asked the Minister for Industry and Commerce the consideration, if any, given to the idea of making Lough Swilly, County Donegal a duty-free port; and if he will make a statement on the matter.

While no specific consideration has been given to the question of making Lough Swilly a duty-free port, the general question of duty-free zones has been considered in the context of industrial development policy. However, our membership of the EEC has reduced substantially the validity of the duty-free zone concept and I am satisfied that from the industrial development point of view we would have nothing to gain from the establishment of a duty-free port at Lough Swilly.

From what the Parliamentary Secretary has said it would appear that no consideration has been given to this matter. I ask him to bring to the notice of the Minister the fact that this is one of the finest natural harbours in Europe, if not in the world, a harbour not requiring any dredging or other work of an on-going cost nature and that in the context not only of the EEC but of international shipping, the duty-free element be considered rather than having merely an agreement between the countries of the community.

I understand that in regard to materials from third countries for export to member states and to EFTA, the common customs duties must be levied irrespective of whether the industries concerned are located in a duty-free zone. Materials imported from third countries for processing and re-export to third countries may be imported free of duty under bond but there is a detailed Community procedure—directive 69/73— which involves custom supervision at all stages irrespective of whether the industry is located in a duty-free zone. Therefore, it seems that the concept of a duty-free zone has not the validity it had prior to our membership of the EEC.

Will the Parliamentary Secretary agree to have the matter examined fully and will he keep in mind that the transatlantic, international, trans-shipping value of this harbour is a factor that must be kept in mind at all stages and that the matter be not related only to agreements between the Nine?

Each of the facts I mentioned in my reply would apply to a considerable degree to what the Deputy has said but I shall have the matter examined further.

15.

asked the Minister for Industry and Commerce if he is aware of any proposal to construct an oil refinery on the shores of Lough Swilly, County Donegal.

I am not aware of any current proposals to construct an oil refinery on the shores of Lough Swilly.

Is the Minister aware that land in the area of the Inishowen Peninsula is being sought in large quantities at, perhaps, an enhanced value in terms of agricultural use but at a value much below its potential for industrial use? Is the Parliamentary Secretary not aware of plans by some international combine related to the oil industry who have been buying up a route for a pipeline from this area for the purpose of piping into a processing plant the potential oil that may be found off the north-west coast?

Neither the Department nor the IDA are aware of any active proposal to construct an oil refinery at Lough Swilly.

Nobody knows who these people are.

In 1973 there was a proposal to build a refinery at Fort Lenan on Lough Swilly. The site proposed was State property under the control of the Minister for Finance. In May 1973 preliminary discussions took place between promoters of the project and representatives of the IDA as well as the OPW, the Departments of Local Government and Transport and Power. However, no progress was made following these discussions and the promoters did not pursue the matter. Donegal County Council have indicated that no planning application was made to them at any stage in respect of the proposed refinery or of any other refinery or oil-related project on Lough Swilly.

Will the Parliamentary Secretary convey to the Minister our concern as to the activities of these unknown persons and that they not be allowed to buy up land which may be most valuable in the not too distant future?

I agree with the Deputy that the concern of the people in the area should be set at rest and I trust that the information I have given to the House will be of assistance in the matter.