Dáil debates

Wednesday, 14 February 2007

3:00 pm

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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Question 76: To ask the Minister for Communications, Marine and Natural Resources his proposals for the early delivery of products from the Corrib gas field; and if he will make a statement on the matter. [5406/07]

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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While first gas from the Corrib field had initially been expected in early 2004, I understand the developer now anticipates first gas in late 2009. Completion of the development works by the developers is clearly the principal factor that will determine the date for first gas. As I have pointed out to the House on numerous occasions, my statutory responsibilities in this matter relate to the regulatory aspects of petroleum exploration and development. I again emphasise that all the required statutory approvals are in place in this regard.

Following the publication of the Cassells report, however, the developer of the Corrib project confirmed that it is actively considering a possible re-routing of the onshore section of the pipeline. In the event that a significant re-routing is proposed, the developer would be required to make an application to my Department for a new approval under section 40 of the Gas Act 1976.

I am highly conscious of the strategic importance of the Corrib gas project, and I look forward to the development works moving ahead and the production of gas from the Corrib field.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Having regard to the importance of developing our natural resources to the optimum and the equal importance of ensuring we retain or regain some degree of independence in the provision of a vital resource such as gas, what lessons have been learned in regard to the planning, preparation and implementation of an operation such as this? Will the Minister indicate what plans he has to change the method of the administration of this proposal to ensure, in future, that any such proposal will be dealt with effectively, efficiently and in keeping with best practice and rules? We must not display to the world a lethargy or ineptitude in dealing with a major investment application such as this, involving the exploitation of what is a relatively clean fuel which will be hugely beneficial to the public and industry. Will the Minister agree that when a proposal like this arises in the future, he will guarantee that it is implemented when anticipated rather than five or seven years later?

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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It does not matter who occupies my position; there is a wonderful system of laws and judicial reviews in this State to protect the rights of citizens. There is no way that anybody can offer a definitive prediction of how long it might take to bring a project like this ashore in future.

Several developments have arisen since this project started moving, not least of which is the new planning and development Bill which will streamline the planning process for projects of national importance. Moreover, it was impossible not to learn lessons as we moved through the long and protracted process of bringing the gas onshore. Several reports were compiled in regard to the Corrib project, the Advantica report being the most notable. Some reports were internal to the Department, while external advice was sought in other cases. All those recommendations will form part of the agreed processes not only for this project but also for future projects. This should help to allay some of the concerns in regard to safety and so on.

This project had to secure six consents and permissions under six different Acts, including the Continental Shelf Act, Foreshore Act, Gas Act, Planning and Development Acts and Environmental Protection Agency Act. This is not an efficient or transparent procedure and it gives rise to the problems we have encountered. Preliminary work has already started in the Department to examine, based on the advice received during the course of this project, how we can minimise the numbers of consents and permissions required under different Acts. This is not an attempt to diminish the amount of work that must be done to obtain those consents. Rather than having six separate processes, however, they should be combined and streamlined under the provisions of one or two Acts. Lessons were learned during this process.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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The Minister sounds like someone who expects we will have more significant gas and oil finds.

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I hope so.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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He did not seem to have that view several months ago and was, in comparison, rather negative about the prospect. How will this process operate in terms of the Planning and Development (Strategic Infrastructure) Act and the functions of An Bord Pleanála? In regard to the revised pipeline route, will the companies go straight to An Bord Pleanála, under the provisions of that Act, in terms of the planning that is required?

Like the Minister, I have ongoing contacts with the parties involved, including Shell, Statoil and the Shell to Sea campaign. There are ongoing concerns about the siting of the terminal. Does the Minister see any possibility that the terminal could be moved seaward, which would finally resolve the issue and ensure the gas comes ashore in 2009, which is what we all want? As energy spokespersons, we know it is desperately needed.

Constituents and citizens throughout the State to whom I have spoken are interested in the immediate issue but are also concerned with the broader issue of licensing terms in respect of our natural resources. Under pressure from members of the Opposition, the Minister appointed Indecon to look at the licensing terms and conditions for the major exploration companies. Will he ensure that report is given to the House before the general election? If it is, will he introduce legislation? For example, does he have any plans to amend the Finance Bill to give the country, or the people, better terms because under the Minister's licensing arrangements, when companies discover gas or oil, it is theirs and this nation, effectively, gets nothing? The people are profoundly interested in that issue which the Minister could address even at this late stage in the Government's term in office. When will Indecon report?

I understand summer 2007 will be a busy season for exploration on the Atlantic margin despite the Minister's downplaying of it in earlier years.

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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Deputy Broughan has a very selective memory. Just because one thinks things does not make them true. Rather than call his utterances lies, I will say he put a number of mistakes on the record. He made a number of mistakes in his assertions in regard to this matter. I started the process of the licensing review at least 12 to 15 months ago.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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The Minister never told us.

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I do not have to tell the Deputy everything.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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It was a secret.

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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It is up to the Deputy to ask the question and to find out.

Deputy Broughan referred to my terms. We have been operating under these terms since 1992 when his party was in Government——

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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The Taoiseach was Minister for Finance.

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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——and his colleague, Deputy Stagg, was Minister of State in the Department of Energy with responsibility for energy for two years. He never even opened the file on the terms and conditions.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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He was not allowed. The Taoiseach kept it in the local office.

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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If the Deputy wants to say Deputy Stagg was an incompetent Minister of State, he can do so.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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I am not saying that; the Minister is.

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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I beg to differ with the Deputy. If Deputy Stagg was not capable of opening a file in two and a half years, I can only take one interpretation from that.

In recent years, there has been very little drilling off the west coast. The number of wells over that period has averaged two. What has changed over the past 12 to 18 months is that the price of oil and gas has increased substantially. Over a longer period the technical skills and technical equipment used to detect, and perhaps indicate, seismic data, etc., have improved, so we are more optimistic.

For approximately two and a half years, my Department has been preparing a report on the potential off the west coast. There is a difference between potential and gas actually coming in. Some people must spend a great deal of money before potential income becomes actual income. Yesterday I read in a newspaper that somebody believes the Corrib gas field is now worth €30 billion. I hope that person is right. Like Deputy Broughan, the person who fed the story to the newspaper has his facts wrong. If that was the case and the gas find in Corrib was worth €30 billion, the people would get a return of approximately €7 billion on that gas field.

The report has not been finalised, although there is a draft. As soon as I receive it and it has been considered, I will bring it to Government. Then it will be made public.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Can we debate it?

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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It will be available to everybody and it might debunk some of the nonsense being spoken by people even further to the left of Deputy Broughan — if he is on the left; but we will leave that for another day.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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There is only the Taoiseach; the original socialist.

Photo of Noel DempseyNoel Dempsey (Meath, Fianna Fail)
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On the siting of a terminal and the possibility of total agreement on it, it is a matter for the Corrib project developers as to whether they wish to move that. If they do, they will have to go through a full planning process which they did before.