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Dáil Éireann díospóireacht -
Wednesday, 21 Oct 1998

Vol. 495 No. 5

Written Answers. - Offshore Exploration.

Caoimhghín Ó Caoláin

Ceist:

75 Caoimhghin Ó Caoláin asked the Minister for the Marine and Natural Resources the firm commitments to the Irish economy in terms of jobs, services and related spin-offs he will ensure and require by law from the oil companies in view of recent significant discoveries of gas off the west coast and the fact that the State offers the lowest corporation tax and royalty rates in the world to the oil and gas industry, with all drilling labour, research, production, goods and costs deductible against tax. [20676/98]

It is Government policy to ensure that the Irish economy benefits to the maximum extent possible from hydrocarbon exploration activities in the Irish offshore. I have impressed on operators that Irish workers and suppliers of goods and services must be given opportunities to participate in such activities and I will continue to do so.

However, responsibility for the employment of workers, and the provision of services and related issues are a matter for the exploration companies and their contractors. EU legislation on freedom of movement of workers within member states precludes the imposition on licence holders of any conditions relating to levels of employment of Irish workers. In addition, the imposition of conditions in relation to employment, provision of services and related spin-offs, is also precluded under the European Communities (Hydrocarbons) (Prospection, Exploration and Production) Regulations 1998 which transposed into Irish law the EU Directive on the conditions for granting and using authorisations for the prospection, exploration and production of hydrocarbons.

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