Martin Ferris
Question:373 Mr. Ferris asked the Minister for Communications, Marine and Natural Resources the worth of the Corrib gas field to the State in terms of revenue if and when it comes on stream. [32774/06]
View answerTuesday, 17 October 2006
Questions (294)
Written answers
The principle mechanism for extracting State revenue from off-shore production under the current exploration terms is via a special rate of Corporation Profits Tax at 25%. My Department claims no particular expertise in taxation matters, which is the preserve of the Revenue Commissioners. However, taking current estimates of the recoverable reserves, applying the recent market price for gas and roughly estimating the cost of production over the life of the field would lead to a figure for direct Government revenue of the order of one and a half billion Euro. It will be appreciated that each of these parameters is subject to significant variation and that the timing and profile of production would also have an impact. This calculation is based on a historically very high gas price and the reality could be considerably lower. I am not in a position to estimate the indirect revenue, which is likely to be substantial. I would also reiterate that the terms themselves are under review although the outcome of the review will not affect existing licences and leases.