The review process referred to in the Green Paper has to date involved analysis undertaken at the instigation of my Department in relation to the existing licensing terms. This analysis included the following:
An evaluation of the current fiscal framework as an efficient means of increasing long term investment and revenue generation in the petroleum sector for the benefit of both the Irish State and investment from oil companies.
An examination of the current Irish terms as an effective and robust taxation system that best reflects the public interest.
A review of alternative options to the current system.
Recommendations for changes applicable to future licences.
My Department has engaged independent external experts to review the work undertaken internally. The external experts terms of reference are as follows:
Consideration of the Department's views on how the licensing regime could best be changed, as set out in two reports covering fiscal and non-fiscal terms respectively.
Advice on any alternative fiscal regimes which could better achieve the objectives.
Advice on peer countries (comparable in terms of size or petroleum development) considering relative tax and royalty burdens and other licence terms vs. objectives.
A quantitative analysis of the preferred regime (underlying model, specific details – thresholds, rates etc.).
Advice on any additional non-fiscal features considered beneficial to the State.
The report of the independent experts is due in early November.