asked the Minister for Energy if he has any plans for an increased role for the Irish National Petroleum Corporation in the exploration and development of our oil resources.

When the Irish National Petroleum Corporation (INPC) were established as a limited company in 1979 the then Government decided that they should not be empowered to engage in any kind of exploration activities.

Recently, certain companies involved in exploration offshore Ireland have sought the INPC's participation, on a carried basis, in their exploration efforts. I have considered this matter carefully and am of the opinion that the INPC should be permitted to accept these invitations, on condition that the interest is small, that it is carried and that the corporation are not liable for costs if no development takes place. Furthermore, in the case of a development any such interest would be subsumed into the overall State participation. Arrangements for the necessary amendment to the memorandum and articles of association will be completed over the next few weeks.

The purpose of the amendment of the INPC's memorandum and articles of association is to provide a mechanism whereby the State may accept offers to participate in the exploration phase of the search for hydrocarbons. Once a commercial discovery has been established, the State already has the right provided for under the 1975 licensing terms, to participate up to a maximum level of 50 per cent in the development.

At this point in the exploration of our offshore I consider it appropriate that a State entity should acquire first hand experience without cost to the Exchequer. Furthermore in the case of licences to be awarded under the third licensing round, which closes next Saturday, the criteria for allocation of acreage will be the extent to which consortia are prepared to enter into firm geophysical and drilling commitments in respect of the blocks for which they apply, the consortia's technical competence, financial resources, experience both inside and outside Irish waters and the extent to which they are prepared to commit to the use of Irish goods and services.

I will be moving on in one minute.

I welcome the Minister's announcement. Will the involvement of the INPC improve the information available in relation to the activities of exploration companies?

I do not think it will have a significant bearing one way or the other.

Has the Minister any plans to bring in legislation to give statutory backing to the INPC?

I have not at present but this might be an ideal opportunity to do so especially since we are expanding their powers.