Corrib Gas Field Licensing Terms
Joe Higgins asks why the Corrib gas-field licences surrendered the State’s automatic stake and royalties without an independent valuation, and whether the terms will be changed. The Taoiseach defends the licensing framework and cites environmental assessments, but does not directly address the requested valuation or revision.
In recent days, acres of newsprint have been filled with details of the alleged rip-off of €5,000 from a semi-State company. I agree with the Taoiseach when he says there should be answers. Channel 4 television news last night highlighted an incomparably more serious rip-off of the taxpayer. There is probably €1 billion worth of gas in the Corrib gasfield. In the 1980s, the Taoiseach's former colleague, Mr. Burke, varied the licence for the oil companies moving into that field removing the automatic stake of the State and giving it to them without a penny in royalties. In 1992 the Taoiseach, as Minister for Finance, reduced the tax take from these companies to a derisory 25%. The Minister, Deputy Fahey, and his Department intervened in the planning process in Mayo and bullied the planners and some of the local people in attempting to ram through the plans of Enterprise Oil.
We know that Marathon Oil and Pearse Construction are involved in the project and donated large amounts of money to Fianna Fáil. We know that Enterprise Oil was a regular guest of the Taoiseach in his tent at the Galway Races. Will the Taoiseach give us the truth on this matter? What kind of huckster's deal was made between Fianna Fáil and the oil companies that handed over a fabulous natural resource without a single cent in royalties being paid to the people? What was the content of the negotiations? How much did the parties to the negotiations get in donations from these companies? Can we have as quick an investigation into this as the one we are promised in the cigars and whiskey affair? We must let the people know why their fabulous wealth has been given to these private companies while they must pay top euro to buy gas from them.
Comment on this
The Corrib field is being developed under the 1992 licensing terms, passed by this House. The field was not discovered until 1996 and there is no linkage. Irish licences are similar to those operating in other European countries such as the UK, Denmark and Holland. While the tax rate is lower than in those countries, it reflects the significantly lower success rate of island gas exploration. Unfortunately this continues to be almost zero. It is great to rattle the sabre and speak of deals and cosy cartels, but unfortunately this country has been singularly unsuccessful in most of the area of exploration. The rights and wrongs in Mayo will be sorted out in the planning process.
One allegation was made against the Minister, Deputy Fahey, and he has brought it to my attention – I believe it was shown on television last night but I did not see the programme. The Minister has told me that he had no direct dealings, good, bad or indifferent, with the company or a planning committee. Of course, officials from the Department were involved in the issue, as was Deputy Fahey, as Minister responsible. He has spoken in this House on the issue. No pressure was applied regarding planning permission for the terminal and it has gone through the process. I met the residents in this area and know they played an active part in the process.
The details of donations to my party, or any party, are included in the returns sent to the Public Offices Commission.
Comment on this
There is a small by-road in Mayo that has been labelled the "Bertie bypass" because the Taoiseach's entourage was diverted on to it to avoid local protesters. Fortunately, they did not catch up with the Taoiseach.
Nach bhfuil a fhios ag an Taoiseach go bhfuil muintir Iorrais agus muintir na tíre scanallaithe faoi an dóigh a thug Fianna Fáil an tseirbhís nadúrtha i bpáirc gháis na Coiribe do chomhlachtaí móra gan pingin amháin, agus cén fáth?
The Minister for the Marine and Natural Resources told me in the last session that there was no attempt to independently assess the value of the Corrib gasfield. In my youth I went to the Dingle fair every month with my father to sell cows. The poorest and most uneducated farmer knew exactly the value of his cattle – if he did not he would not survive.
Comment on this
Why was no independent assessment carried out? Will it be done now and will the terms of this scandalous deal be varied?
Comment on this
The environmental impact assessment for both the terminal and offshore were submitted according to the EU environmental impact assessment directive—
Comment on this
—and assessed by the marine vetting committee, MLVC, in consultation with two firms of consultants.
Comment on this
I am not hiding anything, I am giving the factual information and answering the question.
Comment on this
I ask Deputy Quinn to leave the supplementary questions to Deputy Joe Higgins. It is wrong that a number of Members should try to frustrate any Member of this House.
Comment on this
The Deputy asked me about the planning allegations and the environmental impact assessment. He stated that Deputy Fahey, as Minister, told him there was no independent assessment. He asked me about the tax position in 1992 and I have answered those questions. He asked me about funding and I have answered that. If he wants to know who goes to the Fianna Fáil tent at the Galway Races, I would be very glad to bring him, but he would probably be abroad with his other friends. He asked me if I had met the local people. He said something about a bypass. I remember travelling along a coastal road, but the only bypass would have put me into the middle of the sea. I met the local people.
Comment on this
The local people asked me if I would meet them in the local tavern, which I did. I and the local Deputy spent a long time talking to them. What else can I answer?