Tommy Broughan (Dublin North East, Labour)

The Minister, Deputy Noel Dempsey, told us last autumn that he was considering re-examining the licensing terms for our oil and gas reserves. We have not heard a word from him since. During the earlier discussion today, I thought we should do an audit of how much taxpayers' money the Minister, Deputy Noel Dempsey, has lost. I mentioned the voting machines and the climate levies. Perhaps we also have serious possible losses to the Exchequer from his dilatory behaviour on these licences.

I welcome the five licences to which the Minister of State referred. Looking at our frontier territory, I notice that two thirds of the blocks in the north-west have yet to be awarded. As any oil and gas found belongs to companies which only pay 25% corporation tax, it leads to the possibility of grave losses for this country. The companies do not even have to land the oil here. The 1992 licensing terms are extremely generous.

Approximately one year ago, the Minister gave Providence Resources and Sosina Exploration an exclusive licence to explore and exploit the so-called "Dunquin" area off the south-west coast. The great Dr. — or Sir — A. J. F. O'Reilly has a 7% interest in those companies, which one of his journalists estimated may now be worth €20 billion. Those companies simply transferred 80% share in the licence to ExxonMobil. Why could the Minister, Deputy Dempsey, not have done that? Why could he not have made an arrangement from the start to get the maximum possible benefit for the people with the larger exploration company?

The real point of the Slyne-Erris concession is that once again we are sleep-walking and giving away vital resources and reserves from the people. I brought forward a Bill on behalf of the Labour Party, which would include an annual report to Parliament, such as the climate report requested by our Green Party colleagues, to keep terms constantly under review.

My great predecessor, Justin Keating, instituted a much fairer regime in the 1970s, which the Minister of State's Government and predecessors wrecked and left us in the helpless free-for-all situation we now have. It is time we had urgent reform of Irish offshore licensing in the best interests of the country. This week Forfás stated we have a dangerous oil dependency, are addicted to oil and the country is vulnerable until our renewable energy sources are brought up to scratch. We must take care of our indigenous resources.

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