Dáil Éireann Debate, Wednesday - 17 November 2004
251 Mr. Ferris asked the Minister for Communications, Marine and Natural Resources if undertakings have at any stage been given to companies involved in petroleum exploration that the terms and conditions and fiscal regime introduced in 1992 will never be altered. [29433/04]
View answerI can categorically state that I am not aware and can find no evidence of any such undertaking given either by my predecessors in this job or by officials of the Department.
I refer the Deputy to a speech given by my predecessor, Deputy Fahey, at the annual dinner of the Institute of Petroleum in November 2000 when he undertook to keep the licensing terms and conditions under continuing review. While I may decide on the payment and level of royalties, the level of taxation to be applied to this sector is a matter for the Minister for Finance. I would point out that the Finance Act 1992, provided for a tax rate for the upstream petroleum sector, after allowances, of 25% when the general rate for corporation tax was at least 40%. Today the general rate for corporation tax is 12.5% while the rate for the upstream petroleum sector remains at 25%.
