/03]
I am aware of the report which was commissioned by the operator and major shareholder in the Seven Heads development. However, I do not propose to offer specific views on it other than to welcome it as a contribution to the levels of public knowledge and discussion on this wider issue of the economic impact of offshore exploration, development and production.
A copy of the report was given to me at a recent meeting with a representative of the company. At the meeting I took the opportunity to impress on the company the importance attached by the Government to the overall contribution and benefit that such developments should make to the national, regional and local economy in terms of their use of local goods and services and employment. I stressed that local services and employment must be given the opportunity to compete for the range of opportunities available, from standby vessels, supply vessels, supply contracts and offshore employment.
To date the industry has recognised the need to involve local industry and has supported efforts to achieve this. The Government, however, does not expect the industry to avail of Irish goods, services or employment where these are clearly uncompetitive.
All Members of the House received the report from the economic consultants for Mr. Stover of Ramco on this find. It appears that there will be impressive spin-offs in terms of balance of payments, the gas supply and jobs in the Cork area, and that is welcome. However, the question dealt with future developments, such as further developments at the Seven Heads field or at the Corrib field. Has the Government any intention of reviewing issues such as royalties, State participation and the expected job creation there might be in, for example, north Connacht and Mayo? A few years ago the previous Minister, former Deputy O'Rourke, in what was then the Department of Public Enterprise, set in place the gas 2025 programme with regard to the network the island might have in the future. Is the Minister thinking strategically about these matters given the welcome elements of the report from Ramco?
Both the Minister and I are well aware of the need to encourage the employment of Irish people. I have held a round of productive meetings with Mr. Noel Dowling and SIPTU as well as with representatives of the Seven Heads company. At all times, we have expressed our concern that Irish people should be employed as much as possible. Ramco envisaged that the Seven Heads partners would directly spend at least €40 million here in the 2002-2003 period during the development phase, which will create 110 jobs. In indirect spin-offs, they will spend €10.6 million which will create a further 99 jobs. Therefore, there will be significant job creation involved as well as a spin-off effect for the local economy.
We must also bear in mind that the Kinsale gas operations were in decline. This will extend them by a further ten to 15 years and will copperfasten the existing 120 jobs in Kinsale.
I welcome this development and, for a change, I support what the Minister of State has said. The development is hugely important for the Munster region and for Cork in particular. It secures the Kinsale gas field for another ten to 20 years and, therefore, the jobs of those employed there. The vast majority of the expertise involved in that operation is Irish. Is it not the case that in recent weeks Ramco has opened a new office in Cork and is making significant efforts to involve the local community by employing local people where possible? The only exception to that is where specialist equipment or skills are required that cannot be found in Ireland.
I thank Deputy Coveney for his support. In reply to Deputy Broughan, I intend to meet representatives of Enterprise Energy Ireland tomorrow for further discussions on its operations. The Minister and I are proactive in encouraging companies that are currently operating here, as well as those that intend to operate here in the future, to hire Irish labour as far as possible.
As regards the Minister of State's meeting tomorrow, it is important to be clearly cognisant of the probable wealth that lies off our west and north-west coasts.