Jerry Cowley (Mayo, Independent)

I thank the Minister for his detailed reply. I welcome the review of the fiscal terms and I am glad the Private Members' motion tabled by the Technical Group was instrumental in this happening.

However, it will only be when 50% of the Corrib gas field has been exploited that the company will have to pay 1 cent in tax. Given the 100% capital write off, it will be light years before tax is paid. In the meantime, significant funding is needed for hospital beds and so on. A licence was granted to Tony O'Reilly's companies, Providence Resources and Sosina Exploration, in November 2004. They, in turn, sold it to Exxon Mobil while retaining a 20% stake but Exxon Mobil is paying all the exploration costs, which are estimated at hundreds of millions of euro, before anything is found. It would have been much more equitable if the Exchequer had received this money. This leaves a dirty taste in every person's mouth in the context of the Corrib gas project because such funding could have been targeted at the local community. In County Donegal, an Irish company, Grianan, states it will give 10% of gross profits to the local community. It would be wonderful if 20% of gross profits resulting from exploration went to the local community affected. It would also act as an incentive. Will the Minister consider it?

I am on record as seeking a 50% stake in any oil or gas discovery for the State, including royalties. Sounds emanating from Providence Resources and Sosina Exploration suggest they have great hopes that much more gas will be found. It would be a shame not to be able to take advantage of such a situation. Both Norway and the community on the Shetlands have done well from exploration. Why should we always be the poor relation? Will the Minister comment on whether the local community should benefit?

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