asked the Minister for Energy whether he has any plans to increase the potential tax on and royalty take from oil fields above the present maximum of 77 per cent; if he is aware of the present maxima operating in relation to British and Norwegian oil finds; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers - Oil Field Revenue.
25.
The taxation of profits arising from oil production is a matter for my colleague, the Minister for Finance.
The two other elements which go to make up the total State take from the development of an oil field are royalty and State participation. I have no plans to increase the present maximum levels of royalty or State participation.
I am aware of the maximum levels of State take in the British and Norwegian offshore areas, but, as I am sure the Deputy will appreciate, the authorities in these areas are dealing with a situation which is quite different from that obtaining in the Irish offshore at the present time.
Would the Minister agree that the difference between the Norwegian and British situation and our situation is now one of degree rather than of kind and that there have been shows of oil off the West coast and does he think it wise at this stage to commit himself to issuing fresh rounds of licences without hardening the terms in any degree?
Yes, I do. While I am hopeful, I wish the Deputy would go along with the reality of the situation which is that we have not as yet discovered commercial quantities of oil. I think we all hope that we will but we have not done so and until we have done so I think there is no case for revising those terms in the way the way the Deputy suggests.
Would the Minister not agree that the level of interest by the oil companies who are at the moment probably the best judges of what oil is or is not there is still high and that we can take that as a guide to the likelihood or probability of oil being found and to the likelihood or probability that even if the terms were hardened they would still seek licences?
I agree that there is a substantial degree of interest by the oil companies, and I am very happy about that, but I would not agree with the deduction the Deputy makes from that fact.