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Dáil Éireann Vol. 740 Wednesday, No. 1 14 September 2011 DÍOSPÓIREACHTAÍ PARLAIMINTE PARLIAMENTARY DEBATES DÁIL ÉIREANN TUAIRISC OIFIGIÚIL—Neamhcheartaithe (OFFICIAL REPORT—Unrevised) Dé Céadaoin, 14 Meán Fómhair 2011. Ceisteanna — Questions Minister for Communications, Energy and Natural Resources Priority Questions ……………………………… 1 Other Questions ……………………………… 9 Messages from Seanad Éireann ………………………… 18 Topical Issue Matters ……………………………… 18 Topical Issue Debate ……………………………… 20 Suspension of Member……………………………… 22 Topical Issue Debate (Resumed) ………………………… 24 Job Losses ………………………………… 24 Meitheal Forbartha na Gaeltachta ………………………… 26 Suicide Incidence ……………………………… 29 Hospital Waiting Lists …………………………… 31 Leaders’ Questions ……………………………… 34 Appointment of Ministers of State ………………………… 42 Order of Business ……………………………… 42 Tributes to Usher of the Houses of the Oireachtas …………………… 47 Ministerial Rota for Parliamentary Questions: Motion 48 Supplementary Estimates 2011: Leave to Introduce ……………………………… 48 Referral to Select Sub-Committee ………………………… 48 An Bille um an Naoú Leasú is Fiche ar an mBunreacht (Tuarastal Breithiúna), 2011 — Ordú don Dara Céim Twenty-Ninth Amendment of the Constitution (Judges’ Remuneration) Bill 2011 — Order for Second Stage …………………………………… 49 An Bille um an Naoú Leasú is Fiche ar an mBunreacht (Tuarastal Breithiúna), 2011 — An Dara Céim Twenty-Ninth Amendment of the Constitution (Judges’ Remuneration) Bill 2011 — Second Stage … 49 Private Members’ Business Reform of the Common Agricultural Policy: Motion ………………… 69 An Bille um an Naoú Leasú is Fiche ar an mBunreacht (Tuarastal Breithiúna), 2011: Céim an Choiste agus na Céimeanna a bheidh Fágtha Twenty-Ninth Amendment of the Constitution (Judges’ Remuneration) Bill 2011: Committee and remain- ing Stages ………………………………… 86 Ráiteas faoi Eolas do Vótálaithe: Tairscint Statment for Information of Voters: Motion ……………………… 91 Questions: Written Answers …………………………… 93 DÁIL ÉIREANN DÍOSPÓIREACHTAÍ PARLAIMINTE PARLIAMENTARY DEBATES TUAIRISC OIFIGIÚIL OFFICIAL REPORT Imleabhar 740 Volume 740 Dé Céadaoin, 14 Meán Fómhair 2011. Wednesday, 14 September 2011. ———— Chuaigh an Ceann Comhairle i gceannas ar 2 p.m. ———— Paidir. Prayer. ———— Ceisteanna — Questions Priority Questions ———— Offshore Exploration 1. Deputy Éamon Ó Cuív asked the Minister for Communications; Energy and Natural Resources if he intends issuing offshore oil and gas exploration licences in the near future on foot of submissions received by him in 2011; and if he will make a statement on the matter. [23962/11] Minister for Communications, Energy and Natural Resources (Deputy Pat Rabbitte): The 2011 Atlantic margin licensing round was formally launched in October 2010 and the closing date for applications was the end of May this year. The 2011 licensing round was different from previous licensing rounds in that the authorisations on offer are for two-year licensing options and not for the traditional 15 or 16 year frontier exploration licences. Fifteen applications were received under the round and my Department has now concluded its evaluation of the appli- cations received. I will make a decision on the granting of licensing options over the next week or so. 1 Priority 14 September 2011. Questions [Deputy Pat Rabbitte.] There has been a good deal of debate of late on the possible potential of Ireland’s indigenous oil and gas resources. While there has been a modest increase in the number of exploration authorisations in recent years, the overall level of exploration activity has remained stubbornly low. This is particularly true of exploration drilling with an average of only two exploration wells a year being drilled over the past decade. Companies that are offered licensing options under the 2011 licensing round will have to undertake work programmes agreed with my Department. These work programmes, which will principally involve desktop studies, will then inform decisions to be made two years from now, as to whether these companies will actually apply for exploration licences with a view to then potentially moving towards exploration drilling. Deputy Éamon Ó Cuív: The Minister is no doubt aware that the Oireachtas committee intends to investigate the whole regime under which licences are granted. Is it his intention to await the conclusion of the report of the committee before issuing these licences in order that we get public agreement in regard to the terms of these licences. There is great concern in regard to this matter, some of it stirred by the Minister’s party when in opposition. The Govern- ment when in opposition and when it came into office spoke about new politics and putting the Oireachtas first. Is the Minister willing to wait until the Oireachtas, through its committee, reports on this issue before issuing these licences? Deputy Pat Rabbitte: As I told the Oireachtas committee concerned last evening, I am more than willing to engage with it for as long as is necessary to review this