Vol. 533 No. 3
25 Mr. Stanton asked the Minister for Public Enterprise the developments that have taken place, to date, and any undertakings that have been entered into in relation to the proposed sale of certain assets and liabilities of the Irish National Petroleum Corporation Limited; the anticipated investment required to be made at the Whitegate Oil Refinery; if she will provide a timescale in this regard; and if she will make a statement on the matter. [9085/01]
The INPC signed a non-binding heads of agreement with Tosco Corporation on 28 July 2000 regarding the potential sale of INPC's refining and storage operations to the US company. Since then, INPC and Tosco Corporation have been engaged in negotiations with a view to agreeing the detailed terms of the transaction. My Department, together with the Department of Finance, has been involved in the process as have our legal and financial advisers, Matheson Ormsby Prentice and Arthur Andersen, respectively.
These negotiations are at an advanced stage. However, no undertakings have been entered into by any party to the proposed transaction. I assure the House that no binding commitments will be made in relation to the disposal of these facilities unless I am satisfied that the proposed transaction is fully acceptable. Furthermore, as I stated in replies to previous questions on this issue, I expect to bring legislation before the House to underpin any functions I may be required to perform on behalf of the State in the matter.
Part of the proposed sale involves a commitment by Tosco Corporation to continue to operate the facilities in question for at least 15 years. This would involve, for example, undertaking any investment at the Whitegate refinery necessary to satisfy the requirements of the EU Auto Oil II Programme which are expected to come into effect in 2005. These requirements have yet to be finalised and it is not possible at this stage to estimate the extent of the investment that this and-or any subsequent environmentally based legislation will entail.
It is also anticipated that Tosco Corporation will consider other developments at the refinery, subject to commercial evaluation. If the transaction goes ahead, the extent and scheduling of any such investment would be a matter for Tosco Corporation.
I support the Minister's view that this matter should be dealt with slowly. How will the proposed 15 year undertaking be guaranteed?
I had a good meeting with a large number of people approximately three weeks ago and that was one of the main questions. The European directives that govern transfers of undertakings and other directives will apply in this case. However, it is one of the issues that must be teased out further because, in this day and age, I am not sure it is possible to give guarantees of everlasting jobs. For example, we are aware of what happened regarding the binding letters given to TEAM Aer Lingus employees that stated they would have jobs for life. The world has moved on and I do not know of any jobs, least of all our occupation, where it could be said that people have jobs for life.
Is the Minister concerned about the ongoing operation of the refineries for the good of the State? Has there been any direct contact between departmental officials and Phillips, the proposed new owners of Tosco Corporation?
Yes. This issue also arose on the last occasion this matter was discussed during Question Time. Departmental officials and representatives of Phillips have had discussions on a few occasions. They have no difficulty with the proposal and they endorsed the negotiations to date between Tosco Corporation and the Department. The INPC and departmental officials have been in contact with senior representatives of Tosco Corporation regarding Phillips' announcement and they have undertaken to discuss with us any concerns that may arise. However, there are still many bridges to cross before this matter is finalised. I told the employees two weeks ago that I was available to meet them at any time and that I was not rushing the deal.
Does the Minister agree a 15 year undertaking would not be worth the paper on which it was written because it could not be enforced? Is the Minister concerned about the tightening of refining capacity in Britain, Europe and the United States? Does she agree that we must ensure the refinery in Whitegate remains open? Otherwise, Ireland could be exposed on the international stage because of a lack of refined product to fuel the economy.
Regarding the Deputy's question about a guarantee of employment—
I referred to the operation of the company, not employment guarantees.
I thought the Deputy referred to employment guarantees for 15 years.
No.
These issues have created doubts in my mind and also in the minds of the employees. The meeting was extremely open – I am sure the Deputy's contacts will confirm that – but I cannot yet say what conclusion will be reached on all the matters of concern to the employees. However, I am not sure if future Governments will continue the mandatory regime that is currently in operation and I expressed this view to the employees.
