John Browne (Wexford, Fianna Fail) | Oireachtas source

I welcome the Bill. Although we will support it, my colleague, Deputy Michael Moynihan, will table a couple of amendments that the Minister of State might consider taking on board. We question why it has taken so long for the legislation to be brought before the House. This is last minute dot com, despite the fact that the Government talked about openness, transparency and giving the House every opportunity to have wide-ranging discussions on Bills. The Minister of State mentioned that the Bill needed to be implemented by 19 July, which is not that far away. That does not give us much of an opportunity to debate the Bill fully and table amendments to it.

The offshore safety directive is the European Union's response to offshore accidents. The Deepwater Horizon incident in the Gulf of Mexico happened in April 2010. To date, dealing with it has cost $14 billion. The Minister of State mentioned that, under the Bill, the fine would be €3 million. Given how much has been required to deal with the Deepwater Horizon incident, I am not sure about the amount that has been included in the Bill. Deputy Michael Moynihan will table an amendment on this issue.

It is good that a great deal of petroleum exploration is under way along the coastline. It has taken a number of years to bring the Corrib gas field to fruition. If there is successful exploration, I hope the country will benefit in terms of taxes and employment. However, that is a discussion for another day.

The offshore safety directive provides for the institutional separation of regulatory functions relating to offshore safety and the environment. It is important that the Minister of State clarify one point. The CER is the independent regulatory authority, but how many Departments would be involved in the event that there was a major spillage or accident offshore? There have been incidents. I remember one in County Wexford some time ago. The then Department of the Environment claimed that it was the local authority's problem, while the local authority claimed that it was the Department's. This went on for some time while the seas were being debased with oil. What funding and equipment will be available in the event that there is a major accident? Would we have the resources to deal with it? The Minister of State referred to the European Union coming together to deal with the issue. Will other countries help if there is a major problem in Ireland, England or close to the Irish coastline?

The Bill confers on the CER responsibility for the safety regulation of petroleum exploration and extraction activities, including a requirement for the CER to establish and implement a petroleum safety framework. This framework will be important in dealing with incidents. It should be broadly based and involve as many of the relevant organisations and institutions as possible so as to ensure incidents, of which I hope there will be none, will be dealt with successfully and co-operatively.

The CER is an important body in this field. The Minister of State mentioned that the framework had been designed using best international practice, "with petroleum undertakings required to reduce all safety risks to the internationally accepted level that is as low as is reasonably practicable." Previously, exploration, oil and gas companies took chances and their equipment might not have met the required standards. With the CER, the Minister of State must ensure top standards will be met by those companies operating off the coastline. How often are inspections of their equipment conducted?

A €3 million fine will apply to developers that fail to ensure all petroleum activities are carried out in accordance with their safety management systems and safety permits. That amount is too low. The incident I mentioned by way of example was large, but we do not know what might occur. A €3 million fine might not be a deterrent to the oil exploration companies operating off the coastline. It is a small amount to them in the light of the value of an oil find or their financial wherewithal. The Minister of State should consider whether it can be increased. Will there be further liabilities if costs increase above €3 million? If the cost was €10 million, €15 million or €20 million, would the Government of the day, the CER or the Department carry the can? It is important that the Minister of State clarify this point.

On the establishment of a national competent authority, the Minister of State might outline how the Minister will appoint people to it. It is important that there be people on it with expertise in this field, for example, engineers and scientists, instead of it just being a case of jobs for the boys. The Minister of State might have a few political hacks in County Donegal or the Taoiseach's constituency whom he might want to have in the authority.

It is a very serious issue and this very serious legislation. We have to be serious about the competent authority that will be set up to deal with it.

I welcome the Bill. As I said, Deputy Michael Moynihan will table a couple of amendments which he believes would improve the Bill and the Minister of State might take them on board. Generally, however, we support the Bill.

Before I came into the House many years ago, I worked in the oil industry. A discussion about the cost of diesel and oil is for another day, but the way the oil companies operate leaves a lot to be desired. The price seems to fluctuate and, despite the current position in which the spot price on world markets is low, prices at the pumps for motorists and transport operators have shot up alarmingly in recent months. Some of the price increases are not justified.

The Bill is better late than never, but the Minister of State might explain why it has taken so long to be brought before the House. However, we will support it, notwithstanding the fact that we will be tabling a couple of amendments to it.

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