Trevor Ó Clochartaigh (Sinn Fein) | Oireachtas source

Cuirim céad fáilte roimh an Aire Stáit. Tá brón orm go raibh mé beagán mall ag teacht anseo. Tá mé sásta go bhfuil an Rialtas tar éis admháil go raibh sé mí-cheart agus go raibh sé ag teacht isteach lena oiread fuadair agus lena oiread deifre air leis an reachtaíocht seo. Tá an reachtaíocht seo thar a bheith tábhachtach agus tá sé fíor-thábhachtach go bhfaighimid deis ceart é a phlé trasna an Tí.

Directive 2013/30 EU which the Bills seeks to transpose into Irish law was published more than two years ago on 12 June 2013. We wondered why the Government had sought to rush the Bill through the House last week. There are certain elements in Irish society which are concerned when they see something about oil and gas, in particular, coming through with such haste. I am pleased that the Government has given us more time to ascertain the impact of the Bill on oil and gas operations in this country. It is not appropriate to carry out business in this House in that manner and I am pleased this has been acknowledged and that the Leader has provided more time for us to reflect on the legislation.

This House has a history of rushing legislation through in a haphazard manner. The bailout of the banks and the winding down of IBRC immediately spring to mind. Neither does this House have a good record concerning offshore oil and gas safety operations. An example of where engagement with the community seriously failed is the Corrib gas project and the effect it had on the community of Rossport. The Rossport project is important because it involves a dispute about ownership and the use of natural resources. It illustrates the threats posed to local communities by a powerful coalition of State and capital interests and as a consequence raises serious questions about the link between politics and power. Locals opposed to the development frame their opposition in terms of safety and health. They claim the pressure of unprocessed gas in the pipeline will be too high; that the pipeline will be too close to people’s homes and that the environmental effects of gas transportation and processing will be devastating to the place, people and wildlife. They want the gas to be processed offshore. I note the sad death of Lars Wagner in a workplace incident in the Corrib gas tunnel in 2013. I wonder whether the Bill under discussion would have addressed the situation that led to his death. Has the Government received a full report on the incident and, if so, will it make it available to us?

Landowners also took issue with a high pressured pipeline running through their land and protested against what they believed to be an infringement of their rights. As a result, in March 2005, Shell applied to the High Court for an order restraining landowners from interfering with the laying of the pipeline. An injunction was given and five local people were imprisoned for interfering with the work of Shell. These people became known as the Rossport Five. Many maintain that the Government was complicit in the failure to engage with the local community. Local people believe they were ignored by the Government and that private business was allowed a free hand in developing energy infrastructure as it wished. This European directive appears to be well meaning. We will examine it and introduce amendments on Committee Stage.

In May 2012 the Oireachtas Joint Committee on Communcations, Natural Resources and Agriculture published a fairly comprehensive report and made recommendations on the industry. I have not seen much progress by the Government on the issues raised. The 11 recommendations include the following:

1. Having good basic law in which policy principles are enshrined can greatly assist a country in developing and benefitting from its petroleum resources.

There should be a clear and transparent fiscal and licensing regime, which provides certainty for the State and industry alike.

The Joint Committee recommends that a simple and transparent system be put in place which is underpinned by clear law. To this end, the Petroleum and Other Minerals Act 1960should be reviewed.

Retrospective changes to fiscal and licensing terms can risk long-term reputational damage. Existing agreements should be adhered to irrespective of changing circumstances.

In contrast, future agreements can reflect policy changes necessitated by significant changes in the policy context and circumstances, for example a large increase in the number of commercially viable finds or the size of fields.

3. Recognising that fields may be subject to corporation tax and profit resource rent tax (PRRT), the State should seek to maximise tax revenues from petroleum exploration and production without deterring petroleum investment.

In addition, the report stated: "4. The Joint Committee strongly believes that the State should keep fiscal and licencing terms under constant review." It concluded:

The obtaining of geological data from all licensees is of paramount importance ... This would entail mandatory unified operations for a field extending over different contractual zones by different operators and offers advantages including better resource management.

Eleven recommendations were made in total. Will the Minister of State, please, outline where we are in terms of their implementation? There is a great rush to get the Bill through the House. An Oireachtas joint committee's report has been sitting on the shelf since 2012 and it does not appear that any action has been taken. There has been a complete lack of action.There is a fear that in that void the oil companies are being laissez-faire. I note the Ballyroe oil find off the coast of Cork is 1.7 billion barrels. Can the Minister of State outline what other oil finds there may be and the potential tax income for the State? If the Government took on board the recommendations of the joint committee would there be a much greater income for the State? There were very specific recommendations around the tax take in particular and we need to ensure that the natural resources of the State are used for the benefit of all the people and that the oil companies pay a greater share of the profits they make.