David Stanton
Ceist:138 Mr. Stanton asked the Minister for Public Enterprise the basis of the State's ownership of the Irish National Petroleum Corporation at present; and if she will make a statement on the matter. [14881/01]
Written Answers. - Irish National Petroleum Corporation.
David Stanton
Ceist:139 Mr. Stanton asked the Minister for Public Enterprise the nature of the assets it is proposed to transfer on the sale of the Irish National Petroleum Corporation; the exact valuation applied to each of the assets; the basis for calculating the value of these assets. if the transaction will involve the State retaining responsibility for the existing debts and liabilities of the Irish National Petroleum Corporation; if so, the extent of this involvement; and if she will make a statement on the matter. [14882/01]
David Stanton
Ceist:140 Mr. Stanton asked the Minister for Public Enterprise if an interdepartmental review group has been established to oversee the sale of the Irish National Petroleum Corporation; the date on which such a group was established; the composition of such a group; the number of meetings the group has held since its establishment; and if she will make a statement on the matter. [14883/01]
David Stanton
Ceist:141 Mr. Stanton asked the Minister for Public Enterprise when the Irish National Petroleum Corporation Limited Bill will be published; if any deals can be entered into, signed or completed prior to the Bill being signed into law; the plans she has to enter into any agreements either orally or in writing prior to the passage of the legislation; if so, if she will give details on this matter; and if she will make a statement on the matter. [14884/01]
I propose to take Questions Nos. 138 to 141, inclusive, together.
The Irish National Petroleum Corporation Limited was incorporated in 1979 under the Companies Acts. It is owned by the State by virtue of the fact that the shares in the company are held in the name of the Minister for Public Enterprise.
The proposed transaction between the Irish National Petroleum Corporation, INPC, and Tosco Corporation involves the disposal of the INPC's business and certain of its assets, chiefly the Whitegate Refinery and the Whiddy Oil Terminal, for a consideration of US$100 million. This valuation represents the commercial judgment of the proposed purchaser as to the value of the overall package which it proposes to acquire, and is the best deal available after an extensive search process.
The State is retaining responsibility for the existing debts of the INPC. In addition, the purchaser has sought a ministerial guarantee which would have the effect of the State being liable for any of the INPC's liabilities under the legal agreement should the INPC be unable to discharge them. This guarantee could cover certain potential environmental liabilities. The details of the latter have been the subject of substantial negotiations between the parties and I am satisfied that it would be against our commercial interest to disclose them at this time.
To ensure that the shareholder interest was adequately reflected in the process and in the negotiations, my Department, the Department of Finance and the external consultants Arthur Andersen and Matheson Ormsby Prentice have been actively and directly involved for several months. The chairman of the INPC and an assistant secretary from my Department have been leading.
As the Deputy will be aware, I have been advised by the Attorney General that in order to complete the transaction, legislation will be necessary to provide for the guarantee referred to and other functions that I might exercise in relation to the sale. As matters stand, no undertakings have been entered into by any party to the proposed transaction. Prior to the enactment of the legislation, it would be possible for me, with the consent of the Minister for Finance, to authorise the INPC to sign legal documentation relating to the proposed transaction, should the Government deem this appropriate. No such authorisation has issued to date.
I would like to again assure the House that no binding commitments will be made by the State in relation to the proposed transaction unless and until I am satisfied that shareholder concerns have been fully addressed and the required legislation has been enacted.