The purpose of the proposed legislation is to provide statutory arrangements for the safety, health and welfare of persons working on offshore installations engaged in the exploration and exploitation of hydrocarbons off our coast.
While general responsibility for ensuring the safety, health and welfare of workers employed on such installations rests with my Department, none of the safety protection statutes administered by the Department applies to those workers. The Safety in Industry Acts, 1955 to 1980, which apply to factories etc. do not apply to offshore installations. As the law stands, the rules and procedures for offshore petroleum development and production operations are based on the Petroleum and Other Minerals Development Act, 1960, and on Offshore Licensing Terms administered by the Minister for Energy.
Section 6 of the Petroleum and Other Minerals Development Act prohibits searching for or recovering any petroleum found, save under licence from the Minister for Energy. The safety of workers employed on an offshore installation is at present controlled by a condition in this licence. This condition requires the licensee to comply with all regulations and directions of my Department for securing the safety, health and welfare of persons employed in or about the licensed area. The current requirements are those set out in the "Safety Instructions for Offshore Petroleum Operations" issued in February 1983, in place of previous instructions issued in 1975. While this system has worked reasonably well until now, it is time it was placed on a statutory footing.
In passing, I might mention that the general question of licensing terms is at present under review by my colleague, the Minister for Energy and Communications. There has been criticism from within the industry of these terms — and, in particular, those affecting marginal oilfields and it is the intention that the new regime should be seen as clearly competing favourably with arrangements elsewhere. An announcement in the matter will be made shortly.
Exploration off our coasts began in 1971 and the total number of wells drilled to date is approaching 100. The work involved is by its very nature hazardous and I would expect that the contents of the Bill aimed at ensuring adequate safety arrangements for the workers concerned will meet with broad support across the House. While this year over 100 Irish personnel have been employed in offshore work I am sure that, with the encouragement of Government, there will be increased opportunities in the future for the many experienced Irish offshore workers.
Exploitation, as distinct from exploratory work, is confined at present to natural gas off Kinsale which came on stream in 1978, and is carried out by two production platforms. We would all hope that the exploitation of natural gas will be matched by development of native oil resources off our shores in the near future.
The incidence of fatal accidents on offshore installations in the North Sea has been alarmingly high.
For instance, over 110 deaths from accidents in or near offshore installations were officially recorded in the first 17 years of drilling for oil in the North Sea. Nearly 650 accidents involving serious injury were recorded in the same period. In the case of operations in Irish waters there have been three fatalities to date. The legal position at present is that if directions about the safety of workers employed on or about these installations are not observed, the only penalty available is the withdrawal of the licence.
A penalty which would involve ending all exploration or production under a particular licence is obviously not a satisfactory means of guaranteeing the effectiveness of day-to-day safety management on production installations. Hence the need for the alternative arrangements proposed in this Bill.
I welcome the positive approach which trade union and employer interests in the petroleum industry have shown in promoting a safety conscious working environment. Both sides have recognised the importance of training in the drive towards safer operations. Under a recruitment agreement made in 1985, all employees recruited for offshore work are required to register with the National Manpower Service and to have completed a fire-fighting and survival course. This ensures that all offshore personnel have basic training for what is a very dangerous job.
There must be no complacency about the concern for safety in the hazardous environment of an offshore platform. Safety will not be assured simply by the making of laws and regulations.
Safety essentially depends on the commitment of owners, employers and workers who must all accept a share of the responsibility for providing and carrying out the operation of safe structures, safe systems and safe procedures. The Bill sets a high standard of safety as an objective and it will be my responsibility as Minister to work for its achievement through monitoring and enforcement.
It is important that workers should be involved in decisions about their working environment. Having regard to the nature and intensity of the hazards encountered, I am convinced of the need for a mechanism to enable workers on offshore installations to become involved in decisions on safety and health matters.
The provisions of the Bill should serve to press home to offshore employers and to their workers the need for effective safety policies, the importance of safety training and the value of having carefully drafted and well observed procedures. No amount of attention devoted to recording accidents is going to be of any use if the main emphasis is not on avoiding the possibility of accident or damage in the first place.
The Bill is divided into six parts under which are grouped sections dealing with preliminary and general matters, offshore installations, safety regulations and representation, accidents, offences and penalties and the powers and functions of inspectors, together with subsidiary provisions. Part I is concerned with preliminary and general matters and contains sections dealing with commencement, definitions, application, exemptions, regulations, informational needs, service of notices and administration expenses.
