Michael Moynihan (Cork North West, Fianna Fail)
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25. To ask the Minister for Communications, Energy and Natural Resources the progress he has made in developing a new fiscal and regulatory framework for oil and gas exploration industry here; the person he has consulted in developing this new framework; the costs of developing this framework; and if he will make a statement on the matter. [4249/14]

Pat Rabbitte (Dublin South West, Labour)
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On 9 May 2012 the former Joint Oireachtas Committee on Communications, Natural Resources and Agriculture published its Report on Offshore Oil and Gas Exploration. The Report contained a number of recommendations in respect of the fiscal and regulatory framework applying to oil and gas exploration in Ireland.

At my request the Report was debated in Seanad Éireann on 27 June 2012 and in Dáil Éireann on 14 May 2013, with the debate concluding on 9 July 2013.

During the course of the Dáil debate I stated my intention to seek further independent expert advice on the “fitness-for-purpose” of Ireland’s fiscal terms, such expert advice to focus on what level of fiscal gain is achievable for the State and its citizens and, equally important, on the mechanisms best suited to produce such a gain.

On 24 September 2013 my Department issued a request for tenders under national procurement rules on etenders.gov.ie for the provision of expert advice on Ireland's oil and gas exploration development and production fiscal terms.

On further consideration of the nature of the assignment required to be undertaken by a successful tenderer, in particular the need for the successful tenderer to address the issues raised in the wider public debate on the fitness for purpose of the current fiscal terms, my Department on 23 December 2013 re-tendered the revised assignment in the Official Journal of the European Union and on etenders.gov.ie. The closing date for the receipt of responses to the revised request for tenders is 3 February 2014.

The revised terms of reference for the assignment are as follows:

Having regard to the fact that Ireland’s indigenous oil and gas resources belong to the people and to the policy goal of maximising the benefits to the State from exploration for and extraction of those resources, the Minister for Communications, Energy and Natural Resources is seeking expert advice as to:

(i) The “fitness for purpose” of Ireland’s current fiscal regime for oil and gas exploration, development and production having regard to:

- The petroleum prospectivity of the Irish offshore;

- Ireland’s relative attractiveness as a location for mobile international exploration investment;

- The findings of the May 2012 report of the former Joint Oireachtas Committee on Communications, Natural Resources and Agriculture, together with the debate of that report by Dáil Éireann;

- Issues raised through the wider public debate on the fitness for purpose of Ireland’s fiscal regime;

- Comparative international experience; and

- Other relevant reports.

(ii) Supported by analysis, whether revisions should be made to the fiscal licensing regime, in particular having regard to:

- The level at which the terms are set;

- The nature of the instruments used; and

- The tax reliefs available, including both the nature and timing of tax reliefs.

- It is intended to bring consideration of this matter to a conclusion in the coming months. This will ensure that the next licensing round can be launched against a backdrop of regulatory certainty and encourage new investment in exploration.

The Petroleum and Other Minerals Development Act 1960 provides the legislative underpinning to the regulatory framework applying to oil and gas exploration in Ireland. The Act is important in setting out the high-level exploration licensing regime and the rights conferred by the various authorisations. Since it was enacted, a broad body of legislation at national and European Union level that is directly relevant to petroleum exploration and production activities, including planning, safety and environmental legislation, has been passed. Against that background, my Department is currently engaged in a review of the 1960 Act.