Seanad debates

Thursday, 28 January 2010

Petroleum (Exploration and Extraction) Safety Bill 2010: Second Stage

 

11:00 am

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)

I am pleased to reply to what were varied and useful contributions from the floor of this House. I will not address every detail because we can return to these matters on Committee and Report Stages. Regarding Senator Donohoe's point, I stand by the decision to use statutory powers, as has been done before, to appoint a person as commissioner. This gives a particular mix to the commission. There was much thinking behind the decision to give a mix of administrative, economic and industry experience. This has been done in a timely manner as needed. I am confident this will lead to the continuing success of the commission. It has been in place for ten years, it is working well and is working closely with the Government where appropriate but independently for certain decisions it must make. It must also follow the broad policy thrust set by the Government within the European context. We are starting to get the pillars of energy policy in place and we are starting to get people across the sectors in the utility companies, the regulatory systems, Departments and in our political system saying the same thing, that efficiency and renewables will make us progress. This is what I am working on, on a team basis, with the Opposition and other agencies to protect this country and provide security and safety. I am confident the new commissioner and the existing commissioners will work together to achieve that.

I am glad of the detailed analysis Senator Donohoe has undertaken for the Bill and the five areas he suggests we should examine. We can return to this on Committee Stage to examine specifics to ensure safety comes first and is well delivered. I thank Deputy Brady for his sense and sensibility, for his continuing support for my role in government and for providing a commitment to get this legislation through the House. Senators O'Malley and Norris referred to the need to be quick, to be seen to be effective and to do business in an effective manner. I appreciate the support in this regard.

I listened with interest to Senators O'Toole and O'Malley reporting from their visits to Belmullet to examine the glass refining facility and the other facilities built. I was not aware of their itinerary. Senator O'Toole referred to 1 million man hours worked without any injuries. If I was given a hammer and a spanner I would hate to count the number of injuries I would inflict if I was able to clock up 1 million man hours. That is an important measure and it is important we are specific, that people in this industry are careful and that it is safe. We are dealing with materials that require such a level of detail and environmental and safety care. It is correct that demanding and exacting standards are our measure.

Senator Ó Brolcháin's contribution was particularly useful. It is important we get the perspective of what it is like to be in a small boat surrounded by naval vessels and Garda vessels. That conditions people's thinking and is a safety aspect we must get right. The more we scale down policing to an appropriate level, the safer the situation. We must be careful in our security and policing arrangements that we do not scale up to the point where we transgress proper safety measures. In the process set up by myself and the Minister for Community, Rural and Gaeltacht Affairs we have heard submissions from the appropriate authorities to examine the standards and operation of independent security companies so that we have a check on this. We also had a presentation from the Garda Commissioner to hear his experience of the nature of the complaints the Garda Síochána received and the process it is going through to examine such complaints. This is right and fair. It is correct that this should be centre stage in our thinking as well as the safety of the pipeline. Senators Ó Brolcháin and Norris pointed out that the concerns of the local community have brought this issue up the agenda and led to this legislation. I acknowledge the point made in this regard.

I agree with Senator Norris that our terms were too generous and needed to be improved. The Government did that in August 2007. If we compare ourselves with countries in the Atlantic that do not have the North Sea resources of Norway and the UK, such as Newfoundland, Greenland, Spain, France or Iceland, our terms are more analogous to these. They are not at the lower end or the higher end but they are in the ballpark. That we are not getting massive amounts of exploration activity here indicates the deal is not a giveaway. The terms are not excessively generous.

I disagree with Senator Norris in respect of policy in Venezuela and Russia where terms were changed and deals were changed in respect of tax arrangements. The Government made a decision that this was not something we could do because it calls into question other aspects of the State tax system. The Government took a decision that we are different and that if we commit to something and issue a licence, we will seek to maintain the terms and live out our part of the deal. However, if circumstances change and we find extensive reserves in the deep Atlantic waters, we will intelligently reconsider the terms of the offer. We should continually examine the terms we offer and that is what I have done in government.

Senator O'Malley made a point about the existing safety regime. That exists within the Department and includes detailed assessment processes, the technical advisory group and the safety measures that are implemented. This Bill builds on it, makes it specific and gives the commission a role with a detailed legislative form. That is an important and progressive step which will offer people the certainty and security they need.

Senator Burke referred to Ballyglass Harbour. I agree with Senator O'Malley that Belmullet is booming as a result of the Corrib development. However, the Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív, and I have been concentrating on local concerns, even including the parish of Kilcommon which is distant from Belmullet. We have to be attentive to the views of the people most affected by such developments. The Minister, Deputy Ó Cuív, has been working on a number of initiatives aimed at ensuring local communities benefit from the project.

I raise the broader issue of energy security. We are fortunate because gas prices are relatively low and, according to the prognosis of the International Energy Agency, will remain so for the next few years. However, a rational analysis of Ireland's gas supply would reveal a significant security risk. The North Sea gas fields on which we depend for as much as 90% of our supplies are rapidly depleting and will not be available to us in ten years' time. Our second largest supply source off the coast of Norway is limited. Ultimately, we will have to rely on distant Russian and Algerian fields or liquefied natural gas, in addition to what we can produce here.

Energy security involves long-term investment decisions in respect of both gas and oil, in which respect a peak in production is about to occur. As one of the most oil dependent countries in the world, we must prepare decades in advance if we are to continue to run the economy, feed ourselves and maintain our transport system. The best way we can ensure security of supply is by developing our own resources. Fossil fuels will play a role but climate change limitations mean they cannot be our main response. A grid connection is being constructed in the sea to the west of Belmullet because we have the world's richest wave energy resources. If we can crack the technology, we will ensure our long-term security. We must also use our finite energy resources wisely because the fossil fuels we use were stored for 100 million years and will not be available to us again.

First and foremost, however, we have to deliver our energy resources safely. That is the purpose of the Bill and I look forward to debating it further on Committee Stage.

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