Enda Kenny (Mayo, Fine Gael) | Oireachtas source

I am not sure how Deputy Boyd Barrett determined there are 180 billion barrels of oil to be found. There is a great deal the Government can do for the country in this regard. In the regime that applied previously, contracts were drawn up between the State and exploration companies to determine whether finds were real and commercial and should be developed. One of the major finds, off Kinsale, has been in operation for many years and has come almost to the end of its capacity, while for the past 13 years the development process of bringing ashore the gas from the Corrib field has continued.

I spoke this week to the Norwegian Prime Minister, who made the point that by a law laid down many years ago Norway has never spent any of the money arising from North Sea oil or gas but has put the entirety into a national pension fund, now worth more than €500 billion. None the less, Norway is a high-tax country, as Deputy Boyd Barrett is aware. In letting out the exploration blocs, the Minister for Communications, Energy and Natural Resources, Deputy Rabbitte, is determining the interest level of companies that wish to explore options. The technology has changed and if it is possible to determine whether there are finds of oil or gas it follows that environmental sensitivities must be taken into account. There must be exceptional licensing requirements and a determination of whether there is value in following up the development of the kind of well that may be there.

As the Deputy is aware, the State, via the Government, can make a judgment in respect of determining the value to the State of any find. That issue is central to the Minister's policy in this regard. First must come the development of interest from commercial operations to explore and determine whether there are finds that should be developed and, if so, in what circumstances. This can make an impact on our economy in the future.

I am not in a position to alter contracts that were signed years ago between the State and companies in respect of gas finds or whatever. It is important and in everybody's interest that where blocs are let out for exploration the licence to explore can be used or lost, and if there are finds or reservoirs, we must examine very carefully in what circumstances and capacity, and to what value to our country, these should be developed.

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