22 October 1998 Edition
Workers in struggle: Dublin Government spurns gas millions
Picture this scenario. A thriving state owned oil and gas exploration industry pumping millions of barrels of oil and therms of gas into tankers and pipelines, creating thousands of jobs and generating multi million pound profits for the people. Could this really happen in Ireland?
No, this is the Norwegian oil industry. The Dublin Government has given away our offshore oil and gas resources to multinational companies and now some of them will not even employ Irish workers on their drilling rigs.
The real scenario of oil and gas exploration in Ireland is one where foreign exploration companies are on the verge of huge commercial oil and gas finds - finds that will generate multi-million profits and create thousands of jobs.
No Irish jobs
There is a very real prospect that absolutely none of the jobs will be based in Ireland. The revenue take for the Dublin Government will be the lowest of any country with oil resources. There will only be a 25% tax on oil company profits and no royalties for oil and gas sold out of Irish wells. As well as enjoying such a generous tax regime the exploration companies will be able to write off all drilling, labour, research, production and construction costs against tax.
So who is to blame? In 1992 after lobbying from the oil exploration companies the Fianna Fáil/Progressive Democrat coalition conceded the most generous exploration terms to companies who were considering starting deep water tests in Irish territorial waters.
Since 1994 a range of companies have begun to drill in the new deep water license areas. One of these - Enterprise Oil - has been drilling in the Atlantic. In the short space of time that Enterprise Oil have been drilling in Irish waters they have been able to overturn thirty years of employer-union labour agreements.
Hostile Enterprise
Over the last 30 years there has always been a presence of Irish based oil workers on drilling rigs in Irish waters. SIPTU's National Offshore Committee says that there are 900 oil workers in Ireland with the skills and experience needed to work in the oil and gas exploration industry.
SIPTU members told An Phoblacht that Enterprise have had from the outset of operations in Ireland ``an openly hostile attitude to the idea of hiring Irish based rig workers''. Other oil companies have had no problem dealing with Irish based oil rig workers.
In 1997 Enterprise did not have any Irish based workers on a rig drilling in Dublin bay. This summer Enterprise told SIPTU that they would not be hiring any Irish workers for their drilling programme in the Corrib field off North Mayo.
Enterprise claimed that Irish pay rates are too high, that Irish based workers did not have the required certification and that they have lost the necessary work skills through long periods of unemployment. All of these issues have been clearly disproved by SIPTU.
Mind Boggling
There is, it seems, a greater agenda at work. Enterprise have, according to industry sources, struck a gas field off the Mayo cost that could be 20 to 30 times greater than the gas find currently being piped ashore from the Kinsale field.
This find was discovered by Irish workers but will not be exploited by them. One industry source described the source of the newly discovered gas field as ``mind boggling''. Enterprise have claimed that they abandoned the field in 1996 because of mechanical problems. However, Irish Oil workers who were on the rig that discovered the gas deposits said that the breakdown was caused by the size of the gas find Enterprise discovered.
After the debacle where Irish workers were excluded from working on Enterprise's rig during the summer SIPTU has called on the Dublin Government to revoke Enterprise's drilling licenses.
Fianna Fáil Function
An Phoblacht contacted the Department of Marine and Natural Resources. Department spokesperson Denis Maher said that the Department was bound by the provisions of the Maastrict Treaty which allowed free movement of labour across the EU. ``Employment levels are a matter for Enterprise'' said Maher. He also said that the minister Michael Woods understands the position of SIPTU and Enterprise Oil but wasn't prepared to intervene.
Enterprise have refused to attend the Labour Court and Relations Commission to discuss the employment issue. They however did find the time to attend a Fianna Fáil fundraising function at last August's Galway races.
We also asked Maher about the SIPTU workers' concerns about safety regulations on the Enterprise oil rigs. He said the regulations for Irish rigs were among the strictest in the industry.
A SIPTU spokesperson told An Phoblacht that the reality on rigs was very different. Visits from the safety officers were ``well heralded in advance''.
Free Oil and Gas
SIPTU's concerns have widened from those of getting Irish workers on the rigs. They believe the economy as a whole is missing out hugely.
For every offshore job there are up to eight onshore jobs. There can be up to 1,500 workers on some of the larger rigs meaning thousands of onshore jobs supporting these workers. Enterprise have already made clear that the Irish gas find will be run from Scotland.
Joe O'Toole, chairperson of the SIPTU National Offshore Committee told An Phoblacht that ``the Progressive Denmocats wanted a water meter in every house in the country. They then turn around and give gas and oil free to multinationals''.
Sinn Féin's Martin Ferris, who is also a member of the SIPTU offshore committee, told An Phoblacht that this ``is a natural industry that is capable of providing hundreds of jobs. Hundreds of Irish workers are being denied their rights''.
Yesterday in Leinster House Sinn Féin TD Caoimhghín O Caoláin raised the Enterprise Oil issue. He said, ``The British-based Enterprise Oil recently announced the discovery of the highest levels of gas ever recorded in Irish waters. The question arises as to what benefit this discovery will be to the development of the west and the the economy as a whole''.
O Caoláin highlighted the low corporation tax and said ``it is scandalous that successive Irish governments have effectively sold off our natural resources. This huge new find which can be of such benefit to the disadvantged regions and to the entire Irish economy has been placed in the hands of a multinational and we the Irish people are being asked to buy back our own property.
The experience in Ireland is widely different from that in Norway where the government started its own oil company - Statoil - hired its own rigs to drill for oil and charged other compnaies taxes of up to 75% for the right to drill oil and gas. Now they have billions of pounds in oil revenue invested in their domestic economy and thousands of jobs offshore and onshore in Norway. It seems that they read the part of the 1919 Democratic Programme which states ``It shall be our duty to promote the development of the Nation's resources'' The Dublin Government have forgotten this and the line that promises this to be done ``in the interests and for the benefit of the Irish people''.
