andMr. O'Malley asked the Minister for Industry and Commerce why he permitted the award of a “Hook-Up” contract for an oil rig to a foreign company (details supplied) instead of to an Irish-based company, with adequate facilities to carry out the work, which also tendered.
Ceisteanna—Questions. Oral Answers. - Oil Rig Contract.
21.
The assumptions on which the Deputies' question is based are not in accordance with the facts of the case.
Is it a fact that this contract has been awarded to a Dutch-American combine and not to an Irish firm?
The situation is that the two combines in the running for this contract both had Irish participation of a roughly equivalent degree.
Is the Parliamentary Secretary saying that the two combines which failed to get the tender had only a degree of Irish participation.
No. I said the two combines which were in serious competition for this job both contained Irish participation of a roughly equivalent degree.
Is it not a fact that the firm in Wexford is an Irish registered firm with foreign participation and is it not also a fact that this particular firm employs about 600 workers who will possibly become redundant as a result of the firm not getting this contract?
No, they will not.
The situation is that in effective terms the Irish participation is roughly equivalent in both concerns. The decision was not a decision by the Minister since it is not a decision reserved to the Minister. It is a commercial decision taken by a commercial firm on the best evidence available to that firm and, if that proves to be an unwise decision from a commercial point of view, the firm will suffer the consequences thereof.
Is the Parliamentary Secretary now telling us that an Irish based combine has secured this contract?
No. I will repeat what I have said: from an effective point of view the two combines have a roughly equivalent degree of Irish participation.
Is the Parliamentary Secretary aware that one of the combines as he calls them——
Actually that was the word used by Deputy Barrett.
——is giving employment in Ireland to about 600 Irish people? What employment is the other combine giving in this country? Is it giving any?
The degree of employment given in respect of a particular contract by a particular firm depends on whether or not it gets the contract. The firm will give employment in this country to a significant degree.
Is the other firm Irish based and does it manufacture on that base?
It has substantial Irish associates and I am assured that in effective terms the Irish participation and the Irish benefit is roughly equivalent.
Could the Parliamentary Secretary say whether the work will be carried out by the firm awarded the contract?
I gather that, no matter who gets the contract, this work will be carried out in different locations. It is of the essence of this type of work that it involves a substantial degree of sub-contracting work and, to a large extent, it is not critical where the contractors are located. What is very important is where the overall load is placed. It is that matter in relation to which the degree of Irish involvement is important.
Will the Parliamentary Secretary state whether the substantial part of the work will be carried out in Ross or Cork Harbour as there are no other facilities available for this kind of work?
I am not in a position to go into detail in relation to where the individual parts of the work will take place. However, if the Deputy wishes to discuss that specific detail, I suggest he put down another question and the Minister will get as much information as possible on the matter.
I have allowed a large number of supplementaries on this question; one brief supplementary from Deputy Barrett and Deputy Browne.
This involves 600 workers. Is the Minister satisfied, in view of previous statements made here and outside by the Minister for Industry and Commerce to the effect that all work, where possible, would be carried out in Ireland by Irish workers, that this is being complied with in this instance where a substantial part of the work will be done outside the country?
An important factor appears to be that in the case of the proposal which has been accepted the use of Irish expertise up to the level of engineer will take place, whereas it was understood that in respect of the other proposal workers from the grade of foreman upwards would be brought from another country. In terms of the actual Irish input in manpower terms it appears that the tender which has been accepted is more favourable from an Irish point of view.
Where will this Irish input take place?
Is the Parliamentary Secretary saying definitely that there will be no loss of work to Irish-based workers as a result of the giving of this contract to the combine he spoke of?
The net overall situation as far as Irish participation is concerned is as I indicated in reply to the first supplementary. I cannot say that it will be the same for the particular workers in question because, obviously, workers in the firm that did not get the contract will not have the same benefits as workers in the firm which did. I gather that in practice a lot of the work will be subcontracted and in many cases the subcontractors would be the same no matter which company got the contract.