Martin Ferris (Kerry North, Sinn Fein)
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Question 375: To ask the Minister for Communications, Marine and Natural Resources his views on whether all further granting of exploration licences be suspended pending the completion of the review of the current fiscal regime; and if he will make a statement on the matter. [31944/06]

Noel Dempsey (Meath, Fianna Fail)
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Exploration licences are issued either through an "open door" system which applies to non-frontier areas such as the Celtic Sea, or through licensing rounds which apply to frontier areas such as the deeper basins of the Atlantic Margin. Applications for licences in "open door" areas may be received at any time and licences are awarded subject to the licensing terms in force at that time.

Licences for frontier areas may only be received when the area is declared open, as happened in the North East Rockall area last year and the Slyne/Erris/Donegal area earlier this year. These licences are also awarded subject to the terms in force at the time of the award. I have signalled my intent to hold a further licensing round in the Porcupine Basin next year. It is my intent that any licences awarded pursuant to that round will be subject to the licensing terms as amended following the review that is now ongoing.

Regarding licensing and development of minerals regulated by the Minerals Development Acts 1940-1999, a review of the current fiscal regime will be undertaken following enactment of a comprehensive new Minerals Development Bill being drafted by the Office of the Parliamentary Counsel to the Government. In the meantime, the current system will continue.

Martin Ferris (Kerry North, Sinn Fein)
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Question 376: To ask the Minister for Communications, Marine and Natural Resources the terms of reference for the review of the fiscal terms governing oil and gas exploration referred to in the Green Paper on energy; and when it is envisaged such a review will be completed. [31945/06]

Noel Dempsey (Meath, Fianna Fail)
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The review process referred to in the Green Paper has to date involved analysis undertaken at the instigation of my Department in relation to the existing licensing terms. This analysis included the following:

An evaluation of the current fiscal framework as an efficient means of increasing long term investment and revenue generation in the petroleum sector for the benefit of both the Irish State and investment from oil companies.

An examination of the current Irish terms as an effective and robust taxation system that best reflects the public interest.

A review of alternative options to the current system.

Recommendations for changes applicable to future licences.

My Department has engaged independent external experts to review the work undertaken internally. The external experts terms of reference are as follows:

Consideration of the Department's views on how the licensing regime could best be changed, as set out in two reports covering fiscal and non-fiscal terms respectively.

Advice on any alternative fiscal regimes which could better achieve the objectives.

Advice on peer countries (comparable in terms of size or petroleum development) considering relative tax and royalty burdens and other licence terms vs. objectives.

A quantitative analysis of the preferred regime (underlying model, specific details – thresholds, rates etc.).

Advice on any additional non-fiscal features considered beneficial to the State.

The report of the independent experts is due in early November.