Joe McHugh (Donegal North East, Fine Gael) | Oireachtas source

-----which is no mean feat. He covered many issues, including the general interaction with politics and power. Even in the health sector there is a jargon phrase, "clinical networking", meaning consultants, the pharma industry or health departments working together on solutions. From my short time in this Department I have noted the very strong collaborative spirit between industry and officials in efforts to work together to share resources and advice and ensuring environmental sustainability. The officials in my Department are working on behalf of the political representatives on behalf of the people. There is a high level of collaborative work on information about the sea bed. Ireland is the fourth largest country in Europe when one considers the geographical size of our land mass under the sea after France, Portugal and Spain. It is hoped that industry and officialdom can work together in assessing what is available and mitigate environmental damage. Wearing my other hat, this is very important within the Department of Arts, Heritage and the Gaeltacht and the National Parks and Wildlife Service working hand in glove with the Department of Communications, Energy and Natural Resources on the protection of wildlife or other habitats that could be affected as a result of industry-led development.The Senator referred to the death in Corrib. I will get the Senator information on that. Those in the best position to talk about what happened in Corrib are the people who live there. I had an opportunity to go to Bellanaboy and various parts of Bellmullet recently to hear a debate. As with any debate, there is passion on both sides. It was apparent to me that there were many economic benefits to the development. Certainly, there were lessons in terms of regulation and enforcement as well. Many lessons have been learned. This has been a dragged-out project. When the operation is commissioned initially it will provide up to 40% of all our gas needs in the short term.

There will be constraints on the fiscal potential or possibilities as a result of one thing and another in terms of a delay. It is important to move forward. Much work has gone on behind the scenes, including the Wood Mackenzie report. The work includes looking at re-addressing the matter within the finance Bill this year, looking at the fiscal regime moving from 40% to 55% and looking at other ways of trying to get revenue once production starts. That relates to future finds and does not affect existing finds.

We need to consider the context as well. A drill can cost upwards of €200 million. Is the State prepared to put that type of investment into a risk that may find an empty field? We need to keep in mind all these considerations. We can learn from it, and we must put community to the heart of any new development. I will digress a little. Let us consider wind farms. There are wind farms in my county. The Donegal local authority gets over €1.2 million in development charges or a rate base per annum. At a local or micro level there are probably better, smarter and more clever ways of trying to ensure that communities get the dividend as well. We can learn from that.

I do not agree with the comments on a laissez-faireattitude to companies. Within the narrow confines of this legislation, companies must have a contingency plan and consider risk assessment. They will have to show that they are prepared for a possible failure, if that happens.

Senator Whelan commented on how we need to learn from our history. In our short history we have learned from the building boom. We know that a serious lack of oversight and a laissez-faireattitude led to what happened today. I met a developer in Letterkenny recently. He has welcomed the new regulations on building control. This will cost him more, delay his project and his profits will be reduced, but he has welcomed the new regulations. The point is that we can learn from what has happened within the Department of the Environment, Community and Local Government in respect of regulation. That is what we are trying to do in this Bill as well.

Senator Whelan referred to decommissioning. The matter is outside this legislation. I appreciate his comments on trying to get this legislation through. I note Senator Whelan's observations on the Environmental Protection Agency and his confidence in the Commission for Energy Regulation. I do not agree with the former observation but I acknowledge the fact that there are areas where we can do better. The CER has been doing this work since 2010. The commission has been acting as an oversight body and it is important to note that.

A good point was made about resources and skill-sets. Do we have the necessary resources? How do we police the legislation? How do we ensure an appropriate monitoring system? How do we ensure compliance? The CER is a competent authority and has the resources. Our Department has been recruiting experts in the relevant fields. The Department aspires towards looking at different skill-sets in different parts of Europe. Let us consider the example of civil servants in Norway and the United Kingdom. Perhaps we could be clever or smarter in looking at exchange programmes to bring that skill-set into this country. For example, pre-2008 officials from Denver, Colorado engaged with counterparts in Germany and Denmark to try to build up a skill-set around renewable energy. There may be clever ways of doing that. Officials within the Department are looking at those areas and I wish to acknowledge that.

I thank Senator Quinn for welcoming me back to the House. I am pleased to be here again. The critique offered in this House is as good as ever and I acknowledge the Senator's contribution. He referred to the offshore fund and whether the fund was a parent company. Much of that will have to be worked out post this legislation. This is an opportunity to offer suggestions on the matter.

Senator Quinn also referred to unconventional hydraulic extraction. I did not use the word "fracking" but the Senator is right in that is exactly what it is. As he is aware, a report has been commissioned. A particular company or agency is involved but it is a multifaceted approach and involves universities and third level expertise, North and South. I look forward to the outcome of the report. I agree with the Senator that in the meantime the debate should continue. Politicians are not precluded from debating the matter and perhaps there is an opportunity to do that. Whatever the report shows up, it will be the outcome of two main pillars in terms of concern, that is to say, human impact and environmental concerns. The report will also consider the geology and whether it is conducive or otherwise to carrying out this particular procedure. We need to look at all of these factors and feed in to the process at a political level. I agree that the debate should continue.

I made a reference to financial liability. A report is due in the autumn in this regard. I will ensure that my officials present the House with the findings from the European Union in the autumn.

I thank the Acting Chairman and I acknowledge the patience of Members in recent days.