Fahey rejects calls for offshore exploration review

The new Minister for the Marine and Natural Resources Mr Fahey has rejected calls for a review of the fiscal terms under which offshore exploration is taking place off the west coast. He has described the demand for such a review as "codswallop" and "beano stuff".

Should the appraisal work being conducted by Enterprise Oil on the Corrib field yield the first of number of new gas finds, however, the Government would "certainly have a very different perspective". It would "demand a much better deal", the Minister said in an interview with The Irish Times.

Support for a review has come recently from the Irish Small and Medium Enterprise (ISME) association, on foot of SIPTU's campaign for same, and from several opposition politicians. Last year the Western People newspaper initiated a public campaign to ensure the region would benefit from any gas find.

"The reality is that nobody is queueing up to go out there with the pretty treacherous conditions that exist," the Minister says - clearly impatient with such demands. "Even after giving the attractive package that we did in 1992, it is still very limited."

"We have the details now on the number of wells bored and it was necessary to give that kind of arrangement," the Minister emphasised." Otherwise we wouldn't have the gas landed ashore at all. We can't renegotiate the contract. We are glad to honour it."

The Minister discounts claims made by SIPTU's offshore oil and gas committee that the physical challenge is no longer so difficult or expensive, given the technological advances. "The fact of the matter is that a deal had to be done to get those people out there in the first place. It is easy to have hindsight on these matters."

The fiscal terms are similar to those offered by Britain, he adds.

However he does want to ensure that Irish goods, services and employment are used at all stages of development, where possible.

"I am not concerned about the location of a service base, as it is a question of each port competing for the business," he says.

He denies that he has made any special promises in relation to Rossaveal, Galway's fishing port - already the subject of a study carried out by Udaras na Gaeltachta on the need for a deepwater berth.

"The strategic study I have commissioned recently on Rossaveal relates to extra landing facilities and increased berthing for the fishing fleet and ferry traffic," he says. "This is not a parochial matter though it is in my constituency. Every other port has been developed and there is a clear need for such development there.

"In relation to a service port, it is up to Enterprise Oil - and nobody else - as to decide where it can source its business most competitively," he says. "That means that Irish operators must be more competitive than their Scottish counterparts."

However, he says he would like to see Mayo benefit. He has welcomed Enterprise Oil's recent commitment to bring the gas ashore on the Mayo coastline.

Just over a month in office, the Minister has already notched up considerable mileage along the coastline - indicating that he is as energetic as his predecessor, Dr Michael Woods. It could be a hard act to follow; fishing industry organisations were united in their praise for Dr Woods, with Mr Joey Murrin of the Killybegs Fishermen's Organisation (KFO) describing him as probably the best marine minister ever.

Most of Dr Woods's predecessors - all 13 of them - were "best forgotten" Mr Murrin added last month in one of his characteristically wry public statements when he also criticised the media for portraying the marine portfolio as the "last position left for any politician" during the Cabinet re-shuffle.

Mr Fahey is a coastal TD representing Galway West, but admits to coming from a farming perspective. "Before I came into this department I had the same preconception as many - and I was wrong," he emphasises.

Already he says he has been very impressed by the extent of energy and commitment within the marine sector and the potential for the future. He believes that his department - which is expected to be censured by an Oireachtas committee shortly for its poor customer service - has been struggling with insufficient resources.

"I'd contrast my perception with the excitement that Mr Haughey had when he first set up a marine department," he says. "He was so enthused about the potential and yet it was as if it never grew into a boy. One reason may be that it came from a number of disparate areas and was never given the manpower resources or awarded the strategic view that it should have," he says.

"It has been a regulatory authority rather than a development authority - fire brigade action by a very brilliant but small number of civil servants over the years. That may be why there is a poor relationship with consumers. I intend to improve on that."

One of the Minister's priorities on taking office is preparation of a strong case for the forthcoming EU Common Fisheries Policy (CFP) review. A task force has already been working under the chairmanship of ex-IDA chief Mr Padraic White and the whitefish fleet renewal programme initiated by his predecessor - allowing for new buildings in the fleet for the first time in 15 years - had instilled some confidence in a beleaguered sector.

Describing the CFP as "the black hole" the Minister says that the review in 2002 is "the biggest challenge facing us".

"No one is under any illusions. It is the one area where we didn't do well on joining the EU. It is going to be extremely difficult to renegotiate but we will be extremely well prepared and we will be putting a professional case together."

He indicates that he intends to strengthen the negotiating team in advance. "We have been extremely good at finding our way in Brussels in other areas and I would like to adopt a similar strategy here."

The Minister had also made a commitment to pushing the case at international level for extending Ireland's seabed frontiers in relation to mineral resources.

However, he is doing so at a time when the responsibility for that maritime area has been effectively shelved by the White Paper on Defence. The paper downgrades the Naval Service's role - with up to half the fleet consigned to fishery protection only.

Does his policy conflict with that of his cabinet colleague, the Minister for Defence Mr Smith?

"I am a solid supporter of the Naval Service and Air Corps, but the reality is that the taxpayer has to get value for money, he says. "Old habits and prejudices of a lifetime" have to be "put to one side", he says, citing the "efficiency" mantra - particularly in his area of responsibility, fisheries control and search and rescue.

"At the same time I think they are an exceptionally good bunch of people and they need to be given their head and given the equipment and resources to get on with the job."

The Minister has already indicated a commitment to renewable energy and recently published a discussion document on wind and save electricity generation. It also examines the foreshore aspects and requirements in relation to development of sea-based wind farm installations.

"The reason that I am enthused is due to the wonderful work that is being done by the Marine Institute," says Mr Fahey. "It is due to its foresight and the work with Harland & Wolff of Belfast to produce the world's first wave energy converter that we are at the leading edge in terms of technology. And there is the added north-south dimension to that."

On wind energy, the Minister says he is concerned about environmental aspects. "Rather than make any decisions, I have decided to throw it out for debate. There will be a very transparent approach and a number of companies have already applied for site investigation licences offshore."