asked the Minister for Industry and Energy if he will ensure that all the requirements that are necessary for drilling for oil off our coasts and the bringing ashore of commercial oil finds will as far as possible be completely of Irish manufacture; and if he will make a statement on the matter.
Written Answers. - Oil Drilling Equipment.
256.
Since drilling for oil and gas offshore Ireland began in 1970, it has been the policy of successive Governments to ensure that Irish industry should benefit, to the fullest possible extent, from exploration and development activities. Section 62 of our Exclusive Offshore Licensing Terms of April 1975, which are embodied in all exploration licences granted since that date, provides that licensees shall use goods and services of Irish origin in their activities as far as they are competitive on quality, service, delivery period and price.
Responsibility for implementation of this section of the terms has been assigned to the Institute for Industrial Research and Standards who closely monitor all contracts awarded by the oil companies or their sub-contractors. The success of the IIRS efforts is amply demonstrated by the fact that over the past seven years participation by Irish industry has increased to approximately 85 per cent of the total accessible market. This represents earnings of £66 million or one-third of the total available business.
It is unrealistic to expect that Irish goods could completely replace foreign goods and services, particularly at this stage of development of our offshore industry. At present, Irish Industry is not capable of supplying the total requirements of the oil industry but I am confident that it can build on past experience and substantially increase its share of the market.
As regards possible future production of oil it must be noted that no commercial oil find in the Irish offshore has yet been declared by any exploration company or group of companies and, consequently, I cannot say if oil will in fact be produced or brought ashore. However, in the event of a commercial declaration, every effort will continue to be made to maximise Irish participation in such a development. While the provisions of section 62 of the licensing terms would apply in those circumstances, Irish firms would, equally, be required to compete realistically for any business arising.
In the final analysis, the task of getting oil ashore would rest with the operating companies and if such a development is to be commercial, then the companies must be given the necessary freedom to manage the project on a commercial basis, provided, of course, they act in the national interest. Any greater constraints on exploration companies would be undesirable in that they could act as a disincentive to development projects and even to further exploration of our Continental Shelf and might conceivably be in breach of our international obligations under the EEC Treaty.