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

Dublin Bay North is part of my new constituency and Howth is a very important part of my new area. I will defend and stand up for the fishermen and the fishing industry in Howth. I will also strongly support those involved in tourism and the leisure industry which have significant potential and which have been neglected by this Government. We need to stand up and attract more investment and regard places like Howth as a national resource and a national treasure. Many people are concerned about the damage and suffering inflicted by the European Union on the fishing industry. Part of my remit will be to stand up for that issue because it is all linked into the debate on Ireland being an island economy which needs strong voices both in the Oireachtas and in Europe.

I refer to the Ocean Wealth conference held today in Dublin Castle at which the Minister for Communications, Energy and Natural Resources, Deputy Pat Rabbitte, spoke on the subject of our natural resources. He announced a new tax regime for offshore petroleum exploration. I was optimistic that he had listened to many colleagues like Deputy Richard Boyd Barrett and Deputy Joe Higgins about the massive wealth in our seas and the opportunity to tax offshore exploration. International experts in the sector, Wood Mackenzie, were engaged to provide that advice. I question whether he has got the best international advice available. The Minister stated there will be no retroactive change to the fiscal terms applying to existing exploration authorisations. Does this mean he is leaving it as it is? This Government is looking to make cuts of €2 billion yet we have valuable resources offshore which could be put to use in order take the pressure off the disabled and those with medical cards and off the State.

The principal recommendations made by Wood Mackenzie are that for now, Ireland should maintain a concession system, with industry rather than the State bearing the risk associated with investing in exploration. In the future a form of production profit tax should continue to apply in Ireland, but for discoveries made under future licences the form of this tax should be revised. The tax should be charged on a field-by-field basis with the rate varying according to the profitability of the field and charged on each field’s net profits. The report recommends that the revised tax should include a minimum payment at a rate of 5% which would function like a royalty and would result in the State receiving a share of revenue in every year that a field is selling production. A red light warning goes on in my head when I read the figures. The report recommends that the revised tax rates should be higher than the profit resource rent tax currently in place, thereby ensuring a higher share for the State from the most profitable fields. This would result in a maximum rate of 55% applying in the case of new licences, compared with a maximum rate of 40% under the current fiscal regime. The corporation tax rate applying to petroleum production should remain at 25%. I highlight these issues because we have huge potential in our natural resources and we cannot allow the multinationals and the big oil companies to play poker with our resources and abuse people in this State and get away with murder, literally.

National colours is another way of talking about the flag that a ship has to fly for identification purposes. For Irish ships, the national colours are the national flag. There are some narrow exceptions, where the Minister outlines either an alternative or additional flag for State-owned ships, specified types of ships. A group or body can apply for a special design of flag, via an application to the Minister for a flag warrant. As stated, national colours are used as identification. As such, there are times in which the national colours must be hoisted. If not hoisted, the master of the ship commits an offence and is liable to a fine of up to €5,000. I refer to the reaction to the publication of this legislation. The Irish Sailing Association welcomed the publication of the Bill, stating that the ISA has long campaigned for a statutory register for recreational craft as required. I welcome this provision. The goal of the Department of Transport, Tourism and Sport is to progress and update an enhanced national maritime legislative code for the Irish maritime administration. Under the current ship registration regime, ships wholly owned by an Irish citizen or an Irish corporate are obliged to register unless the ship is exempt from the requirement to register.

Exemptions include ships not exceeding 15 net register tonnes burden employed solely in navigation on the rivers, canals, lakes or coasts of Ireland, Great Britain, the Channel Islands and the Isle of Man; ships acquired before the date of the passing of the 1955 Act; ships in respect of which the Minister has, under section 21 of the 1955 Act, consented to registry under the law of another country; ships owned by Irish citizens not ordinarily resident in the State; and a sea-fishing boat of less than 15 m. in length overall and required to be registered in the Register of Fishing Boats maintained under section 74 of the Sea-Fisheries and Maritime Jurisdiction Act 2006 or which is exempt from such registration by regulations under section 76.

These provisions also deal with fishing boats. I commend all those involved in the Irish fishing industry. It is important to highlight this sector because our natural resources offer great potential to develop the country. Our seas hold natural resources other than fish, notably natural gas and oil reserves, and these could be of great assistance in the current economic circumstances. We must ensure we secure the maximum gains from these assets, which are frequently forgotten, as are the people who work in the oil and gas industries.

I urge the Minister to consider the points I have made and focus on the significant potential offered by ships, boats and sailing. In addition to leisure, we have a large commercial and industrial base which offers significant potential to generate additional taxation revenue. This is a sensible Bill. We must keep our eyes on the ball when dealing with broader issues related to ships, sea-fishing and sailing.

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