John Browne (Wexford, Fianna Fail)

I am a socialist; I do not know about him.

The Fuels (Control of Supplies) Acts 1971 and 1982 were put in place to safeguard the supply and distribution of oil in an emergency. They provide for significant State intervention in the market in the event of a major oil supply crisis. Under this legislation, the Government may make an order authorising the Minister for Communications, Marine and Natural Resources to intervene where the Government is of the opinion that the exigencies of the common good necessitate the regulation or control by the Minister on behalf of the State of the acquisition, supply, distribution or marketing of fuels held by private sector oil companies.

Once the Government order is made, the Minister is empowered to make an order or orders in respect of certain fuel or fuels. This means that, in effect, the stocks held by the oil companies in the Whitegate refinery in Cork become part of the totality of the emergency stocks under the Minister's control and direction. Detailed provisions in the order give the Minister, for example, powers to regulate the sale of individual products so as to prevent hoarding or unnecessary topping up of fuel tanks by setting out minimum and probably maximum sales of particular products, especially petrol. Other provisions in the legislation include the imposition of demand restraints such as restricted opening hours for filling stations and restrictions on non-essential motoring — for example, a ban on Sunday driving.

In regard to Deputy Broughan's question on the EU, as a member of the IEA, Ireland would participate in and benefit from the IEA mechanisms designed to deal solely with physical shortages. In the first instance, if there was to be disruption in supplies, the IEA has an initial response plan originally developed in the wake of 11 September 2001 to provide for a limited and co-ordinated release of emergency stocks. If launched, this plan could be rapidly implemented in Ireland by means of joint action involving NORA and the industry. If the situation were to deteriorate, more intensive activity, stock and-or demand restraint would come into play while a 7% reduction in global oil supplies would trigger, for the first time ever, the implementation of the full panoply of the IEA measures, including the sharing of any available stocks according to an agreed formula. The theory underlining the IEA approach is that the emergency reserves would be eked out over an extended period to supplement supplies which would be available in the normal course even in emergency situations.

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