Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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59. To ask the Minister for Communications, Energy and Natural Resources when he will carry out a review of the fiscal terms of petroleum licencing here; and if he will make a statement on the matter. [26711/13]

Pat Rabbitte (Dublin South West, Labour)
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At the commencement of the Dáil debate on the report of the former Joint Committee on Communications, Natural Resources and Agriculture on offshore oil and gas exploration, and in deference to the work of the joint committee, I outlined my intention to seek independent expert advice on the fitness for purpose of Ireland’s current oil and gas exploration fiscal terms. I also said I proposed to listen to the views of Deputies through the course of the debate before initiating the process of seeking such expert advice. I believe such expert advice should focus on the level of fiscal gain that is achievable for the State and its citizens and the mechanisms best suited to produce such a gain. Certainty regarding fiscal terms is a prerequisite to attracting oil and gas exploration investment to Ireland with a view to establishing the true oil and gas potential of the Irish offshore. In that regard, and particularly in the context of planning for the next licensing round, I intend to bring my consideration of this matter to a conclusion before the end of this year. That will ensure the next licensing round can be launched against a backdrop of regulatory certainty and thereby encourage much needed new investment in exploration in our offshore.

Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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I will be brief because I know the Leas-Cheann Comhairle is under pressure. I welcome the Minister's decision to open a review of the fiscal terms of petroleum licensing in Ireland. I think we need to get away from setting the terms of production before exploration has been done. I do not think there needs to be an intrinsic link between one and the other. The terms of production should be set when we know what is there to be produced. The cost of exploring Irish waters should be written off over 15, 23 or 25 years - it should not be an upfront cost that has to be recouped to the companies before this nation takes in 1 cent in revenue. I assume the Minister will accept submissions from interested parties as part of all the work that is going on.

Pat Rabbitte (Dublin South West, Labour)
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I will begin by responding to what the Deputy has said about "interested parties". The Oireachtas committee spent six or seven months on this issue and prepared a report. I am taking the recommendations in the report as the basis of the way to go forward. The entire thrust of policy is to generate more offshore economic activity and increase the offshore exploration rate. We need certainty for that reason. Up to now, we have simply not attracted the level of economic activity one would expect. The expectations of the early 1970s have not been realised. We have not had an oil find. As I said in response to Deputy Boyd Barrett earlier, I find it difficult to understand why I am accused of giving away our oil, given that we have not found any yet.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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What about Barryroe?

Timmy Dooley (Clare, Fianna Fail)
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There would be no putting up with the Minister if we found oil.

Finian McGrath (Dublin North Central, Independent)
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The Minister is a gas man.

Pat Rabbitte (Dublin South West, Labour)
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If it is considered that our fiscal terms are a giveaway, I ask Deputy Colreavy to explain why our coastline is not black with ships exploring the Irish offshore. If our tax regime is so favourable to those who engage in prospecting and exploring, why is that work not under way? We have been drilling less than two wells per annum, on average, for the last dozen years. At that rate of drilling, it is like looking for a needle in a haystack.

Timmy Dooley (Clare, Fianna Fail)
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It is a shocking record.

Finian McGrath (Dublin North Central, Independent)
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The Minister needs to up his game.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Has the Minister not heard about Barryroe?

Pat Rabbitte (Dublin South West, Labour)
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We do not have the State investment for a State exploration company. Therefore, we have to attract companies that can carry out such work. For that reason, we have to pitch the fiscal regime broadly in line with the situation in similar member states. There is no point in comparing apples with oranges. There is no comparison between this country and Norway, which has a particularly different geological structure and a hit rate of approximately one in four. Since the early 1970s, we have had four gas finds and no oil finds. I hope the signals from Barryroe continue to be encouraging as they are at the moment. Another couple of wells will have to be drilled before we know for sure whether it is commercially viable - whether the oil that is undoubtedly there is commercially extractable.

Finian McGrath (Dublin North Central, Independent)
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We have to get it shovel-ready.