issue but I am not prepared to delay the current licensing round that has its origins in the changes made in the Finance Act 2008 which Deputy Ó Cuív had the opportunity, when in Cabinet, to approve. I do not wish to delay that as it would introduce a note of uncertainty in a situation which has been disappointing in recent years. On average, fewer than two holes per annum have been drilled over the past decade. At that level of exploration and drilling, it is like trying to find a needle in a haystack. The purpose and motivation of the Government is to increase exploration activity offshore and to explore whether some of the resources we hope are there exist. The strike rate over the past 40 years has been disappointing. In terms of energy security and so on, it is very important we have success and I hope we will. Deputy Éamon Ó Cuív: I am delighted the Minister is now convinced the terms we set in 2008 are the correct ones but he did not believe that when in opposition. As he knows, the disquiet which his party tried to build up when in opposition is fairly pervasive among the public. It seems the Minister is putting short-term expediency ahead of long-term certainty. Will he confirm that if these licences are issued and if an Oireachtas committee subsequently recommends changes, if oil or gas was found, the licences would be under the 2008 terms and that it would not be possible to change those terms in the future? Deputy Pat Rabbitte: I did not make any comment good, bad or indifferent approving or disapproving of the Finance Act 2008. Deputy Ó Cuív was bruiting this about throughout the summer and it is about time he produced some quote from me to that effect. Deputy Éamon Ó Cuív: The Minister’s party did. Deputy Pat Rabbitte: I did not do it. That is the first point. Deputy Éamon Ó Cuív: The Minister’s party did. 2 Priority 14 September 2011. Questions Deputy Pat Rabbitte: The second point is that there is nothing preventing — the former Minister, Deputy Ó Cuív, understands this well — the Minister for Finance of the day address- ing the fiscal regime in any area of the economy which he or she believes appropriate at any time. That applies to this regime as well. That is the competence of the Minister for Finance and it is untrammelled. It is important, now that the evaluation is concluding in my Department, that I get on with the authorisation of this licensing round. It is for a relatively small area, 6%, of the Atlantic margin. Let the Oireachtas committee take what evidence it wishes from whomsoever it wishes and for as long as it likes, and then let it come to conclusions. However, that will take a considerable length of time in my opinion. Deputy Éamon Ó Cuív: Will the Minister recommend that the Minister for Finance change the tax terms for the Corrib regime, since he said that they could be changed at any time? An Leas-Cheann Comhairle: I am sorry Deputy but we are out of time. I am calling the Minister to reply to Deputy Martin Ferris on Question No. 2. Sale of State Assets 2. Deputy Martin Ferris asked the Minister for Communications, Energy and Natural Resources his views on proposals to sell parts of the ESB; if he has made any decisions on this matter; and if he will make a statement on the matter. [23961/11] Deputy Pat Rabbitte: The EU-IMF programme of December 2010 involves a commitment that the Government will outline methods to raise funds through asset disposals. The 2011 budget included a similar commitment. The programme for Government includes an intention to finance investment in the State from the proceeds of the sale of certain State assets. The Government has also considered the report of the McCarthy review group on the sale of State assets and the recommendations of that group. I accept that the fiscal path, to which the Government is committed under the EU-IMF agreement, demands that the option of realising value from State assets be fully explored. I also accept that there is significant value in energy commercial State companies, which could be realised at an appropriate time after necessary further analysis of all the complex factors relating to the disposal of commercial assets in the energy sector. The sale of a minority stake in the ESB as an integrated utility has, this morning, been agreed by Government. This decision is an early demonstration of the commitment by the Government to the programme for Government’s objectives and to its obligations under the EU-IMF memorandum of understanding. This sale will be advanced by means of a defined process involving a full evaluation of the best approach to be taken, including consideration of the size of the minority stake to be sold. That process will be progressed by a group co-chaired by the Department of Communications, Energy and Natural Resources and the Department of Public Expenditure and Reform, also including officials from the Department of Finance and availing of expertise from the National Treasury Management Agency and NewERA.
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