Michael Colreavy (Sligo-North Leitrim, Sinn Fein) | Oireachtas source

While it is true that the actual amount of oil and gas brought ashore has been small, these reserves exist. Currently, little gas and no oil is being extracted from Irish waters. This does not reflect the potential of Ireland's reserves. Companies that discover oil or gas in Irish territory are not obliged to supply these resources to the Irish market. Also, our licensing terms are so weighted in the industry's favour, they do not require the companies to bring a single drop of this oil or gas ashore in Ireland. Ireland's licensing terms do not ensure fuel security for the country. When the Government awards oil and gas companies with a licence, ownership and control of Irish oil and gas is transferred to that company. Under the current licensing terms, the Government cannot guarantee that the oil and gas will be sold to the Irish market, that it will be landed in Ireland or that the companies will employ Irish people. Irish consumers must pay the international price for oil and gas found off the coast of Ireland. At a time when the world is nearing peak oil production, it is imperative that Ireland secures its fuel supply.

When compared to international standards, Ireland's licensing terms are very generous to oil and gas companies. A report carried out in 2007 by the US Government Accountability Office studied the licensing terms of 142 fiscal systems. It found that among all the countries studied Ireland has the second lowest Government take. In the United States the minimum Government take is 42% and in Norway it is 75%. The Joint Committee on Communications, Natural Resources and Agriculture published a report in May 2012 entitled Offshore Oil and Gas Exploration, in which a number of recommendations were outlined. While the report states: "[R]etrospective changes to fiscal and licensing terms can risk long-term reputational damage...", it also agreed that "[F]uture agreements can reflect policy changes necessitated by significant changes in the policy context and circumstances, for example a large increase in the number of commercially viable finds or the size of fields". The report further states:

The joint committee believes that the overall tax take should, in the case of future of licences, be increased to a minimum of 40%. The tax take should increase from existing levels according to a sliding scale based on the rate of profit (that is to give an overall tax take of 40% for small commercial discoveries, 60% for medium commercial discoveries and 80% for very large discoveries).

Renewable energy also has huge potential to benefit this State. According the Minister for Communications, Energy and Natural Resources, in response to a question I put to him, only 16% of Irish electricity consumers receive their energy from wind sources. Ireland has a lengthy coastline that enables us to develop a large amount of wind energy. However, there is no national strategy in place for the development of wind energy. We talk about a national strategy as if one were in place but there is no national strategy on the use of renewable energy to benefit this country and its people. What we do in this regard is respond to approaches made by different companies who are in it for profit. We need to stand back and to think outside the box on this issue. We need to say what we want from renewable energies that will benefit this country and its people and will improve energy security in Europe.

Our primary focus should be a strategy, the benefit of which is to those who control the resources, namely, the Irish people. We are light years away from this type of strategy and need to develop one fast. We are operating on an ad hoc basis, responding to proposals that are made by people whose only interest in this area is to get as much as they can from it and get out with their profits intact.

We need to take control.

In recent weeks the Government signed a memorandum of understanding with the British Government to supply Britain with a large amount of wind energy. We will pipe our natural resources out of the country. I am not saying this is a bad thing.

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