Michael Ring
Question:149 Mr. Ring asked the Minister for the Marine and Natural Resources the monetary benefits which will accrue as a result of the Corrib Gas Field; and the benefit it will bring to the people of north Mayo. [16732/01]
Written Answers. - Corrib Gas Field.
The current fiscal terms for exploration and exploitation of petroleum offshore Ireland are governed by the provisions pertaining to petroleum contained in the Finance Act, 1992. Under this Act, corporation tax at a rate of 25% will apply to profits from gas production under the petroleum lease for the Corrib field. The corporation tax will be payable after the deduction of allowances. These allowances relate to capital and operating expenditure and abandonment costs for the field. In addition, exploration costs are also deductible, which need not necessarily be field related, provided they have been incurred in the 25 year period immediately prior to the commencement of field production. The corporation tax accruing will depend on a number of factors, including those referred to above, and the amount and price of the gas sold.
The benefits to the people of north Mayo will include employment during the construction phase of the development and permanent employment at the terminal when it becomes operational. It is understood that up to 500 persons will be employed during the construction phrase and up to 50 persons permanently at the terminal when it becomes operational. Enterprise Energy Ireland anticipates that Irish contractors and suppliers will feature prominently in the terminal construction team. It is anticipated that the development will also provide more localised benefits for the duration of the construction period. These include increased trade for local shops, service industries and accommodation providers as well as indirect employment.
The Government is committed to ensuring that the necessary pipeline infrastructure is in place to bring gas to customers, both domestic and commercial, in the west. I understand that Bord Gáis is at present considering the feasibility of making gas available to towns in the west and north of the country. The existence of this infrastructure should make the western region more attractive to inward investment.