David Norris (Independent)

I welcome the Minister. I was very interested in the comments of my colleague from Sinn Féin who has reservations about the Minister's position. I would probably share some of them.

I will go back to the beginning. My interest in the issue was first sparked by the Keating principles. That was a long time ago, in 1975, when I was beginning to get interested in politics. I knew Mr. Justin Keating who was the son of the great painter Seán Keating. He was a man of incisive intellect. He was a vet and an academic. He also had a strong commitment to the social values of the country and the constitutional notion that the wealth of the country should belong initially to the people. I know my colleague, Senator Trevor Ó Clochartaigh, mentioned the Keating principles, but it is worth putting more flesh on them.

The first substantial legislation on the use of Ireland's oil and gas reserves was introduced in 1975 by Mr. Justin Keating during the term of office of a Fine Gael-Labour Party coalition Government. He was part of the Labour Party element. It was modelled on international best practice to ensure the people would benefit substantially from their own oil and gas reserves. Under the legislation, the State could acquire a 50% stake by right of viable oil and gas reserves discovered. In addition, production royalties at a rate of between 8% and 16% and corporation tax at a rate of 50% would accrue. In exceptional cases the 16% rate could be increased. The legislation also attempted to prevent the energy companies from sitting on exploration licences by specifying that they should begin drilling within three years of the date of issue of an exploration licence. I take it, or I hope, the Minister supports this and perhaps he might indicate his attitude towards the Keating principles which seem extremely fair.

In our experience of exploration we have got into bed with some very peculiar people, although they are powerful and large, buying publicity all over the place. I am speaking about companies such as Shell. I dissociated myself from and ceased my subscription to National Geographic - a wonderful publication - when it was bought by Shell for propaganda purposes and to show that it was environmentally clean, etc. We will not ever forget what the company has been doing and continues to do in Nigeria or the dangerous situations it has provoked all over the world. There was a murky case in which the company admitted complicity in the murder of Ken Saro-Wiwa and fined. These companies need much governance.

I accept that there is a judicious balance to be struck because until recently this was a marginal area and there was a problem in attracting companies with the necessary wealth to engage in highly technical deep water drilling. The rewards potentially are enormous. I compliment Senator Pat O'Neill and Deputy Andrew Doyle for producing this report which contains much information. The potential can only be realised if we understand the level of exploration required. There are potential reserves of 10 billion barrels-of-oil equivalent in the Irish Atlantic margin. I know it may be difficult to get at it, but technology is increasing in its sophistication, such that reserves that were inaccessible years ago are now well within economic range. Oil prices are also continuing to rise; therefore, what might not have been commercially exploitable ten years ago is now most certainly commercially exploitable because we have the technology available.

I have sympathy for the people involved in Shell to Sea, although attempts were made to discredit them by argumentum ad hominem, or looking at the people they mixed with. I was warned that I was associating myself with Eirigí, etc. but I am not scared by this if the idea is right. It is as simple as that. It is clear that we have much potential in our position. Looking at the map, we have an enormous segment of the Atlantic shelf. We are concerned with oil and gas exploration, but there are many other elements that can be taken into consideration. The scientific unit in Galway, with the two research ships, is doing an enormous amount of extremely valuable work in understanding how these elements could be used to the benefit of the people. The principle must be that they are used to benefit them. I am sorry the Minister has, apparently, set his face completely against retrospection. The Russians had no difficulty, in dealing with the same company, in introducing retrospection and renegotiating the entire deal. I suggest this could be considered in the case of Shell and the Corrib field.

What is the current position on Rockall, the ownership of which is disputed? It is probably the focus of a mineral rich area under the seabed and its position in international law is unclear. I remember attending a conference in the Royal Irish Academy a number of years ago at which international legal experts teased out the issue. We appear to take one view and the British another, as they want it too. Our claim seems to be much stronger. I ask the Minister to update us on the position. If it has not yet been clarified, I ask him to make a very strong defence of Irish interests.

The Minister has indicated he has examined the recommendations made in the report which, on initial consideration, seem both sensible and desirable. He has been positive, detailing the ones which have been covered and those that need further exploration. He has also outlined the recommendations about which he has strong reservations; I take it that retrospection is one of these but perhaps he has further information to give us.

The strategy outlined by the Minister, if carried into effect, is reasonable, but it is a statement of intent rather than anything directly practical. Seeking to maximise the benefits to the people is clearly in tune with the Keating principles and I very much hope the Minister will be in a position to comment on this. I have a motion on the Order Paper requesting the Government to revive and implement these principles. The Minister has also indicated a wish to provide opportunities and encourage private operators to take the risk associated with investing in exploration and deepening knowledge of the potential of offshore resources. I have referred to the work being done in Galway in this regard. The Minister has also outlined the need for a robust regulatory regime.

As I have been involved in the business of the House for the entire day from the Order of Business onwards, I have only had a little time to glance at the Minister's speech. I do not intend any discourtesy if I misrepresent or misunderstand what I have read quickly. I am not sure if he referred to regulation, not just in the financial sense in order to produce the maximum yield for the people but also in terms of safety. In the case of Shell, there were a number of violations of safety regulations, environmental protection and planning laws. The BP oil spill was referred to in a report produced by SIPTU which might be recommended to the Minister. It sought proper safety regulations. I hope the Minister will take this into account.

It would be useful to receive an update on fracking. This is a new method of exploration, particularly for gas, and it involves the introduction of water at high pressure into the geological strata at a considerable depth. It has been successful in both Canada and Poland in producing significant gas yields. On the other hand, there are serious concerns about the environmental impact of this method of mining, particularly the effects of the unanticipated release of gases into the atmosphere and pollutants into the water table. Perhaps the Minister might refer to this. I may have to go somewhere else, but I will read his reply. I encourage him to use everything at his disposal, including the weapon provided by this excellent report, to extract the maximum benefit from our natural resources.