Finian McGrath (Dublin North Central, Independent) | Oireachtas source

That is what this debate should be about. If we do not create jobs, we cannot raise taxes, we cannot provide services for those with disabilities, we cannot provide educational services and we cannot provide decent hospital services. That is linked into this debate.

I do not know whether the Minister has been following the debate about Scottish independence in recent weeks, but the big issue on their agenda is the use and value of their natural resources. This is something that we should watch carefully in the debate in this country. I wish the Scottish people well and I hope they vote for independence.

We must look at the facts of what is going on in this country in relation to gas and our natural resources. Generations of Irish schoolchildren have learned that Ireland lacks valuable natural resources. However, Ireland's offshore territory of 652,000 square kilometres is nine times larger than Ireland itself. Recent Government and industry data as well as discoveries by oil companies indicate the potential for vast reserves of oil and gas under the seabed. That is the reality and anybody who says it is not true is playing games.

According to a 2006 study for the Government, the Atlantic Margin alone, off the west coast, contains potential reserves of the equivalent of 10 billion barrels of oil in the form of oil or gas. At June 2012 prices, this is worth €750 billion. This estimate does not include the areas off Ireland's south and east coasts, where several valuable discoveries have been made, nor does it include Ireland's onshore resources. The Minister should note that figure. It is accurate. There is €750 billion worth of oil and gas below the Irish seabed around the coast of this country. That could do a great deal for the future of this country. It could do a great deal for the economy and it could do a great deal to create jobs. It could do a great deal in providing services for persons with disabilities. In the past three years the Government has ripped €12 million out of St. Michael's House services, and we heard from parents over the summer whose services and transport, and also day-care services, were being reduced. I raise this in the debate tonight because it is important that we say it. We are always fighting over €2 million, €12 million or €3 million, when according to Government figures we are sitting on top of an asset worth €750 billion. That is the reality.

Unfortunately, the sad reality is that the terms under which companies are granted permission to explore for these hydrocarbons are so heavily weighted in favour of oil companies that the benefit to Ireland is almost non-existent. The terms were introduced 20 years ago following heavy lobbying of the Haughey Government by the oil industry. Under these terms, when a company finds oil or gas in Irish territory, ownership and control of that oil or gas is transferred in full to the company; no royalties are paid to the State; the company can choose to export the oil or gas; it does not have to land the resources in Ireland or use Irish services or personnel; even if the company decides to sell in Ireland, the full current international price will be recovered from the consumer; and Ireland has no ability to limit extraction in light of the link between fossil fuels and climate change. The only guaranteed benefit to Ireland from extraction of these resources is a 25% corporation tax on the profits declared from the sale of the oil or gas. Before declaring profits, the company can write off 100% of costs against this tax, including the cost of previous unsuccessful wells drilled anywhere in Irish waters. Following changes in 2007, in exceptional cases a very large field could incur an additional tax of between 5% and 15% on post-tax profits. However, this does not apply to the many licences granted before 2007. International studies show that State take in Ireland is among the lowest, roughly half the rate of countries with a similar economic approach. These are facts that are not being discussed today.

The Minister, Deputy Rabbitte, is now in this zone. He is a senior Minister in the Cabinet and a member of the Labour Party. Have we not learned from the sell-off of Telecom Éireann, which was a complete disaster? Have we not learned that neoliberalism did not work in this country? The Minister should ask the former Progressive Democrats Minister, Michael McDowell, whether it worked for the country.

People have major concerns about this legislation. They have major concerns about loss of services and loss of revenue. Above all, however, as I stated earlier, they have major concerns about the only game in town in this country today - that is, jobs, jobs and jobs - and that is what this debate is linked into. I mentioned the link between jobs and services, but I am also making the link between jobs and the gas issue and the broader debate.

Bord Gáis Éireann is a major energy provider, supplying gas and electricity to homes and businesses throughout the island of Ireland. Established in 1976, it is majority owned by the Government through the Minister for Finance and the Minister for Communications, Energy and Natural Resources. Bord Gáis Energy is a division of the Bord Gáis Group, operating in both the South of Ireland and the North. It is a dual-fuel, all-island business that services 825,000 gas and electricity customers. I am one of those customers and I am a regular supporter of the company. I like the idea that it is an all-island company providing services throughout the island because I believe strongly that we need to get rid of the partitionist mentality, which exists in this House as well.

Even if people do not agree with the beliefs of the 1916 leaders, there are strong economic reasons to end the division of the country.

The Bill addresses legislative amendments to allow for and facilitate the sale of Bord Gáis Energy, the retail arm of Bord Gáis which sells gas and electricity to all market segments and performs related activities. The Bill also provides for the restructuring of BGE in order to establish a gas networks subsidiary company which will remain in State ownership. This is to be welcomed. In addition, it changes the ministerial ownership and control provisions for Bord Gáis Energy.

The sale of Bord Gáis Energy is part of the Government's State assets disposal programme and being pursued as a commitment under the EU-IMF programme. The Government announced its intention to sell Bord Gáis Energy in February 2012 and the sale process was formally launched by BGE on 3 May 2013. It is expected that the sale will be concluded by the end of the year. This is the Government's policy.

I refer to the value of the sale. Reports anticipate that the sale could generate proceeds in the region of between €1 billion and €1.5 billion. I do not believe that figure is possible in the current economic climate. Some more recent estimates have been towards the lower end of that scale and I agree. We need to be careful when dealing with the sale of a very valuable asset. It has been stated half of the sale proceeds will be available to fund employment enhancing projects of a commercial nature, with the other half destined eventually to pay down the debt that is swallowing and ruining the country.

I welcome the debate. I urge the Minister to beware of fire sales of our national assets because it is a dangerous road to go down.

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