Michael Finucane (Fine Gael)

I welcome the Minister of State's statement which outlines the latest developments in regard to the Corrib onshore pipeline. Although it is quite a distance from Rossport, a public meeting on the issue was recently held in Newcastle West in County Limerick. The families of the Rossport men were represented and Dr. Mark Garavan, spokesman for the Shell to Sea campaign, spoke at length. It was an informative session and indicated how this issue has resonated with the public in that it seems a manifestation of the small man taking on a major multinational. Speakers at the meeting drew our attention to the unfavourable publicity for Shell some years ago in regard to its activities in the Ogoni region of Nigeria. It is ironic that the same company is involved in this controversy in which five people were imprisoned as a result of their stance on the proposed onshore pipeline. The action they took was a consequence of their genuine concerns.

Recent events have exposed many deficiencies within the system in handling projects such as this. Previous experience, such as that in regard to the Kinsale gas find, should have meant the Department of Communications, Marine and Natural Resources had the benefit of considerable knowledge and resources in handling this matter. However, it is only now that real consultation is taking place, with the announcement of a two-day public hearing on 12 and 13 October in Mayo. The safety review outlined by the Minister of State means we are at least responding to the issues of concern to residents and the wider public. In Norway, where there is much experience of the exploitation of gas and oil deposits, consultation with local people always takes place in advance. Why did such consultation not take place prior to the decision on the Corrib onshore pipeline? If the concerns of local people had been heeded, we would not have had the situation where five people were imprisoned for more than 90 days in defence of their rights.

More is required than the verbal reassurances from Shell and Statoil that the onshore pipeline is safe. I hope the safety consultants appointed by the Minister will be able to give adequate reassurances in this regard. One assumes they will take into account well known incidents where pipelines have exploded, such as at Flixborough in England and outside Brussels. We should bear in mind that the pipeline at Corrib will take a maximum pressure of 345 bar. There has been much media attention on the Shell to Sea campaign. It is surprising that the pipeline will run inland for 9 km from the refinery terminal. Why can it not be constructed closer to the shoreline?

There are concerns in regard to the sale of 400 acres to Shell by Coillte in 1999. This sale did not take place in the context of a competitive tendering process and it is this land which allowed Shell to follow through its plans to operate the terminal inland. It is the 9 km from the shore through which the pipeline will pass that is causing the most concern. Questions about the sale of this land were raised at last week's informative meeting of the Joint Committee on Communications, Marine and Natural Resources at which the Minister, Deputy Noel Dempsey, learned at first hand the strength of the Opposition's views and concerns on this issue. What payment did Coillte receive for these 400 acres? Why was there no tendering procedure? These are questions that must be answered. The sale of this land in 1999 created the framework for the establishment of the Corrib onshore pipeline.

It is inevitable that the publicity and media interest surrounding this issue should focus public attention on the terms and conditions of the State's agreement with Shell and the regulatory regime that is in place. Many commentators have observed that by winning no royalties or other concessions in regard to the exploitation of this valuable natural resource, the State has not got a good return for this project. The Minister reassures us by saying there has been no rush of developers anxious to become involved in exploiting our natural resources. We are also reminded of the obstacles preventing a direct State involvement in such activities, including the fact that wells may cost €20 million or €30 million and so on. However, the public is concerned by the apparent lack of benefit for the State in the exploitation of the Corrib gas field.

I appreciate the concerns of people in the region in regard to this project. The proposed creation of 35 jobs seems a small return for a project that is causing so much concern, particularly in regard to the safety of residents. I wonder what would be the reaction if, for example, the gas was brought to shore and put into the national grid to create electricity. In such a scenario, there would be a perception that Mayo and other areas in the west were benefitting from such activity and that a worthwhile project had been undertaken.

Everybody must welcome the release of the Rossport five. This allows some breathing space for discussions to take place in regard to ensuring the concerns they have expressed are teased out and allayed. It is to be hoped that the outcome of both the two day hearing and the safety report will succeed in this regard. These men are regarded as heroes within their community and beyond because of the stance they have taken on the issue. Much quiet diplomacy is taking place but there are concerns about certain approaches adopted by the former Minister for the Marine and Natural Resources, Deputy Fahey, on the matter.

All the parts of the jigsaw puzzle did not appear to have been pieced together at the time. There seemed to be a piecemeal approach to the project which has caused inherent problems more recently. It has created tension and political polarisation because people found it difficult to accept that the courts had certain powers, including the power to imprison people and require them to purge their contempt.

The recent visit of representatives from Mayo to Norway may have been a turning point, particularly given the involvement of Statoil and the fact that a new government is now in power. There seemed to be concern in the Norwegian community about the unfavourable public relations emanating from the project. It focused the Norwegian people's minds on the situation that existed in their own country where there is substantial local consultation on similar projects and local people are key players in advance of a project starting. They were surprised that this did not exist in Ireland. Statoil had a major influence in recent decisions which resulted in the five men being released from prison.

I hope concerns surrounding the project can be allayed and resolved. The last thing we want to happen is that people who continue to believe they have been wronged, notwithstanding the public hearing and safety report, will be imprisoned. I welcome the positive developments that have taken place and wish all the people involved guidance and success in ensuring a successful resolution can take place.

I welcome the fact that within the petroleum affairs division of the Department of Communications, Marine and Natural Resources, which hitherto has been something of a Cinderella division in terms of manpower, resources have been beefed up to provide a more robust approach in the granting of planning permission and to ensure that the correct follow-up action is taken in recognition of the type of situation that arises with oil and gas exploration.