In relation to the definitions and to the application of the Bill as originally circulated, I felt that it would be preferable to have in section 2 (1) a definition of "offshore installation" that would specifically include any installation providing accommodation offshore for workers. Accordingly, I moved an appropriate amendment which was accepted by the Dáil on Committee Stage. This, in effect made redundant some words qualifying the description "offshore installation" in section 3 (1) dealing with the Bill's application and that section was also amended accordingly.
Section 4 provides that the Minister has power to exempt an installation from the application of the Act or regulations. Before issuing such an exemption — which must be in writing and which must refer to a particular time span — the Minister must be of the opinion that to insist on full compliance would not be reasonable. The guiding norms for determining what is or is not reasonable will be: (i) the amount of work involved; (ii) the number of employees — actual or prospective; (iii) the duration of the work; or (iv) any other special circumstances.
This power of exemption will enable a commonsense flexibility to be exercised. It is important to ensure that operations are not hindered by unnecessary restrictions. The Minister will have the advice of the industrial inspectorate when considering any exemption.
In the Dáil, it was suggested that this section should contain a requirement about having mandatory consultation with trade unions prior to confirming any application for exemption. Another suggestion was put forward about providing statutory exemption in the Bill for installations in particular circumstances.
I have carefully considered both of these suggestions. I would not be in favour of a situation where unnecessary delays could occur while mandatory statutory consultations were running their course. Neither would I support having automatic and blanket exemptions built into the legislation. I have been advised that it would be almost impossible anyway to attempt to cover all likely exemptions by way of legislation. I feel that each case should be considered on its merits. I am in favour of informal consultations taking place on exemption applications and I would expect the interests concerned to put forward their case.
The industrial inspectorate will be charged with the duty of administering this measure to ensure the safety, health and welfare of offshore workers. In advising me about exemption applications, the inspectorate will only recommend exemption where they are satisfied that the safety of the workers concerned is not under threat.
While the Bill itself contains substantive provisions for safety matters, I have decided for practical reasons that the legislation will be backed up by detailed regulations.
Section 5 of the Bill allows specific aspects of offshore operations to be made the subject of such regulations. Section 5 (1) makes consultation with the Minister for Energy obligatory before any regulations are made. I have also included a provision for consultation as necessary with other Ministers.
Section 5 (7) provides that, with some exceptions, the Minister for Labour shall, before making regulations, publish in Iris Oifigiúil and in such other manner as he thinks desirable, notice of my proposal to make regulations and of the place where copies may be obtained. Interested parties then have 21 days in which to make representations about the content of the regulations.
In the Dáil, I was pressed to amend this subsection by the insertion of a requirement that the Minister should consult employer and trade union organisations prior to the drafting of regulations. As I have indicated, the Bill provides for publication of notice of proposals to make regulations and provides for the making of representations. This provision compares with similar provisions in the safety legislation which applies to industrial workers and to mining and quarrying workers. As we are concerned here with safety conditions in operations of a very hazardous nature, I am satisfied that it is essential to put a reasonable time limit on the process of consultation so as to avoid undue delay and to ensure that the necessary regulations are brought into operation as soon as possible. However, I can give an assurance that there will be informal consultation with employer and worker representative bodies on the regulations to be made under this Bill in advance of publication.
Subsection 5 (7) was, however, amended in one respect on Committee Stage in the Dáil. I decided to bring regulations relating to the qualifications of installation managers and their deputies, logbook entries and prescribed diseases in under the list of matters which will be the subject of the consultative process. These are matters on which I think interested parties should have an opportunity to put forward their views and the amended subsection 5 (7) (b) provides accordingly.
Part II of the Bill provides for the establishment of the position of installation manager. Every offshore installation is required under section 11 to be under the charge of a competent installation manager appointed by the installation owner. Under section 13, the manager is vested with responsibility for safety, health and welfare and also for order and discipline. I have taken power as Minister for Labour to specify by regulation the installation manager's duties in relation to the safety, health and welfare of installation workers.
Section 10 places an obligation on the manager to ensure that the installation is not used unless the rig and its fittings and equipment are suitable. All equipment must be of sound construction and adequate strength, must be properly maintained and comply with regulations which will provide for a certification procedure in relation to these requirements. Section 10 also puts a qualified duty on the installation manager to ensure that all working places on or about the installation are safe. There is a duty on different employers operating at the same installation to co-operate in protecting their workers from danger.
