Clare Daly (Dublin North, United Left)
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256. To ask the Minister for Communications, Energy and Natural Resources the direct revenue to the State from the exploitation of the nation's natural resources; and the expected revenue over the next ten years. [6479/15]

Alex White (Dublin South, Labour)
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As the term “natural resources” covers a wide range of activity, the question is too broad in scope to allow a complete response from me. I propose therefore to reply only in relation to hydrocarbons and mining which are in my remit. Profits from Ireland’s three producing gas fields are taxed at a corporation rate of 25% (double the standard rate of corporation tax for trading income) and royalties are payable to the State from two of these, the Kinsale and Ballycotton fields, at a rate of 12.5% of the fair market value of the gas at the well head. The combination of tax, royalties and rental fees currently provides for a State take of 40% of net income from these two fields.

Royalties are not payable on production from the Seven Heads Gas field as Ireland moved away from a royalty based payments system to a tax based system in 1987. The rental fees figure for 2014 for the three gas fields totalled €0.77 million. The royalties received in 2014 from the two gas fields, and attributable to production in the period 1 October 2013 to 30 September 2014, was €1.98 million. The direct financial return to the State from the Corrib gas field, which is expected to come into production in 2015, will be through the 25% corporation tax on profits.

There is no commercial production of oil in the Irish offshore.

In June 2014 Government approval was received to revise Ireland’s oil and gas fiscal terms along the lines recommended by international energy consultants Wood Mackenzie. A key recommendation of Wood Mackenzie was that tax rates in respect of new licences should be revised to ensure a higher share for the State from the most profitable fields. This would result in the application of maximum rate of 55% in the case of new licences. My Department is working with the Department of Finance and Revenue Commissioners to give operational effect to this approach.

A report on the non-petroleum mineral sector carried out by independent economic consultants Indecon in 2013 showed that mineral exploration and mining companies contributed a total of €56.6 million in tax and other payments to the Exchequer and to local authorities during 2012. In addition, the State benefits from payments made by mining and prospecting licence holders in the form of royalties, licence fees and other payments. The most recent figures availble for these payments are for 2014, when €6.45 million was received in total, comprising Prospecting Licence fees of €0.34 million, and royalties and rents from State Mining facilities totalling €6.11million. Profits from mining are taxed at 25%.

Several factors impact on the level of State take from a producing gas field or mineral mine, such as the wholesale price of gas and the global price of mineral commodities, which are subject to significant movement over time, as are production levels. As such attempting to accurately estimate future State receipts over the next ten years would be a speculative exercise.

The amount paid in taxation in respect of Ireland's producing mines or gas fields is a matter between the companies concerned and the Revenue Commissioners and not one in respect of which I have a function.