Jerry Cowley (Mayo, Independent)

I have long been upset about the scandalous giveaway of our natural resources. Article 10 of Bunreacht na hÉireann states:

All natural resources, including the air and all forms of potential energy, within the jurisdiction of the Parliament and Government established by this Constitution and all royalties and franchises within that jurisdiction belong to the State subject to all estates and interests therein for the time being lawfully vested in any person or body.

Article 6 of the Constitution states:

All powers of government, legislative, executive and judicial, derive, under God, from the people, whose right it is to designate the rulers of the State and, in final appeal, to decide all questions of national policy, according to the requirements of the common good.

How then is the common good being served by the ongoing and scandalous giveaway of our natural resources by our Government? Is it not time for the people to insist on the exploitation of our own resources for our own benefit because the common good requires it? Will it require a redesignation of the rulers of the State by the people for this to happen?

The State's right to an ownership stake in any oil or gas find has been abolished since 1987. There is also no longer any right to royalties, which were equal to between 8% and 16% of the value of any production, irrespective of the profitability of the development company, and a corporate tax level of 25%, the lowest in the world. This tax liability can be written off by the oil companies against their other activities so that they will pay little or no tax for the privilege of raping Mother Ireland for her natural resources.

It has been estimated that the Corrib gas field will be half exhausted in ten years' time before Shell will have to pay even one cent of tax. Oil prices, however, have increased dramatically in recent years. Since the Corrib gas field was declared commercial, its value has soared. Today a barrel of crude oil is worth a record price of $74.78. We must contemplate the scenario where we will be obliged to pay the same price for our own Corrib gas as we pay for gas which comes from the interconnector, as well as face increased petrol and heating oil costs. Shell will make a killing by forcing us to buy back our own gas at the same price that we pay for imported gas. Given that the imported gas includes higher transport costs, Shell will actually be charging us more for our Corrib gas than a North Sea gas producer will get for its gas.

Is it any wonder the people of Mayo are up in arms about the shenanigans of Shell and its partners when all we are getting is grief and no gain for our county? Despite this the giveaway continues with the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, preparing to license a further area of potentially rich oil and gas prospects on the west coast on the same terms. The oil companies have been invited to cherry-pick from an area of approximately 18,000 sq. km., stretching from west of Clare to due north of the Foyle estuary. It is an area equivalent to about a quarter of the Irish land mass. The Government has been dragged kicking and screaming into consulting the people about this by the EU. It has, however, ensured it is a meaningless consultation process with only nine days' notice — a complete sham.

The full extent of the scandal was highlighted by Colm Rapple when he recently outlined the ExxonMobil saga. Exxon had Irish offshore interests in the 1970s and 1980s but it had not applied for licences in recent years. Had Exxon been interested it undoubtedly would have been granted the licence that was instead issued in November 2004 to Sir Tony O'Reilly's companies, Providence Resources and Sosina Exploration. The US oil giant would have got preference over Tony O'Reilly's company if it had applied at the time. However, because it did not, it is now paying a high price for coming in late. The fact that it is willing to pay that higher price confirms the ridiculousness of the Government's licensing policy.

Providence and Sosina were able to demand a continuing 20% stake in the licence, although ExxonMobil will be paying all exploration costs, estimated to be over €100 million. Had the Minister for Communications, Marine and Natural Resources, Deputy Noel Dempsey, not issued the licence 16 months ago, he could have demanded a 20% stake for the people in any of ExxonMobil's finds. Instead that 20% will go to Providence and Sosina. In the meantime it would be irresponsible for the Minister to issue any more offshore licences until the people are fully consulted about what is going on and agree what they wish to give the oil companies, if anything. That should be the people's prerogative.

A recent report makes clear the Government intends to maintain the present licensing and taxation terms despite the fact that most of the exploratory wells drilled in the Slyne-Erris-Donegal areas have encountered oil and gas. It also indicates a high level of optimism for the future. Under these terms, however, the licensed companies effectively own any gas or oil they find. There is no requirement to land any gas or oil in Ireland. There is nothing to stop an offshore developer from allowing oil to be shipped away in tankers to refineries abroad. So much for the extra security which could come from having crude oil or gas landed in the State.

Where is the logic in the failure to reconsider the offshore licensing terms in light of spiralling energy prices and the recent Forfás report on Ireland's oil dependency which highlights our vulnerability to a looming crisis in liquid energy supplies? Enough is enough. Too much has already been given away to powerful corporate interests. The giveaway 1992 legislation must be scrapped. A realistic tax take must be introduced with royalties and an automatic stake of 50% in any oil or gas discovery. It is time the people demanded what belongs to them.

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