Tax write-offs and Marathon terms
Bruton asked about transferring exploration write-offs, gas pricing and whether the new terms applied to Marathon. Burke said Marathon had separate arrangements and that write-off details could be examined when legislation was introduced.
First, has the Minister any plans to restrict the write-off under free depreciation by companies which might use the tax losses of other companies? Secondly, in relation to gas, has he considered declaring that an energy-related price would be given for gas discovered? Thirdly, do the terms now announced apply to the Marathon licences?
Comment on this
On the last question, Marathon is a separate deal with the State altogether. There are specific arrangements there with the State, referred to by Deputy Spring, in relation to the blocks. On the question of write-offs, that is a matter that can be teased out in the House when the legislation comes in. It is not as simple as the suggestion in the papers of one company selling their exploration costs to another and through the marketplace. That is to suggest that one company will stay and the others will give them their write-offs. I do not think it will work like that. As far as an energy-related gas price is concerned, gas pricing has been traditionally a confidential matter. It is not something which I intend to divulge in the House today.