Bernard Durkan (Kildare North, Fine Gael)
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Question 189: To ask the Minister for Communications, Energy and Natural Resources his plans for the future development of the mining and exploration sectors on and off-shore, having due regard for the need to encourage mining exploration and at the same time give a fair return to the taxpayer; and if he will make a statement on the matter. [23290/07]

Eamon Ryan (Dublin South, Green Party)
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Last week I announced a new Licensing Round opening acreage in the Porcupine Basin to the west of Ireland for exploration for oil and gas. The area covers unlicensed blocks in an area of approximately 63,500 square kilometres. The Porcupine Licensing Round is part of an ongoing strategy of offering regular opportunities for licensing in the basins of the Atlantic Margin.

Ireland's oil and gas is a resource of the people and I want to ensure that our waters are fully explored and also that we get a proper return to the State where commercial finds are made. To this end, in August I announced changes to the tax regime which are designed to provide the Exchequer with potentially greater funds if commercial finds are made.

Under the new regime profitable fields will pay up to 40% in taxation to the Exchequer which represents a top rate increase of 15%.

I have also recently introduced new non-fiscal licensing terms for oil and gas exploration that are designed to encourage more vigorous exploration proposals from the industry while ensuring that there are sufficient incentives to maintain ongoing interest by the oil companies in Ireland as a location for oil and gas exploration.

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. New exploration is continuously undertaken as part of my requirements to holders of Prospecting Licences, of which there are currently 331. Details of these Licences can be found in the six monthly report to the Oireachtas, which I am obliged to lay before the House under the Minerals Development Acts, 1940 to 1999. The last such report was in respect of the six-month period ended 31 December 2006. I will shortly lay before this House the report for the six months to 30 June 2007.

All extraction of minerals under the Acts is subject to payment of royalties to the State. These are negotiated individually. They reflect current international practice and the economics of the specific deposit to give a fair market-based return.

While it is my intention to consolidate and update the Minerals Development Acts in a new Minerals Development Bill currently being drafted in the Office of the Parliamentary Counsel which will further encourage mineral exploration in Ireland, I do not propose to change policy in relation to royalties.