Vol. 496 No. 1
36 Mr. Finucane asked the Minister for the Marine and Natural Resources the undertakings, if any, he has entered into with the oil companies, who will be involved in oil and gas drilling in 1999, as to actual jobs, services and so on; and if he will obtain firm commitments from successful companies involved in oil and gas exploration to ensure the Irish economy fully benefits from these discoveries. [22042/98]
It is Government policy to ensure that the economy benefits to the maximum extent possible from offshore exploration activities within the constraints of EU legislation. I have continually impressed on the Irish Offshore Operators Association and individual operators that Irish suppliers of goods and service and Irish workers must be given opportunities to participate in such activities and I will continue to do so.
Enterprise Ireland, under the aegis of the Department of Enterprise, Trade and Employment, has responsibility for ensuring maximum input of Irish industry in offshore exploration operations. It has been active in this area for some time, has assisted operators in identifying Irish companies which can tender for work and has also assisted companies by identifying opportunities that are arising in petroleum exploration and production.
There are no powers available to require undertakings in regard to jobs or the provision of services with the oil companies involved in off-shore exploration activities. Responsibility as regards employment of workers and the provision of services and related issues is strictly a matter for the exploration companies and their contractors. There are no powers available to oblige operators engaged in exploration activities in the Irish offshore area to use Irish workers and suppliers of goods and services. The imposition of such conditions on licence holders is precluded under EU regulations.
I will continue to do everything possible to encourage individual operators to provide Irish workers with opportunities to participate in off-shore activities. My Department has written to SIPTU and the Irish Offshore Operators Association urging them to discuss the problem of employment in offshore exploration with the intention of arriving at an acceptable solution.
Does the Minister agree that this was a bleak year for people involved in offshore oil exploration in terms of workers and the determination of the supply ship contract for Foynes? Does he also agree that Enterprise Oil's commitment to Ireland this year was minimal? Having got away with that, it appears that the company's commitment in terms of exploration for next year lies with Aberdeen in Scotland. Looking to the future, therefore, I was not filled with optimism by the Minister's reply. It appears that Enterprise Oil has set a precedent for others involved in off-shore oil exploration activities.
With regard to explorations currently under way, it has been optimistically noted that the company struck good quantities of gas and will probably become involved in further exploration. Rather than continuing to utter pious platitudes, the Minister must take more forceful action to ensure that Irish workers are employed on off-shore oil rigs. Under the exploration licensing terms issued by the then Minister for Energy, Deputy Molloy, in 1992, recruitment opportunities were to be were specifically earmarked for Irish workers. It is regrettable that we have moved in the opposite direction. Will the Minister take a more forceful stance on this issue than he has heretofore?
The Deputy is wrong on a number of points of fact. I explained earlier that since 1992 I have been barred from taking action in this area by EU regulations. I understand that people may state, with hindsight, that this happened before. Many things happened prior to this country becoming a member of the EU and before people had equal rights to work throughout the EU. That is the problem. The company and the union involved are aware I made numerous efforts to get them to come together and work together and I will continue to do so. I met the Irish workers on that rig. They worked with the company supplying labour to the Sedco rig on different operations. This was a short-term operation to carry out further investigation and to drill an exploration well. The company told me it was willing to take on board Irish workers for the long haul and not only when it was offshore in Ireland.
The Deputy said he regarded the company's involvement as minimal. In fact it spent in the order of £20 million on that exploration well. It was prepared to spend at least £2 million to £3 million in Foynes but ultimately was not allowed do so. It spent money in some other Irish ports. Given that the company was blocked at Foynes it went to Ayr. I fear if that were to happen again in Irish ports, more of that business would go to Ayr and other locations. The Deputy asked how optimistic——
The time for dealing with that question is exhausted. We must proceed to Question No. 37. The Chair has no discretion in applying the rules.
The Chair should have discretion.
The Chair has already given almost an extra minute on the question.
It has been very much on the Minister's side.
We must proceed to Question No. 37.
I agree with the Deputy that the outlook for this well is optimistic and negotiations are proceeding in relation to the long-term position.
I have called Question No. 37.
