Pat O'Neill (Fine Gael)

We know it is his pet hate. As a member of the Joint Committee on Communications, Natural Resources and Agriculture, which was responsible for drawing up this report, I am delighted to have the opportunity to speak on this issue today, as I participated in the discussions that led to its publication. Offshore oil and gas exploration has become a more topical issue in recent years owing to activities around our coastline, including the recent work that I hope has led to the discovery of an oilfield. I am relieved that offshore exploration remains somewhat uncharted territory for two reasons. First, the Constitution vests ownership of all natural resources in the State which is in the driving seat and sets the criteria for exploration and tax regimes. It has a heavy responsibility in ensuring licences are awarded in a transparent way that prioritises the common good. Under other regimes, too often decisions were taken for the wrong reasons and, as the late Seamus Brennan put it, matters were worked out on the back of an envelope. The people are fearful of what gas and oil exploration means for them. They are sometimes distrustful of politicians and fear that vested interests will win the day. Everywhere they can see examples of inappropriate projects being given the green light because of nod and wink politics.

The most controversial part of the Minister's contribution relates to the tax regime. He mentioned that the proposed changes to the regime were not of a minor or modest nature. I am one of those who drew up the report and went through it in detail. It proposes four tax bands. The larger the find, the more profitable it is and the higher the tax paid. The proposal depends on profit ratios. The Government's approach differs from that of its predecessors, in that it prioritises transparency and accountability. For this reason, the committee's report was important. It was produced by a democratically elected group representing the full spectrum of opinion within the Oireachtas. Informed by consultation with many relevant groups, the report takes account of a carefully considered range of factors. It also makes a clear recommendation on the need for greater public consultation. We need an informed public debate. Oireachtas Members have a responsibility to inform themselves on these matters, given the potential economic and environmental importance of offshore oil and gas exploration to the State.

My second reason for welcoming the report is that for the first time it brings these issues to the forefront of Government decision making. We will look to some of our neighbours to determine best practice. As the Minister and other Senators have stated, the committee studied the position in Norway and Portugal, with particular emphasis on fiscal regimes. It has identified Norway which has a more developed offshore sector than Portugal as a model for how the exploration industry can be managed to a country's best advantage. We are fortunate that we can learn from our Nordic neighbours in this regard and I urge the Minister to take full advantage of the Norwegian experience.

I emphasise the need to build public trust and confidence in this area. The committee has recommended that the Minister establish a forum of key stakeholders through which a policy on offshore exploration could be devised to ensure Ireland's hydrocarbon resources are maximised for the benefit of the people. We do not need another situation similar to that in respect of the Corrib gas field. Policy formulation and licensing must be characterised by transparency and informed discussion. I wish the Minister well in this important work.