New oil exploration taxes needed, says SF

THERE were fresh calls last night to change the country’s oil exploration taxes, which are the lowest in the world.

The call from Sinn Féin’s Caoimhghín Ó Caoláin came after the Shell exploration company indicated it will re-apply to build a 150million gas terminal at Bellanaboy in north Mayo. The terminal is needed to process gas from the Corrib Field 70km off the Mayo coast.

The Corrib field, discovered in 1996, could yield up to 21billion worth of gas and Shell has already spent 200m developing the field.

Mr Ó Caoláin has called on the Taoiseach to charge royalties on oil discovered off the coast. “If oil is discovered out there the company won’t have to pay any royalties. Maybe it is time to look at establishing a state exploration company,” he said.

Ireland has the lowest gas tax rate in the world at 25%, compared to the 78% levy paid by exploration companies in Norway.

Companies that find oil or gas don’t have to pay any royalties to the State and all costs can be written off against the generous 25% tax levy.

“This is an issue the public has serious concerns about and it’s something that immediately needs to be looked at,” Mr Ó Caoláin said.

Shell was refused planning permission for the terminal at Bellanaboy last April, when An Bord Pleanála became concerned about the moving of a large section of peat at the site.

The Taoiseach said this week that Shell Enterprise Energy Ireland told the Government it hopes to submit a new application to build the terminal.

The company has had talks with Bord na Mona about storing the moved peat at a nearby cutaway bog.

But locals in north Mayo said last night the strong opposition to the first planning application has not been quelled.

“The people living in this area won’t sleep any easier in their beds at night because Shell propose to use Bord na Mona expertise to remove 600,000 cubic metres of wet peat to a location a few miles away for storage,” local resident Maura Harrington said.

Mayo Independent TD, Dr Jerry Cowley, welcomed news that the company is considering re-applying to build the terminal. “I see it as good news because this part of north Mayo requires any potential employment opportunities,” Mr Cowley said.

“I would urge people not to make rash statements or have knee-jerk reactions to any new proposal until the proposal is studied in full. We have a duty to listen to what Shell is proposing at Bellanaboy,” he said.