No, this is the Norwegian oil industry. The Dublin Government has given away our offshore oil and gas resources to multinational companies and now some of them will not even employ Irish workers on their drilling rigs.
The real scenario of oil and gas exploration in Ireland is one where foreign exploration companies are on the verge of huge commercial oil and gas finds - finds that will generate multi-million profits and create thousands of jobs.
No Irish jobs
There is a very real prospect that absolutely none of the jobs will be based in Ireland. The revenue take for the Dublin Government will be the lowest of any country with oil resources. There will only be a 25% tax on oil company profits and no royalties for oil and gas sold out of Irish wells. As well as enjoying such a generous tax regime the exploration companies will be able to write off all drilling, labour, research, production and construction costs against tax.
So who is to blame? In 1992 after lobbying from the oil exploration companies the Fianna Fáil/Progressive Democrat coalition conceded the most generous exploration terms to companies who were considering starting deep water tests in Irish territorial waters.
Since 1994 a range of companies have begun to drill in the new deep water license areas. One of these - Enterprise Oil - has been drilling in the Atlantic. In the short space of time that Enterprise Oil have been drilling in Irish waters they have been able to overturn thirty years of employer-union labour agreements.
Hostile Enterprise
Over the last 30 years there has always been a presence of Irish based oil workers on drilling rigs in Irish waters. SIPTU's National Offshore Committee says that there are 900 oil workers in Ireland with the skills and experience needed to work in the oil and gas exploration industry.
SIPTU members told An Phoblacht that Enterprise have had from the outset of operations in Ireland ``an openly hostile attitude to the idea of hiring Irish based rig workers''. Other oil companies have had no problem dealing with Irish based oil rig workers.
In 1997 Enterprise did not have any Irish based workers on a rig drilling in Dublin bay. This summer Enterprise told SIPTU that they would not be hiring any Irish workers for their drilling programme in the Corrib field off North Mayo.
Enterprise claimed that Irish pay rates are too high, that Irish based workers did not have the required certification and that they have lost the necessary work skills through long periods of unemployment. All of these issues have been clearly disproved by SIPTU.
Mind Boggling
There is, it seems, a greater agenda at work. Enterprise have, according to industry sources, struck a gas field off the Mayo cost that could be 20 to 30 times greater than the gas find currently being piped ashore from the Kinsale field.
This find was discovered by Irish workers but will not be exploited by them. One industry source described the source of the newly discovered gas field as ``mind boggling''. Enterprise have claimed that they abandoned the field in 1996 because of mechanical problems. However, Irish Oil workers who were on the rig that discovered the gas deposits said that the breakdown was caused by the size of the gas find Enterprise discovered.
After the debacle where Irish workers were excluded from working on Enterprise's rig during the summer SIPTU has called on the Dublin Government to revoke Enterprise's drilling licenses.
Fianna Fáil Function
An Phoblacht contacted the Department of Marine and Natural Resources. Department spokesperson Denis Maher said that the Department was bound by the provisions of the Maastrict Treaty which allowed free movement of labour across the EU. ``Employment levels are a matter for Enterprise'' said Maher. He also said that the minister Michael Woods understands the position of SIPTU and Enterprise Oil but wasn't prepared to intervene.
Enterprise have refused to attend the Labour Court and Relations Commission to discuss the employment issue. They however did find the time to attend a Fianna Fáil fundraising function at last August's Galway races.
We also asked Maher about the SIPTU workers' concerns about safety regulations on the Enterprise oil rigs. He said the regulations for Irish rigs were among the strictest in the industry.
A SIPTU spokesperson told An Phoblacht that the reality on rigs was very different. Visits from the safety officers were ``well heralded in advance''.
Free Oil and Gas
SIPTU's concerns have widened from those of getting Irish workers on the rigs. They believe the economy as a whole is missing out hugely.
For every offshore job there are up to eight onshore jobs. There can be up to 1,500 workers on some of the larger rigs meaning thousands of onshore jobs supporting these workers. Enterprise have already made clear that the Irish gas find will be run from Scotland.
Joe O'Toole, chairperson of the SIPTU National Offshore Committee told An Phoblacht that ``the Progressive Denmocats wanted a water meter in every house in the country. They then turn around and give gas and oil free to multinationals''.
Sinn Féin's Martin Ferris, who is also a member of the SIPTU offshore committee, told An Phoblacht that this ``is a natural industry that is capable of providing hundreds of jobs. Hundreds of Irish workers are being denied their rights''.
Yesterday in Leinster House Sinn Féin TD Caoimhghín O Caoláin raised the Enterprise Oil issue. He said, ``The British-based Enterprise Oil recently announced the discovery of the highest levels of gas ever recorded in Irish waters. The question arises as to what benefit this discovery will be to the development of the west and the the economy as a whole''.
O Caoláin highlighted the low corporation tax and said ``it is scandalous that successive Irish governments have effectively sold off our natural resources. This huge new find which can be of such benefit to the disadvantged regions and to the entire Irish economy has been placed in the hands of a multinational and we the Irish people are being asked to buy back our own property.
The experience in Ireland is widely different from that in Norway where the government started its own oil company - Statoil - hired its own rigs to drill for oil and charged other compnaies taxes of up to 75% for the right to drill oil and gas. Now they have billions of pounds in oil revenue invested in their domestic economy and thousands of jobs offshore and onshore in Norway. It seems that they read the part of the 1919 Democratic Programme which states ``It shall be our duty to promote the development of the Nation's resources'' The Dublin Government have forgotten this and the line that promises this to be done ``in the interests and for the benefit of the Irish people''.