Éamon Ó Cuív (Galway West, Fianna Fail)
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Question 1: To ask the Minister for Communications; Energy and Natural Resources if he intends issuing offshore oil and gas exploration licences in the near future on foot of submissions received by him in 2011; and if he will make a statement on the matter. [23962/11]

Pat Rabbitte (Dublin South West, Labour)
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The 2011 Atlantic margin licensing round was formally launched in October 2010 and the closing date for applications was the end of May this year. The 2011 licensing round was different from previous licensing rounds in that the authorisations on offer are for two-year licensing options and not for the traditional 15 or 16 year frontier exploration licences. Fifteen applications were received under the round and my Department has now concluded its evaluation of the applications received. I will make a decision on the granting of licensing options over the next week or so.

There has been a good deal of debate of late on the possible potential of Ireland's indigenous oil and gas resources. While there has been a modest increase in the number of exploration authorisations in recent years, the overall level of exploration activity has remained stubbornly low. This is particularly true of exploration drilling with an average of only two exploration wells a year being drilled over the past decade.

Companies that are offered licensing options under the 2011 licensing round will have to undertake work programmes agreed with my Department. These work programmes, which will principally involve desktop studies, will then inform decisions to be made two years from now, as to whether these companies will actually apply for exploration licences with a view to then potentially moving towards exploration drilling.

Éamon Ó Cuív (Galway West, Fianna Fail)
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The Minister is no doubt aware that the Oireachtas committee intends to investigate the whole regime under which licences are granted. Is it his intention to await the conclusion of the report of the committee before issuing these licences in order that we get public agreement in regard to the terms of these licences. There is great concern in regard to this matter, some of it stirred by the Minister's party when in opposition. The Government when in opposition and when it came into office spoke about new politics and putting the Oireachtas first. Is the Minister willing to wait until the Oireachtas, through its committee, reports on this issue before issuing these licences?

Pat Rabbitte (Dublin South West, Labour)
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As I told the Oireachtas committee concerned last evening, I am more than willing to engage with it for as long as is necessary to review this issue but I am not prepared to delay the current licensing round that has its origins in the changes made in the Finance Act 2008 which Deputy Ó Cuív had the opportunity, when in Cabinet, to approve. I do not wish to delay that as it would introduce a note of uncertainty in a situation which has been disappointing in recent years. On average, fewer than two holes per annum have been drilled over the past decade. At that level of exploration and drilling, it is like trying to find a needle in a haystack. The purpose and motivation of the Government is to increase exploration activity offshore and to explore whether some of the resources we hope are there exist. The strike rate over the past 40 years has been disappointing. In terms of energy security and so on, it is very important we have success and I hope we will.

Éamon Ó Cuív (Galway West, Fianna Fail)
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I am delighted the Minister is now convinced the terms we set in 2008 are the correct ones but he did not believe that when in opposition. As he knows, the disquiet which his party tried to build up when in opposition is fairly pervasive among the public. It seems the Minister is putting short-term expediency ahead of long-term certainty. Will he confirm that if these licences are issued and if an Oireachtas committee subsequently recommends changes, if oil or gas was found, the licences would be under the 2008 terms and that it would not be possible to change those terms in the future?

Pat Rabbitte (Dublin South West, Labour)
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I did not make any comment good, bad or indifferent approving or disapproving of the Finance Act 2008. Deputy Ó Cuív was bruiting this about throughout the summer and it is about time he produced some quote from me to that effect.

Éamon Ó Cuív (Galway West, Fianna Fail)
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The Minister's party did.

Pat Rabbitte (Dublin South West, Labour)
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I did not do it. That is the first point.

Éamon Ó Cuív (Galway West, Fianna Fail)
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The Minister's party did.

Pat Rabbitte (Dublin South West, Labour)
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The second point is that there is nothing preventing - the former Minister, Deputy Ó Cuív, understands this well - the Minister for Finance of the day addressing the fiscal regime in any area of the economy which he or she believes appropriate at any time. That applies to this regime as well. That is the competence of the Minister for Finance and it is untrammelled.

It is important, now that the evaluation is concluding in my Department, that I get on with the authorisation of this licensing round. It is for a relatively small area, 6%, of the Atlantic margin. Let the Oireachtas committee take what evidence it wishes from whomsoever it wishes and for as long as it likes, and then let it come to conclusions. However, that will take a considerable length of time in my opinion.

Éamon Ó Cuív (Galway West, Fianna Fail)
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Will the Minister recommend that the Minister for Finance change the tax terms for the Corrib regime, since he said that they could be changed at any time?

Michael Kitt (Galway East, Fianna Fail)
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I am sorry Deputy but we are out of time. I am calling the Minister to reply to Deputy Martin Ferris on Question No. 2.