Pat Rabbitte (Dublin South West, Labour)

I thank Senators for their contributions. As Senator Daly noted, this is not a controversial Bill although it owes its origins to the Corrib controversy. My ministerial predecessors, Noel Dempsey and Eamon Ryan, were concerned about the issues that arose regarding safety and the framework that was put in place as a result is in keeping with best international practice. Irrespective of the other issues people may wish to raise with regard to Corrib, nobody can argue that the State has not gone out of its way to cover every possible base in terms of ensuring safety.

The Bill will, of course, apply to other projects, including Kinsale, where drilling is carried out whether onshore or offshore. In regard to value for money and Senator Barrett's question about the €5 million, this figure is not from the top of our heads. It is the regulator's estimate of what it will require to meet its obligations under the statutory regulations. I acknowledge Senator Barrett's remark about fudging the distinction between current and capital expenditure but the proposed measure will not impose a charge on the Exchequer. It is not unusual for a regulator to impose a levy on the industry. The measure is cost neutral for the Exchequer but the levy can only be worked out after the process of consultation has been completed. The document was published and the submissions and responses are being considered by the regulator. I can only answer questions about the duration of the pay back in the context of whatever regime is ultimately put in place.

I do not know the difference in cost between sourcing the funds through the NTMA and conventional financial institutions. It will definitely be cheaper, although the precise cost will depend on when the application is made and processed. It will also be quicker. It is the easiest way to facilitate a body like this given that it will recoup its costs.

Senator Sheahan asked about the impact of the levy on Shannon LNG. He referred to local media reports about the possibility that the company may pull out. Such a decision would have nothing to do with this Bill. I do not know whether the company is withdrawing and, in any event, it is not here. Along with my colleague, the Minister for Arts, Heritage and the Gaeltacht, Deputy Deenihan, I have devoted considerable efforts to encouraging the LNG project at Tarbert and we are anxious to see it proceed because it will provide an additional limb to our energy security policies. The company will be coming into a regulatory environment which may be different to that which its parent company is accustomed to in the United States but it is broadly in keeping with the regulatory systems applied in Europe. The regulator is seized of the issue. I had hoped we would have a decision by the end of this month, but I do not know whether that will now happen. However, I am assured that it will not take much longer than this. I cannot see this as a reason for alarm about the future of the project. When I met representatives of the parent company, they were looking for certainty and the earliest decision possible. They did not object to being subject to the regulatory environment like any other company which comes here. While accepting that the regulator operates at arm's length from us, we have encouraged giving the LNG plant the earliest possible attention because of the importance the Government attaches to it. We want it to be located at Tarbert, not just for the employment it would bring but also for the contribution it would make to the country's energy security. I assure Senator Sheahan in that respect. We are actively looking at the matter and I hope the regulator will make a decision soon. It is important for me to emphasise that when this House passed the legislation to establish the regulator's office, it ensured the office would be independent. If colleagues have views on how the regulatory system should function, I will be happy to discuss the matter at any time. As the law stands, however, the regulator is independent.

I would like to refer to a note given to me since I came to the House. It relates to remarks made this morning by a Member of the House, Senator Rónán Mullen. I am appalled by the remarks attributed to him. He took the opportunity-----