Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 79: To ask the Minister for Communications, Marine and Natural Resources the extent to which he will examine, review or redraw the licensing regime for oil, gas or other mineral explorations, on or offshore, with the objective of ensuring a fair return to the State, the consumer and keeping in the mind the necessity to encourage exploration and development in this regard; and if he will make a statement on the matter. [5408/07]

Noel Dempsey (Meath, Fianna Fail)
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The licensing terms for petroleum exploration and development need to achieve a balance between ensuring a fair return to the State while encouraging exploration. The licensing terms were last adjusted in 1992 and I am currently reviewing the terms. In reviewing the licensing terms, I am conscious that in the period since the terms were last adjusted fifteen years ago, that the level of exploration offshore Ireland has been relatively low and there has only been one commercial find — the Corrib Field in 1996.

The cost of exploration is borne by the industry on the basis that the terms on offer by the licensing country reflect in a realistic way the likely prospect of making a commercial find. Investment by the exploration industry is very mobile. The industry will give priority to areas with good prospectivity, where the risk/reward ratio is attractive. My Department has now received the report of the consultants who were engaged to assist with the review. I will consider the report and its recommendations before bringing my proposals to Government for the future of the licensing regime.

With regard to non-petroleum minerals, it is Government policy to stimulate discovery of economic mineral deposits and to maximise the contribution of the mining sector to the national economy, with due regard to its social and environmental impact. Exploration and development is undertaken by private enterprise and regulated under the Minerals Development Acts, 1940 to 1999. All extraction of minerals under the Acts is subject to payment of royalties to the State. While it is my intention to consolidate and update the Minerals Development Acts in a new Minerals Development Bill, currently being drafted, I do not propose any change of policy.