asked the Minister for Industry and Commerce what consultations his Department have had with the British authorities concerning the proposed exploration of the Irish sea for natural gas; and if he will make a statement on the Government's attitude to the development of natural resources off the coasts of Ireland.
Ceisteanna—Questions. Oral Answers. - Irish Sea Exploration.
61.
The only consultations with the British authorities likely to arise in connection with the exploration of the Irish Sea relate to the determination of the exact position of the line dividing the continental shelf in the area between the two countries.
The policy of the Government is to secure the most thorough and efficient exploration and development of the natural resources of the continental shelf by providing, as in the land area, attractive facilities to private enterprise concerns, having the necessary technical and financial resources. The Continental Shelf Act, 1968, which provides the statutory framework for such operations, became law on 11th June, 1968.
Would the Minister not consider employing a contractor to engage in this sort of survey — somebody who would contract to do the survey for the Government?
The only way in which this could be done would be — if one could get somebody to do this — by the State's providing all the capital. I doubt if we could get somebody who would provide all the technical know-how merely on a contractual basis. Past experience in regard to mining has shown us that the operation of private enterprise in this field has been very much more effective than State enterprise. The financial risks involved are very great — with no certainty of success: indeed, the probability of failure. In these circumstances, it seems much more advantageous to us to allow portions of the area to be surveyed by people who have the technical and financial resources to do it, whose business it is and whose capital is invested on the basis of having a strike, say, of one in 20 or one in more than 20 survey areas. For the State to enter into this would not seem to be a good proposition.
How expensive?
It could be some millions of pounds, certainly.
For what area?
Say, for the Irish Sea area.
So we have to wait for private enterprise?
Private enterprise is anxious to do it.
Have they so indicated?
They have.
Have there been any moves yet?
No.
What royalties would be due to the Irish Government?
There will be royalties if there are discoveries. There will be a number of other benefits accruing to the State in the sense that the licences or leases that we would grant after there was a strike would almost certainly contain provisions that the finds would be shipped from our ports and that income tax, and so on, would have to be paid on profits, and so on.
Would the Government have any control over the price of the gas?
If the Deputy is thinking of gas to be supplied to us, this is a matter that would have to be negotiated.
Next question.
It would seem reasonable to have some control over it.
Question No. 62.