New exploration licences urged
The Government also needs to review the favourable tax breaks given to exploration companies, the Campaign for the Protection of Resources (CPR) said.
The country is losing out on millions of euro in royalties, taxes, wages and other spin-offs as a result of the Government’s licensing arrangements favouring exploration companies, CPR chairman Padraig Campbell said.
The terms and conditions on the licences introduced by Ray Burke in 1987 need to be suspended, the CPR said.
The Scottish economy has benefited to the tune of stg£200 billion from the Aberdeen oil fields, Mr Campbell said, but the bulk of the money from resources off the Irish coast was being spent outside of the jurisdiction.
According to Mr Campbell, Ireland’s hydrocarbon legislation is covered by the 1992 Finance Act allowing:
The lowest corporate tax rate in the world at 25%.
No royalties or other production related levies.
100% write-offs for the oil companies effectively wiping out tax takes.
No onus on the oil companies to use Irish ports.
No onus to use Irish jobs, goods or services.
Green Party communications and natural resources spokesman Eamon Ryan said the State needed to set environmental standards. “Our Government’s exploration policy seems to be one of accepting the least possible environmental analysis, with minimum value-added spin offs for local Irish companies and the lowest revenue for the Irish exchequer.”
