Emmet Stagg
Ceist:18 Mr. Stagg asked the Minister for Energy if he has any plans to encourage the Irish National Petroleum Corporation to expand its petrol retail business in 1990.
Ceisteanna—Questions. Oral Answers. - Irish National Petroleum Corporation.
Pat Rabbitte
Ceist:31 Mr. Rabbitte asked the Minister for Energy if the Government are planning any expanded role for the Irish National Petroleum Corporation either in relation to direct involvement in exploration or in retailing; and if he will make a statement on the matter.
I propose to take Questions Nos. 18 and 31 together.
Irish National Petroleum Corporation operations encompass the purchase and refining of crude oil, the supply of 35 per cent of Irish market requirements of petrol and gasoil to the distribution companies and associated trading of intermediate and final petroleum products. There are, at present, no plans for an expanded role for the corporation in the areas of exploration or retailing.
May I ask the Minister whether the role of the Irish National Petroleum Corporation is under review in the context of this working group who, I understand, are considering among other things, selling off all of the purchasing, refining and supplying of their 35 per cent role to other interests? Are the working group considering a future role for the Irish National Petroleum Corporation if this occurs?
If there is a successful outcome to the proposal to enter into a new arrangement for the ownership or management of Whitegate, the future role of the Irish National Petroleum Corporation will have to be considered from that point on.
Is it not the case that the Minister said he is considering selling the refining and supplying aspects of the market either in part or in toto? If this is done in toto it would seem that the carpet is being pulled out from under the feet of the Irish National Petroleum Corporation.
In the event of some kind of sale or joint venture arrangement being entered into, it might be necessary to review the role of the Irish National Petroleum Corporation. In the event of an outright sale it seems obvious that it would be necessary to review their role from there on in but in the event of a joint venture it may not. We should wait and see the outcome of the invitations issued to tender. There is an open invitation to any interested company to come forward with proposals to the Government. That invitation still stands and we are still distributing information on Whitegate to companies who contact us.
In regard to Question No. 31, does the Minister not accept that it is important for the Irish National Petroleum Corporation or Whitegate to have a role in the retail area in view of the very serious threat to supplies when the multinationals, who control most of our retail at this time, have in recent years threatened to cut off supplies at the retail end? In order to maintain our economy internally, it is essential for the Irish National Petroleum Company or Whitegate to have a role in the retail area.
I do not agree that it is essential, but I certainly agree that it is an option which must at all times be kept in mind. It is one possibility in the event of future arrangements. I see no reason it could not be involved in the distribution trade as the terms under which it was established would allow for that. My objective is a satisfactory future for Whitegate refinery. Other decisions would have to be contingent on the decisions made about the future of Whitegate.
I accept the point the Minister makes about commercial arrangements in regard to Whitegate. My point is that a crisis point was reached here some two years ago when the multinationals effectively declared war on this State by refusing to distribute products through their retail outlets. The Minister at the time assured the House that he would look seriously at the question of Whitegate having a role in the retail area. Is the Minister taking that into account in considering the options?
None of the succeeding Ministers ever took that step. The possibility is still there and it could be a very worth-while proposal in the event of certain new arrangements being made. I am not discounting it but it would be foolish to make any decision in regard to that matter before we know what the future of Whitegate will be.