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Dáil Éireann díospóireacht -
Wednesday, 28 Mar 1990

Vol. 397 No. 6

Ceisteanna—Questions. Oral Answers. - Whiddy and Whitegate Oil Refineries.

Brian O'Shea

Ceist:

4 Mr. O'Shea asked the Minister for Energy if he will make a statement on recent reports that approaches have been made to various multinational companies and to Saudi Arabia, about the development of Whiddy and Whitegate Oil Refineries, County Cork; the progress made in relation to any such approaches; and if he will make a statement on the matter.

Jim O'Keeffe

Ceist:

14 Mr. J. O'Keeffe asked the Minister for Energy if the European Commission has responded to the Government's proposals to upgrade the Whitegate Oil Refinery, County Cork; and if he will make a statement on the matter.

Jim O'Keeffe

Ceist:

36 Mr. J. O'Keeffe asked the Minister for Energy the proposals which are at present under consideration for the use of Whiddy Island Oil Terminal, County Cork; and when it is expected that a conclusion will be reached on these proposals.

Mary Flaherty

Ceist:

38 Miss Flaherty asked the Minister for Energy whether the task force on development of the Whiddy-Whitegate facilities, County Cork, has reported to him; and if he will make a statement on the matter.

Charles Flanagan

Ceist:

44 Mr. Flanagan asked the Minister for Energy whether the task force on development of the Whiddy-Whitegate facilities, County Cork, has reported to him; and if he will make a statement on the matter.

Mary Flaherty

Ceist:

70 Miss Flaherty asked the Minister for Energy if he is in negotiation with the Government of any oil producing country regarding the future use of the Whitegate and Whiddy Oil Refineries, County Cork.

Séamus Pattison

Ceist:

71 Mr. Pattison asked the Minister for Energy if he will give an up-to-date progress report on his efforts to secure a partner for the upgrading and development of Whitegate Oil Refinery, County Cork; and if he will make a statement on the matter.

Tomás MacGiolla

Ceist:

81 Tomás Mac Giolla asked the Minister for Energy if the report of the task force established in May 1989 to identify all realistic options for the facilities at Whitegate, County Cork, has yet been received by the Government; if he will publish the report; if negotiations are under way with any other Government or firm regarding the possible development of Whitegate and the facilities at Whiddy; and if he will make a statement on the matter.

Gerry O'Sullivan

Ceist:

83 Mr. G. O'Sullivan asked the Minister for Energy if he will give an up-to-date progress report on the upgrading of Whitegate Oil Refinery, County Cork; and if he will make a statement on the matter.

I propose to take Questions Nos. 4, 14, 36, 38, 44, 70, 71, 81 and 83 together.

A task force was established in May 1989 by decision of the Government to identify all realistic investment options for the facilities at Whitegate and Whiddy. With the assistance of international consultants, the task force are currently evaluating the technical, economic and financial aspects of the options which have been identified. This work is nearing completion and I expect to receive the report in the very near future.

No decision has been made yet on the publication of the report of the task force. In view of the confidential and sensitive nature of information which is likely to be contained in the report, it is unlikely that the entire report will be published. I will consider the question of publishing the report when I have studied its contents.

In the meantime, I am continuing to pursue appropriate opportunities which might lead to an oil producer or an international oil company participating in the proposed upgrading of the refinery and reactivation of the terminal. Because of their confidential nature, however, I am not in a position to discuss the details of individual approaches made by third parties regarding these facilities. Discussions with interested parties are ongoing but no final proposals are under consideration by me as yet.

While the commission have been informed of the Government's general intentions on the upgrading of the refinery, any further formal approach to the commission could only be based on firm proposals.

Could the Minister inform the House whether he intends to publish a statement outlining the philosophy behind these attempts at joint venture and to what extent it is his purpose to make Ireland independent of multinationals in respect of oil imports? Can he tell us what is the present status of the Nigerian National Oil Corporation proposals? What has happened to the £50 million the State received for the disposal of its share in Tara Mines which was supposed to be used to upgrade Whitegate?

The Deputy has asked a series of questions, some of them unrelated to the question before us.

The figure mentioned by the Deputy is incorrect; it is £25 million. That is being held and is available for investment in the upgrading of the refinery if and when a decision is made to undertake that work. No application has been received from the Nigerian National Petroleum Corporation but there was an application from a consortium which had a Nigerian interest. I replied on numerous occasions to questions about that matter in this House and indicated that that application was rejected last September.

The position in regard to the proposals to upgrade the refinery has been explained in the House on a number of occasions. I do not mind stating very briefly that the intention is to seek to achieve a situation where the oil supplies available to this country are made as secure as possible. The Government see the retention of a refinery as an important part of the policy in achieving that objective. Because of the age of the refinery, the new standards that are required and other factors, the refinery as it stands is not able to produce the product at a price which is competitive with the imported product. Therefore, there is a mandatory régime in operation whereby oil distributing companies here are required to take 35 per cent of their oil distribution requirements from the national refinery at Whitegate. In order to guarantee the continuation of the Whitegate refinery. the Government have invited interested parties to come forward with proposals for investment in upgrading that facility, which would result in the removal of the mandatory régime and a modern refinery being available to the Irish consumer. That is the philosophy behind the approach that has been taken and there has been no change in that.

The questions we are dealing with now are questions nominated for priority to which a rigid time limit applies. I am seeking the co-operation of all concerned, therefore, to strive to ensure that we shall dispose of these five questions within the prescribed time laid down in Standing Orders.

Will the Minister give an assurance that no joint venture will be entered into without first producing a full report to the Dáil? Will he assure the Dáil that all proposals will be published and examined equally, objectively and fairly?

The only assurance I can give the Deputy is that all proposals will be examined fairly and the House will be kept fully informed of the Government's decisions in these matters.

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