Clare Daly (Dublin North, United Left) | Oireachtas source

What is going on is best summed up by Wood MacKenzie in its undoubtedly expensive report, paid for by us, which states that the recommended system will greatly improve the "perception" of the fiscal terms. It is largely the perception rather than the reality which is being addressed. Mr. Terence Conway from Shell to Sea summed it up accurately when he stated:

As could be expected from a company so closely linked with the oil industry, the Wood Mackenzie report still recommends continuing to give the oil companies control over and the vast majority of the profits from whatever oil and gas is found. The State will still take no share in production and will have no control over what happens to our oil and gas, whether it is landed in Ireland or supplied to the Irish market.

That really is the essence, as although the report has 11 recommendations, some were just put in to fill a bit of space because they are already in place. There is a critical absence as the proposed changes are not retrospective. The best areas for which licences have already been awarded will continue to be subjected to the very same terms which have been so clearly exposed in the eyes of citizens, thanks largely to the work of campaigners like Shell to Sea. These terms have resulted in a €100 billion giveaway of oil and gas resources, with appalling treachery carried out by Mr. Ray Burke when he abolished royalties and reduced returns, as well as Mr. Bertie Ahern afterwards when he reduced the tax rate for the profits made from the sale of resources to 25%. As other Deputies note, companies have been allowed to write off 100% of costs before they have to declare any profits to be taxed at the paltry rates.

In 2008, a fiscal study of 45 international companies indicated that Ireland had the lowest returns at half the rate of the US and UK and less than a third of Norway. This arrangement will not change this result as the natural resources owned by the people of this country were given away by Fianna Fáil to be bought back by citizens at ever increasing prices determined by the market. The flaw in the proposal is that it is utterly reliant on private companies to deliver, which is short-sighted and will inevitably lead to the Irish people being the losers. Even if exploration was facilitated and led to a trickle of returns, it will not transform the economy. This is our gas and oil and it is a bitter irony that the Norwegian people, through the state oil company, Statoil, will benefit from our gas resources more than any Irish person. It is regrettable that there is no vision from the Government on this issue.

Why not cut out the middle man? We agree that a State-owned oil company would not have the resources to explore the potential but why not link directly with another state oil company, such as that owned by the Norwegian Government? If that company can be approached directly we could see what exploration methods could bring benefits. What about other countries with control over their own oil resources? The Russian oil company, for example, has demonstrated some innovative techniques so why not approach it and see what expertise we could develop? We should cut out the middle men or the multinationals and examine some of the benefits delivered by the Venezuelan Government taking more control over its oil resources. That is being used to make a real difference in the lives of ordinary people. What is being proposed with this report is that a few extra crumbs will be handed over in lieu of our resources. In that sense we are considering the matter very much the wrong way around.

Parts of this country have communities under siege, where an Garda Síochána has been turned over to essentially become private security agents of a multinational company to keep people intimidated in their homes. Communities are divided with a bitter legacy and for what? Irish people will gain practically nothing from the Corrib experience other than that bitter legacy. Considering the potential that could have been realised, it is a wasted opportunity, and I am sad to say this arrangement will not alter the issue in any significant way. I absolutely echo the points made by Deputy Colreavy about learning lessons and ensuring that there will be no fracking on these shores.

See this speech in context