Liam Twomey (Wexford, Fine Gael)
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Question 25: To ask the Minister for Communications, Marine and Natural Resources the extent to which he has had discussions with principals or interested parties involved in oil, gas or other mineral explorations, on or offshore; if discussions have taken place regarding the licensing regime in the future; if previous commitments will be honoured; if discussions have taken place regarding the structures of a future regime; and if he will make a statement on the matter. [26574/06]

Olwyn Enright (Laois-Offaly, Fine Gael)
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Question 29: To ask the Minister for Communications, Marine and Natural Resources his proposals in relation to the operation regarding the issue of licences for oil, gas or other mineral exploration; if it is intended to review existing procedures in this regard. [26585/06]

Noel Dempsey (Meath, Fianna Fail)
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I propose to take Questions Nos. 25 and 29 together.

My Department has ongoing and widespread contacts with both the industry and the sector in general in relation to a wide range of issues. I recently put in motion a review of the licensing regime under which offshore exploration companies operate in this country. My Department will engage the advice of external experts to independently validate the proposed changes and terms of reference for such engagement are being finalised at present.

My concern is that the regime in place must be sufficiently progressive to accommodate both future variations in oil and gas prices and the high cost of deep-water field development. Any amendment of the existing terms would only apply to future licences.

With regard to non-petroleum minerals, exploration and development is undertaken by private enterprise and regulated under the Minerals Development Acts, 1940 to 1999. The current Programme for Government includes a commitment to consolidate and update the Minerals Development Acts, 1940 to 1999. Last week the Government gave its approval for the priority drafting of a new Minerals Development Bill to give effect to that commitment. This Bill, when enacted, will streamline procedures for permitting exploration for and development of mineral deposits and will help make Ireland more attractive for investment in mineral exploration. All extraction of minerals under the current Minerals Development Acts, is subject to payment of royalties to the State. I do not propose to change that policy in the new legislation.

Interested parties were consulted in our consideration of the proposed legislation by way of an invitation to prepare submissions and officials of my Department and representatives of the Irish Mining and Exploration Group of IBEC last year concluded a joint review of our exploration and mining legislation.