Bernard Durkan (Kildare North, Fine Gael)
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Question 7: To ask the Minister for Communications; Energy and Natural Resources when he expects gas from the Corrib gas field to become available to the Irish consumer; the extent to which the product will replace the use of imported energy on an annual basis when supplies become available nationally; the degree to which the supply is expected to represent as a percentage total gas use; if all the necessary steps have been taken in terms of compliance with all statutory regulations in order to ensure the earliest possible availability; if he expects the product to be competitively priced on the Irish market; the extent to which he expects this to contribute to economic recovery; and if he will make a statement on the matter. [35716/12]

Pat Rabbitte (Dublin South West, Labour)
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The Corrib gas field will strengthen Ireland's security of energy supply and at peak production will provide approximately 60% of Ireland's annual gas needs. Completion of the Corrib field development works by the developer is the principal factor that will determine the date for first gas. Pending such completion, it is not possible to definitely state when gas from the Corrib field will become available. The developer is in receipt of all statutory permits relevant to the construction of the Corrib gas project. Works on all elements of the development, with the exception of the onshore element of the Corrib pipeline, are essentially complete. Works in this regard commenced in July 2011 and oversight of them is being undertaken by the appropriate authorities - Mayo County Council, the Department of the Environment, Community and Local Government and my Department - in the context of their respective consents. It is estimated that construction of the onshore section of the pipeline, which includes a 5 km tunnel, which began last year, will take approximately three years. First gas cannot, therefore, reasonably be anticipated before 2014.

With regard to how competitive the price of Corrib Gas is expected to be, Deputy Durkan should note that developers of new sources of gas price their supplies in keeping with the competitive nature of the market. I have no statutory function in the setting of the price of gas. Responsibility for the regulation of the gas market is a matter for the Commission for Energy Regulation, which is an independent statutory body.

In terms of the contribution the development in question will make to economic recovery, as already alluded to, it can be expected that Corrib gas will improve security of gas supply. This is of economic importance in light of Ireland's widespread use of natural gas, including for a significant element of energy generation. In addition, Deputy Durkan may be aware that profits from petroleum production arising from exploration licences granted prior to 2007 are taxed at a rate of 25%. This is the rate that will apply in the case of profits from the Corrib field.

Bernard Durkan (Kildare North, Fine Gael)
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I thank the Minister for his comprehensive reply. Have any lessons been learned from what occurred in respect of this project, particularly in light of its extraordinarily long duration? Is the Minister in a position to indicate what might be expected in the future if further finds occur? The procedures followed in respect of the Corrib gas project were extremely circuitous. Has a new or better way of bringing gas to the market much more quickly been identified? In the context of the statutory and safety requirements - I presume all of these have been complied with - is there anything that can be learned from the process to date which might be of economic benefit to both the Minister's Department and the country in the future?

Pat Rabbitte (Dublin South West, Labour)
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I published a major Government policy statement yesterday on the delivery of energy infrastructure. A significant part of what is envisaged in this regard involves setting down principles of both community engagement and community gain. Both of those principles are equally relevant in this case. At the beginning of the Corrib project, a good relationship was fostered with the local community. It appears, however, that, under the new arrangement, the company took its eye off the ball and issues that were raised in respect of safety were not handled in as sensitive a fashion as might have been the case. Of course, we have moved on a great deal since then. The State has bent over backwards to ensure, in so far as is humanly possible, that there are no safety concerns. The campaign that emerged has moved from safety concerns to entirely different preoccupations. It has been damaging to the country's international reputation. Deputy Durkan is correct that the industry and the Government must learn lessons from the experience at Corrib. The greatest concern is that, in circumstances where the country has been drilling one hole or two holes on average every year, the impact may be to deter companies from exploration and drilling off our shore and that is not in the best economic interests of the country. Lessons can be learned and I hope we have learned them.

Bernard Durkan (Kildare North, Fine Gael)
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How does the process followed in this jurisdiction compare with competing jurisdictions in terms of the procedure, compliance and the delay between the initial exploration and the final outcome?

Pat Rabbitte (Dublin South West, Labour)
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Compared to similar circumstances, it took approximately three times as long to bring it ashore in this jurisdiction from discovery of the field to the likely date of 2014. That is not justifiable because a great deal of cost can be written down by the company, a great deal of tax is forgone by the State and a huge bill is incurred by the State in providing security in the form of the Garda Síochána in particular. It does not bear favourable comparison with the international experience but I would also like to think it is a once-off. The experience at Kinsale, for example, is quite different. To go back to Deputy Durkan's original question, I hope lessons have been learned.