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Dáil Éireann díospóireacht -
Wednesday, 22 Mar 2000

Vol. 516 No. 4

Ceisteanna–Questions. Priority Questions. - Offshore Exploration.

Eamon Gilmore

Ceist:

6 Mr. Gilmore asked the Minister for the Marine and Natural Resources if his attention has been drawn to the recent call from SIPTU to commission an independent assessment of the impact of oil and gas exploration on the economy in view of what it regards as questionable conclusions made in the recent study prepared by the Irish Offshore Operators Association; and if he will make a statement on the matter. [8188/00]

As I outlined in my reply to a similar question raised in the House on 10 February, the study referred to by the Deputy presents empirical data and costs about the number of exploration and appraisal wells drilled off Ireland since 1971 and points out the employment created onshore arising from this expenditure in the past and the potential for such employment in the future. The study draws straightforward conclusions from these levels of past activity. It also puts forward a programme of action which addresses the issue of opportunities for Irish industry in the domestic and international offshore industry. The report is a constructive contribution to public discussion on this issue.

Since 10 February I met a delegation from the Irish Offshore Operators Association and had a useful discussion on how Irish industry could increase its share of goods and services supplied to the offshore exploration sector. I highlighted my expectations that Irish companies should be given full and fair opportunities to compete at all stages of exploration and to bid for work. I also expect that every effort will be made to accommodate small suppliers.

I mentioned in my reply in February that I was organising a business awareness seminar for the suppliers of goods and services to the exploration and production sector. A seminar called Contract Awareness for the Offshore Sector will be held in Westport on Friday, 14 April and is being organised by my Department in conjunction with the Irish Offshore Operators Association. We are bringing together all interested parties to ensure our strategies are effective and our bids are competitive in all respects if and when contracts are on offer. I will be able to present for the first time to any exploration concern a full and comprehensive inventory of Irish skills and know-how.

Will the Department ensure that party spokespersons on the marine and natural resources are invited to participate in the seminar in Westport on 14 April? It is important that representatives of the House are present at that seminar because we have consistently raised this matter. Will the Minister reiterate to the seminar his strong statement of 3 March when he said he expected and hoped that Irish companies would be given a fair and reasonable opportunity to compete for contract work?

In keeping with our policy, we will insist that Irish companies are able to compete equitably. This seminar will highlight the Irish expertise available for any company which intends working off our coast. It would be more beneficial economically for a company working offshore to have an Irish base. The seminar is being held to make companies aware of the activities of others and to ensure everyone has a say. I have no difficulty inviting anyone with an interest in this area or in securing offshore jobs for Irish people to attend the seminar.

(Dublin West): I listened to what the Minister of State said in reply to priority questions. It is well known in the oil and gas industry that there is fabulous mineral wealth in the Corrib field. However, the Government continues to collude in giving away this wealth to a multinational company at virtually no return to the people. All royalties are free and the taxation regime is laughable. I ask the Minister to seriously review the situation so that the people will benefit from the mineral wealth off our coast in the same way as the Norwegians benefit from their mineral wealth.

There are no guarantees from Enterprise Oil or anyone else involved that Irish workers will be employed and the Government has not insisted that they should be. It is clear the operation will be run without Irish workers. Does the Minister of State agree that the correct procedure would have been to set up a State owned exploration company under the auspices of the Irish National Petroleum Corporation to bring the gas ashore for the benefit of the people rather than for multinational profit?

The Deputy seems to think there is a lot of oil and gas offshore. I wish that was the case. I agree with the Deputy that our economy, workers and companies should benefit from offshore exploration. That is why we are holding a seminar. It is wrong to suggest there is collusion. It was incumbent on this and previous Governments to encourage companies to drill off our coast. I assure the Deputy we will do all we can to ensure Irish workers benefit from this bonanza.

(Dublin West): The Minister of State knows there is wealth in the Corrib field. It is being siphoned off.

I call Question No. 7. We have exceeded the time on Question No. 6.

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