Section 12 provides that no offshore installation may in future function except under the daily personal supervision of the installation manager, or of a qualified substitute during his absence or incapacity. Section 16 places a duty on the installation manager to keep a logbook and a record of all persons on board the installation. Section 14 prohibits the employment on offshore installations of persons under 18 years of age, unless exempted by regulation.
Section 15 obliges employees on the installation to look to the safety of themselves and their co-workers, and to co-operate with employers in complying with the Bill or regulations. In section 18 the installation owner is obliged to see that suitable clothing, equipment and facilities are provided for the protection of workers. Sections 19, 20 and 21 oblige him to ensure that effective systems are in operation for dealing with the hazards of naked lights and smoking, for the detection of gas and for the safe storage and identification of dangerous substances and preparations.
Part III of the Bill deals with safety on the installation itself. Section 22 specifies matters which may be the subject of safety regulations. These include the operation of support vessels, aircraft, work processes, pipeline works and matters listed in the Schedule to the Bill, for example, medical and training requirements, and emergency procedures.
Other sections of Part III deal with safety representation and may be brought into force by regulation. Section 23 allows for selection by the workers of a safety representative and deputy safety representative to represent them at consultations with the installation manager on safety, health and welfare. Section 24 outlines a procedure for the selection by the workers, if they so wish, of a safety committee to assist the owner and the installation manager in securing compliance with all safety provisions and regulations. The committee may appoint a safety delegate and deputy safety delegate. There is provision in section 25 for appointment by the installation manager of a safety representative or safety committee in default of any initiative in that regard by the workers.
Under section 26 the owner of an installation will be required to draw up a statement of policy specifying the manner in which the safety, health and welfare of the employees will be secured. The installation manager must make a copy of the statement available to any safety representatives or safety committee, or, if neither exists, to any employee on the installation who requests a copy.
As I stated earlier, these provisions on safety representation reflect my concern to highlight the importance of worker involvement in safety matters. I recognise that ultimately a framework for involvement can only succeed in its purpose if it is suited to its environment. Following the publication of the Barrington report on Safety at Work, my Department have been working, in liaison with the Interim Board for Occupational Safety and Health, on the drafting of legislation to give effect to its recommendations. The main criticism which this type of safety representation has attracted is that it has often remained unused or fallen dormant. In this context, it may be necessary to review at a later stage how we provide for safety representation and worker involvement in safety matters generally.
Part IV of the Bill lays down the procedures to be followed in case of accident, injury or death and in the event of the occurrence of disease on an installation. In sections 27 and 28 I am proposing the establishment of procedures to be followed where death occurs as a result of accidents on or around an installation. Written notice must be given immediately to both myself and the Minister for Energy.
There is also a prohibition on interference with the scene of an accident for a specified period unless an industrial inspector of my Department has visited the installation and agreed to any proposed changes. Section 30 lays down procedures to be followed where a person on an installation is found to be suffering from a prescribed disease. I have taken power to order, where I consider it appropriate, a formal investigation into any accident, disease or other occurrence notified to me under the legislation. In the discharge of my functions under the Bill I will have the benefit of professional advice from an industrial medical adviser, who may be vested with the powers of an industrial inspector.
Parts V and VI which conclude the Bill deal with offences and set out the penalties for breach of provisions of the Bill and with the powers of the industrial inspectors of my Department. In relation to penalties there is provision for daily fines for continuing offences and a court may impose a prison sentence for an offence likely to cause death or serious injury, a dangerous accident or endanger safety.
In section 42 there is also provision for the ultimate sanction against a persistent offender which empowers an inspector to impose such prohibitions, restrictions or requirements as he considers necessary to safeguard safety or health and in case of any danger or risk of danger to request measures to be taken to deal with it. An inspector may also apply to the High Court for an order prohibiting continuance of activities carried on in contravention of such an imposition of requirement. The inspectors are also given the right of access to offshore installations and the right to make any examinations, inquiries and tests necessary to ascertain whether the Bill and the regulations are being complied with.
The Bill will no doubt benefit from the detailed scrutiny of this House. I will, of course, be prepared to consider any constructive suggestions which Senators may wish to put forward. I am satisfied that the Bill will provide an effective framework for the achievement of the objectives of all those concerned with the safety, health and welfare of persons employed on offshore installations.
I commend the Bill to the House.