Among the recommendations made by the Joint Oireachtas Committee on Communications, Natural Resources and Agriculture in a detailed report published on Wednesday 9th May, is the establishment of a forum of industry stakeholders including trade unions, community representatives and the oil and gas companies to help maximise the potential of Ireland’s hydrocarbon resources.
"The Government should develop a policy, in consultation with this forum, to ensure that employment opportunities are maximised within this State," the 200 page report recommends.
The Report on Oil and Gas Exploration was published following detailed submissions to the Committee by various interests, including a presentation by SIPTU General President, Jack O’Connor.
-- Advertisement --
In his presentation, Jack O’Connor set out the findings of the research carried out by SIPTU and published in the union’s 2011 report Optimising the Potential of Ireland’s Oil and Gas Resources, including the setting up of a “stakeholders’ forum”.
Among the other suggestions made by SIPTU and endorsed by the Oireachtas committee was a review of the current fiscal and licensing terms for oil and gas operators and an increase in the rate of tax on profits from hydrocarbon finds.
The Committee has recommended that the overall tax take should be increased to a minimum of 40% for future oil and gas finds, to 60% for medium-sized finds and 80% for very large commercial discoveries.
At present a 25% tax rate is applied on profits rising to 40% for major discoveries. It also backs on-going contact with other oil and gas producing countries, including Norway and Portugal, "with a view to establishing a forum to exchange ideas on best practice on various aspects of petroleum exploration and production".
"The Joint Committee strongly believes that the State should keep fiscal and licensing terms under constant review” and that reviews should be made “before each licensing round takes place."
It argues that the State "could explore and consider ways of controlling production volumes as part of its resource management" similar to the practice in Norway in order to ensure that as much as possible is produced from a field.
It also recommends that consideration be given to the banning of flaring of gas, a method used to burn off surplus gas from a well as a means of disposal or as a safety measure to relieve pressure.
(CD/GK)
