Robert Dowds (Dublin Mid West, Labour)
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608. To ask the Minister for Communications, Energy and Natural Resources the reasons energy resources lying within the territory of the State, including its territorial waters, cannot be nationalised and exploited by the State itself for the benefit of the Irish people as is the practice in other European states; and if he will make a statement on the matter. [45672/13]

Pat Rabbitte (Dublin South West, Labour)
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Ireland operates a model where the State provides the opportunity and private industry bears the risk associated with investing in exploration activity. In addition to offering regular and attractive licensing initiatives and actively promoting the opportunity to invest in exploration in the Irish offshore, my Department works with a range of other State bodies to support the conduct of effective exploration for our natural resources of oil and gas. I am of the view that it would be more effective to seek to build on this cooperation rather than to nationalise the nascent petroleum industry and establish a State exploration company.

Given that a single exploration well in the Atlantic can cost in excess of €100 million and the high risk of unsuccessful exploration in the Irish Offshore, it is difficult to make the case that the taxpayer should make such an investment in the sector at this time. There is no reason to believe that a State exploration company would be any more successful than private industry in choosing the most prospective areas in which to invest.