Trevor Ó Clochartaigh (Sinn Fein)

Tá céad fáilte roimh an Aire. Fáiltím go mór roimh an tuarascáil seo. Cé nach ball den chomhchoiste mé, shuígh mé isteach le haghaidh cuid mhaith den díospóireacht a bhí ar siúl agus tá suim faoi leith agam sa díospóireacht seo. Cuireann freagra an Aire an-díomá orm, mar gheall ar an meoin atá ann agus mar gheall ar an easpa soiléireachta atá ann maidir lena sheasamh i leith moltaí atá déanta.

I welcome the opportunity to participate in this debate and hope it will form part of a wider debate that will lead to the Government implementing the report's proposals on the taxation of oil and gas profits and its other recommendations. The report was the consequence of the Minister agreeing last year during a debate on my party's Private Members' motion in the Dáil on oil and gas exploration to establish a review. While it does not naturally embody all of Sinn Féin's recommendations for changes to the licensing and review terms governing oil and gas exploration, it goes a considerable distance in that direction. It is highly significant that it won all-party approval at the committee. This proves that, regardless of the sarcastic references during the Dáil debate by some Government Deputies to Sinn Féin's alleged Darby O'Gill economics, most Members came to realise that the current regime was a travesty. Anyone familiar with the current terms will know of the political background to the changes and the role played by the former Minister, Mr. Ray Burke, and others who did not exactly cover themselves in glory in other areas of responsibility. The claim that the changes were made in the best interests of the State and its citizens is no more accurate than the claim that certain planning approvals were granted in the best interests of anyone other than the developers involved and their political cronies.

The report recommends a minimum tax rate of 40%, increasing in certain circumstances to 80%. That would bring the State into line with other states and take us out of the lower range of international oil and gas profit tax rates. There are also recommendations in respect of greater public supervision and involvement in exploration. Unsurprisingly, the companies' response was to claim that any change would act as a disincentive. I was disappointed to note that, yesterday in the Dáil, the Minister appeared to support this line in response to a question. It is true that exploration off of our coast is difficult and costly. As the estimates of the value of what is forecast to be brought ashore from the Corrib gas field prove, however, there are significant payoffs. This explains not only why exploratory drilling continues but also the eagerness with which companies take up licences. This is indicated in the report which states 2011 saw the highest number of licences ever awarded. It was crazy that these licences were issued under the old terms before the Minister had received this report. The companies are not taking up licences for the good of their health. They are doing it because they know that they will make handsome profits. It is not a hobby or charitable undertaking. They have calculated the risk and the investment and have decided that it is worth their while continuing. This confidence has been repaid recently, as exploratory drills have confirmed large deposits in fields off the Dublin and Cork coasts. These finds will bring the companies involved considerable profits. Given that they are extracting natural resources, it is only correct that they be expected to pay a reasonable rate of tax.

My party proposes that the State take a majority 51% share in all finds and establish an exploration company. It is essential that it have the same direct input as other states such as Norway have. The success of the Norwegian state's involvement is illustrated, perhaps ironically, by the fact that Statoil is one of the licensees in the Corrib field. Apart from ensuring the State is directly involved in the extraction of oil and gas, the establishment of such a company would ensure it would have full knowledge of the results of exploratory drills. This is essential, given that anecdotal evidence from people who have worked on rigs suggests the full results of oil and gas finds have not been disclosed. This also suggests that, in some instances, the companies involved have decided to sit on the finds as part of future reserves.

I was disappointed by the Minister's statement. It was waffle and he did not make a major point or give any indication as to where he stood on the recommendations made. The tone of his flippant and dismissive reply is an insult to the work of the committee which spent hours working on the report and its recommendations. His only concrete statement was that he did not wish to be negative or undersell Ireland as a location for exploration investment, but he is underselling Ireland. Is he acting on behalf of citizens or the oil companies? His statement today and previous statements seem to place him on the companies' side.

The report is in line with the opinions of many of the Minister's trade union colleagues in SIPTU which recently published a report on the oil and gas industry. Its recommendations on using the industry to derive benefits and create employment in the State need to be taken on board. Not only should we benefit from the tax regime, but we should also ensure the creation of as much employment as possible in a unionised sense. Security of supply is an issue. From my reading of the licences, there is no such security. The companies could choose not to sell the oil and gas to the State. Where are the Justin Keating principles? Which Minister will stand up for the right of the people to ensure the greatest value for the State is derived from our natural resources? It should not be done to the companies' benefit. They are not out there for the craic; they are there to make significant profits. The Minister is following the line of previous Ministers by siding with the companies as opposed to citizens who have a right to a just reward from the State's natural resources. Beimid ag tacú go hiomlán leis na moltaí agus déanaim comhghairdeas le gach duine den choiste a rinne obair na gcapall ar an tuairisc seo. Tuairisc fhada chuimsitheach atá inti agus feictear dom go bhfuil sé náireach nach an tAire ag tógáil na moltaí ar bord i ndáiríre agus go bhfuil an cur chuige atá aige ag déanamh beag is fiú dóibh ar fad.