Brian Leddin (Limerick City, Green Party)
Link to this: Individually | In context | Oireachtas source

No apologies have been received. The purpose of today's meeting is to conduct the Committee Stage consideration of the Oil Emergency Contingency and Transfer of Renewable Transport Fuels Functions Bill 2023. I welcome the Minister of State, Deputy Ossian Smyth. Before we commence our consideration of the Bill, I call on the Minister of State to make some opening remarks.

Ossian Smyth (Dún Laoghaire, Green Party)
Link to this: Individually | In context | Oireachtas source

I thank the Chairman for the opportunity to present the Oil Emergency Contingency and Transfer of Renewable Transport Fuels Functions Bill 2023 to the select committee. The main purpose of the Bill is to strengthen the Government's ability to manage stocks in the unlikely event of a curtailment of oil supplies. I acknowledge the broad support the Bill received in the Dáil last week.

This important Bill will strengthen the statutory provisions that are available to Government to respond to a severe or prolonged emergency. It will ensure adequate supplies for emergency and critical services and for the use of oil to generate electricity, if necessary, in the event of a major gas shortage. The Bill amends the National Oil Reserves Act 2007 to place a statutory requirement on the Minister for the Environment, Climate and Communications to produce an oil emergency response plan. It also provides for the establishment of an emergency register of oil suppliers in order to allow for timely communication between the Minister and oil suppliers during an oil emergency.

Provision is made for the transfer of oil-related excise data from the Revenue Commissioners to the Minister to assist in oil emergency contingency planning. In addition, the Bill amends the Fuels (Control of Supplies) Act 1971 to allow the Minister, by order, where there is a fuel emergency to provide for direction-making powers to ensure the supply of fuel to protect the operation of the electricity grid and other essential services.

The Bill also effectively transfers the statutory functions relating to renewable transport fuels from the Minister for the Environment, Climate and Communications to the Minister for Transport in line with the change in policy responsibility that took place in 2021. In addition, provision has been made for the Minister for Transport to make regulations to effect an increase in the use of renewable transport fuels in line with the renewable energy directive and climate policy. These provisions will further drive the use of renewable transport fuels, including the introduction of the E10 petrol standard, and will contribute to the State’s climate goals.

I do not propose to introduce any amendments today and I do not intend to bring forward any on Report Stage. I note that amendments have been tabled, and I look forward to the debate.

Brian Leddin (Limerick City, Green Party)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State for his opening remarks.

Richard Bruton (Dublin Bay North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

When a proposal such this, which increases the non-renewable percentage of fuel, is being introduced, there would normally be a regulatory impact assessment, RIA, of some sort. Some of these things can be quite expensive, and the least we can do is look at alternatives. The section does not include provision for an RIA. Would an RIA be carried out without the need to have it specified in the legislation?

Ossian Smyth (Dún Laoghaire, Green Party)
Link to this: Individually | In context | Oireachtas source

The Bill provides for a consultation period before changes are introduced. That is the period in which to carry out an assessment or allow for a public examination or debate before anything is introduced.

Richard Bruton (Dublin Bay North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

It should be a matter of course. The Government should undertake an RIA rather than expect it to be done through a process of people making submissions. It is necessary, but it is an expensive option. As a result, there is a need to at least look at alternatives or assess whether what is proposed is justified. There are physical constraints on what can be done in respect of these fuels. It would be good practice if the Minister of State asked his officials to include an RIA in the process of consultation.

Ossian Smyth (Dún Laoghaire, Green Party)
Link to this: Individually | In context | Oireachtas source

I will talk to my officials about that and come back to the Deputy.

Richard Bruton (Dublin Bay North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Does the Government have a list of critical services already extant or is that something that continues to evolve?

Ossian Smyth (Dún Laoghaire, Green Party)
Link to this: Individually | In context | Oireachtas source

There are a number of different ways of measuring what are critical infrastructure. It is already provided for in the network and information security directive from the EU which is being updated.

