Rabbitte must make real and substantial changes to Ireland’s oil and gas tax regime – Colreavy
Deputy Michael Colreavy, Sinn Féin spokesperson for Communication, Energy and Natural Resources, has said that Minister Pat Rabbitte must make real and substantial changes to Ireland’s oil and gas tax regime.
Responding to the Ministers contribution to a debate on Ireland’s offshore oil and gas in the Dáil, Deputy Colreavy said:
“According to a 2006 report carried out by the Department of Communications, Energy and Natural Resources there is approximately 6.5 billion barrels of oil and 20 trillion cubic feet of gas off Ireland’s coast.
“Under the current tax regime the state will receive very little return from these resources if they are extracted in the future.
“While I accept that it is the oil and gas companies who should carry the risk in exploration rather than the exchequer, the fact remains that these are resources that belong to the state.
“The reality is that this oil and gas is not going away and it is better left in the ground than to be given away with very little return to the state.
“Oil and gas exploration is a long term strategy and the Minister should adopt a position that will see a continuing return to the state in the future.
“The technology involved in oil and gas exploration is constantly improving. Along with rising oil prices what may not be viewed as lucrative today may become very valuable in the future.
“I once again call on Minister Rabbitte to pay heed to the Joint Committee Report on Offshore Oil and Gas, a report which received the support of all parties represented at the committee.
“The staggered tax rate of 40% for small finds, 60% for medium finds and 80% for very large finds is a sensible and progressive system.”