Clare Daly (Dublin North, United Left)
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206. To ask the Minister for Communications, Energy and Natural Resources the amount of revenue the Irish Exchequer has received from the exploitation of the national natural oil and gas reserves here, in each year, for the past three years; and the estimate for revenue in this area in the current year and the next five years and beyond. [7422/15]

Alex White (Dublin South, Labour)
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Ireland has three producing gas fields namely the Kinsale, Ballycotton and Seven Heads fields off the coast of Cork. There is no commercial production of oil in the Irish offshore. The revenue generated for the State from the production from these gas fields is received in the form of acreage rental fees, royalty payments (with the exception of the Seven Heads Gas field) and corporation tax.

Profits from the three producing gas fields are taxed at a corporation rate of 25% (double the standard rate of corporation tax for trading income). In addition, royalties from the Kinsale and Ballycotton gas fields are payable to the State at a rate of 12.5% of the fair market value of the gas at the well head. The combination of tax, royalties and acreage 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 direct financial return to the State from the Corrib gas field, which is expected to come into production in 2015, will be through acreage rental fees and the 25% corporation tax on profits.

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.

The acreage rental fees figure for 2012, 2013 and 2014 for the three producing gas fields were, respectively €0.77 million, €0.73 million and €0.77 million. The forecast acreage rental fees figure for the three gas fields for 2015 is €0.77 million.

The royalties received in 2012, 2013 and 2014 from the two gas producing fields were, respectively, €3.96 million, €4.59 million and €1.98 million. The forecast royalty figure for the two gas fields for 2015 is €1.5 million.

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

Several factors impact on the level of State take from a producing gas field, such as the wholesale price of gas, which is subject to significant movement over time, as are production levels. As such attempting to accurately estimate State receipts in the next five years and beyond would be a speculative exercise.