The Deputy will remember that during the pandemic a list of essential workers was compiled and decisions were made about essential services. There is an oil emergency response plan which has considered this but there is no definitive list. One of the reasons for that is it depends on what the nature or circumstances of the oil supply shock is. The Bill allows for the flexibility for the Minister to determine what those services would be or what the priority order would be, given the circumstances of the type of shock that occurred.

Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I move amendment No. 1:

In page 19, line 22, after "State" to insert "and after both Houses of the Oireachtas have approved the proposal by means of a vote".

This is a straightforward amendment. As the Minister of State will be aware, my party is generally supportive of the Bill. As we have outlined, it prescribes very significant powers to the Minister. Our amendment merely seeks to introduce a significant element of democratic accountability in relation to that, that any such measure to essentially take control of the oil industry here would need to be approved by both Houses of the Oireachtas. I do not know whether this is something that the Minister of State has considered in his preparation of this legislation but it is something which my party feels would strengthen it.

Ossian Smyth (Dún Laoghaire, Green Party)
Link to this: Individually | In context | Oireachtas source

I thank Deputy O'Rourke for the amendment. I have looked carefully at the proposal to see its implications. I can appreciate what the Deputy is trying to achieve here but I do not propose to accept the amendment.

The primary purpose of the amendments to section 3 of the Act of 1971, the Fuels (Control of Supplies) Act 1971, is to provide for a timely response by Government to an oil emergency or a gas emergency requiring fuel switching to oil to generate electricity. This is to protect the operation of critical services, including the stability of the electricity grid, and one needs a rapid response.

It should be noted that, currently, section 3 of the Act of 1971 already provides for the regulation or control of the acquisition, supply, distribution or marketing of fuel where there is a Government order in place under section 2 of the Act to provide for this power. That type of power is already on the Statute Book and could be used without the approval of the Oireachtas.

The purpose of these existing powers is to enable the Minister to provide for the maintenance and provision of fuels, in particular, to the emergency and critical services, in the event of a severe fuel emergency. Indeed, these powers have already been used by Ministers from time to time, from the 1970s up to 1999. That was done in response to oil shortages in the domestic markets and to support the continued operation of Whitegate refinery, which was deemed to be of strategic value to the State. In fact, the statutory instrument under section 3 of the 1971 Act which granted the Minister of the time the power to compel oil companies to purchase a proportion of their product requirements from Whitegate refinery was renewed annually for a number of years in the 1980s and the 1990s.

The amendments to section 3 of the Act of 1971 contained in this Bill allow the Minister, in addition to having the existing powers contained in the Act of 1971, to now also have the power to issue directions to oil companies or to relevant other persons to control the supply of fuel or to compel them to provide fuel on a priority basis to the emergency or critical services and for electricity generation and to protect the stability of the electricity grid. These powers of direction are now required as petroleum supply chains have evolved in recent years to be much more "just in time" in nature and Government intervention could potentially be required extremely quickly within two or three days. That would be to prioritise supply for the emergency or critical services with a need to potentially make multiple directions in response to what could be a dynamic supply situation.

This amendment that proposes that the Minister would require a vote of both Houses of the Oireachtas before he or she could issue directions to prioritise the supply of fuel to the emergency or critical services is contrary to the objectives of the amendments to the Act of 1971 contained in section 31 of the Bill. The Government must have the capacity, if it is necessary to intervene in the fuel markets during a severe or prolonged emergency, to do so quickly in order to protect the services that are critical for the well-being of citizens and the continuation of economic activity, including the generation of electricity.

For those reasons, I do not propose to accept the amendment.

Darren O'Rourke (Meath East, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State for the detailed and considered response. On that basis, I will withdraw the amendment with leave for further consideration and perhaps introduce it or something related on Report Stage.

Brian Leddin (Limerick City, Green Party)
Link to this: Individually | In context | Oireachtas source

Amendment No. 2 is ruled out of order and will not be discussed.