Dáil Éireann Debate, Thursday - 28 October 2010
99 Deputy Michael Creed asked the Minister for Communications, Energy and Natural Resources further to Parliamentary Question No. 238 of 20 October 2010, if he will clarify the 40% return to the State as referred to in the reply; if this refers to the gross value of the mineral gas and petroleum deposit; and if he will make a statement on the matter. [39633/10]
Amharc ar fhreagraThe 40% return to the State referred to in my reply to Parliamentary Question No. 238 of 20th October 2010 refers to taxable profits. Ireland followed the lead of other countries such as the UK and Norway and moved away from a royalty based payments system to a tax based system in 1987. Under a tax based system the return to the State is linked directly to the profitability of the oil or gas field. Under a royalty system payments are linked to the volume of production and take no account of differences in development cost or actual profitability.
