Vol. 518 No. 6
63 Mr. Finucane asked the Minister for the Marine and Natural Resources the progress made in his talks with SIPTU and Enterprise Oil to maximise opportunities for industry and employment here as a result of the Corrib gas find. [12897/00]
I refer the Deputy to my replies to similar questions raised in the House on 10 February and 22 March last.
As I mentioned previously, my Department set up and is facilitating discussions between representatives of the Irish Offshore Operators Association, the Irish Congress of Trade Unions, Enterprise Ireland and the Irish Offshore Suppliers Association on the utilisation of Irish resources and services in the offshore petroleum industry. These discussions are ongoing.
Exploration and production companies have employed, and continue to employ, Irish workers in offshore exploration and development, particularly in the Kinsale gas field. It remains Government policy that the Irish economy benefits to the maximum extent possible from any current and future offshore exploration activities, within the constraints of EU legislation. I have continually impressed on the Irish Offshore Operators Association and the individual operators that Irish workers and suppliers of goods and services, including service ports, must be given opportunities to participate fully in such activities and I will continue to do so.
I assure the Deputy it is my intention to maximise the use of Irish goods, services and employment in respect of all offshore operations. Crucial to that is the need to ensure all potential contractors or suppliers of service are made aware of present and future requirements of operators and main contractors. As I said in my previous reply, I have asked Enterprise Ireland to intensify its business awareness efforts. In that context, a seminar called Contract Awareness for the Offshore Sector was held in Westport on 14 April last. The seminar brought together the main parties involved in the Irish offshore sector and enabled Irish companies in the goods and services sector to hear at first hand of the opportunities offered by the offshore sector.
I am pleased to say the seminar was a success and I am confident that, as a result, Irish companies will realise they have the skills to participate in the exploration industry through the supply of goods and services. There is a commitment by Enterprise Oil to increase servicing activity from Ireland this year and it has already agreed contracts with a number of Irish companies for the provision of various services.
In addition, I have agreed with Enterprise Ireland that it will work directly with the Irish Offshore Operators Association and specific operators to ensure there is early notification of future offshore work to potential Irish participants. I am glad to say that the Irish Offshore Operators Association and its members are committed to fully supporting these opportunities.
What volume of jobs and business will be created by the Enterprise Oil service base in Killybegs in Donegal compared with its other service base in Scotland? Was there any success this year in regard to the rig Enterprise Oil will be drilling from off the coastline, in terms of the SIPTU group of workers who traditionally worked on offshore rigs during the summer season or the "weather window", as it often described? In previous years, Enterprise Oil has shown no commitment to employing such workers in the traditional way. Has there been any success or movement in that direction?
I cannot give exact figures in regard to Killybegs. However, there has been a considerable increase in the services and work being carried out from there. As far as I am aware, it is more than double the services carried out from Killybegs last year. People in Killybegs are quite happy with the level of activity being generated this summer in comparison with last summer.
I am not aware of any improvement in the situation concerning the SIPTU workers. I discussed this matter with Enterprise Oil. I was informed that the offshore rig, which is now in operation, would bring its own team of workers and, consequently, it would not be possible to employ the SIPTU workers. I have re-emphasised to Enterprise Oil my desire that Irish workers would be employed in all sectors of its activities. I will continue to press that case with Enterprise Oil.
While I recognise that under EU law the Minister cannot compel Enterprise Oil to employ Irish rig workers, it is regrettable that Enterprise Oil, unlike other companies, has not abided by a tradition which dates back to the 1970s. In regard to looking to the future and creating goodwill, particularly with SIPTU, it is regrettable that no part of the contract in terms of the staffing of the rig – admittedly the rig arrives crewed – provides for Irish workers even on the catering side. I wish to express my disappointment that Enterprise Oil has not grasped the nettle and has not encouraged Irish workers to work on the rigs, as in the past.
In regard to the trillion cubic feet of gas which, hopefully, will be brought ashore, have any projections been done by the Department and Enterprise Oil on the number of potential jobs, direct and indirect, which will be created? Now is the time to plan for the future.
On the second part of the question, we have to wait until the appraisal well is completed – as the Deputy is aware, it has been in progress for the past couple of weeks – before we or Enterprise Oil will know whether the find is commercial. Only then can any further appraisal be done on the job potential. In regard to the SIPTU workers, the Deputy will be aware of the poor relationship which has existed between SIPTU and Enterprise Oil in the past. I have tried and continue to try to repair that bad relationship but until such time as it is repaired and there is goodwill once again on both sides, there will not be much progress in respect of the SIPTU workers. That is not to say Irish people are not employed on the rig. As far as I am aware, there may well be Irish people based in the UK. I am aware that the catering supplies company has some Irish involvement, although I am not exactly sure what it is. I was reassured by Enterprise Oil that it would try to accommodate Irish workers in whatever way possible within EU regulations.
Where there is a well there is a way.
