Peter Kelly (Longford-Roscommon, Fianna Fail)

No, Deputy Cowley is not interested in that. He does not have one positive idea. He does nothing except complain and criticise different people and personalities, which is wrong.

The objective of the Bill is to provide for the establishment of the agency on a statutory basis as the agency with responsibility for the holding and maintenance of strategic oil stocks. The National Oil Reserves Agency, NORA, was set up as a subsidiary of the Irish National Petroleum Corporation. In July 2001 the businesses and commercial assets of the INPC — the Whitegate refinery and the Whiddy Island oil terminal — were sold to Tocso Corporation, now ConocoPhillips. NORA did not form part of that transaction. The INPC has no operational capacity since the disposal of its businesses and commercial assets. The company's current activities are limited to finalising residual issues arising from the 2001 transaction and meeting requirements under company law including those arising from its role as parent to the National Oil Reserves Agency. It is considered desirable that NORA should be established on a statutory basis as a private limited company independent of the INPC. The provisions of the Bill will also allow the Department of Communications, Marine and Natural Resources to strengthen corporate governance obligations of the agency.

The Bill provides for the transfer of the share held by the National Petroleum Corporation Limited in the National Oil Reserves Agency to the Minister for Communications, Marine and Natural Resources. It continues in existence the National Oil Reserves Agency. It defines its functions including those relating to oil stockholding obligations. It imposes a levy on relevant disposals of petroleum products and amends the Irish National Petroleum Corporation Limited Act 2001.

The main responsibilities of the oil supply division of the Department of Communications, Marine and Natural are: first, the development and implementation of Ireland's strategic oil supply policy with particular regard to the areas of contingency planning and Ireland's associated international obligations in order to ensure an effective system of security of supply at times of physical oil supply disruption, and second, the exercise of shareholder functions in the Irish National Petroleum Corporation and its subsidiary, the National Oil Reserves Agency, the latter being the body having operational responsibility for maintaining Ireland's strategic oil reserves.

Its strategy objectives are: to devise appropriate structural and resource arrangements for NORA going forward so that national and international oil stockholding requirements can be consistently met, to ensure effective operation of the NORA levy, to conclude and update oil stockholding bilateral agreements with relevant Governments to facilitate cover for NORA stocks held abroad, to participate in formulation of EU and International Energy Agency — IEA — policy, information and decision-making activities regarding oil stockholding contingency issues.

Arising from membership of both the European Union and the International Energy Agency, Ireland has obligations to maintain 90 day reserves of national strategic stocks. The EU requires member states to maintain minimum stocks of 90 days based on inland consumption in the preceding calendar year in three categories: Category I — petrol, Category II — middle distillates — kerosine, jet kerosine, gasoil and diesel — and Category III — fuel oil). The IEA imposes an obligation on member countries to maintain minimum stocks of crude oil equivalent equal to at least 90 days of net imports in the previous calendar year.

Ireland's EU oil stock holding requirement for 2005 — 2006 amounts to 1,870,000 tonnes. Ireland's IEA oil stock holding requirement for 2006 amounts to 2,278,800 tonnes of crude oil equivalent, that is, 2,110,000 tonnes of products, higher than the EU obligation due to differing methods of calculation and different times for changing the year on which the data is based. Ireland is also obliged to maintain contingency plans, including arrangements for the release of national oil reserves to minimise the adverse effects of a major oil shortage within the framework of a co-ordinated international response. On 1 February 2006, Ireland's oil stock reserves were estimated at 100 days net imports. This comprised 32 days held in Ireland by the National Oil Reserve Agency, NORA, 33 days also held in the State by oil companies and oil consumers, with the balance of 36 days held abroad by NORA or on its behalf. While the Minister is satisfied that the level of stocks held by Ireland is fully in line with international obligations, he is mindful of the desirability of incrementally increasing the volume of NORA stocks held in Ireland, having regard to storage availability and value for money.

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