In the light of Providence Resources potential find of up to 1.6 billion barrels of oil – up to four times initial estimates, Congress again called for the re-introduction of the 12.5 per cent royalty on the Irish peoples' resources.

Paul Sweeney, Chief Economist, said Congress has long argued that the 12.5% oil and gas royalty tax on production above a threshold should be reintroduced. This should be in addition to the existing progressive but inadequate Corporation Tax regime. It is inadequate because, in the event of a very large oil gas or mineral find, which now appears likely, those resources - owned by the people of Ireland - will be untaxed.

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What is taxed today is only the "profits" on the business of extraction. All developmental losses from other exploration costs can be offset against these taxable profits, reducing them dramatically, sometimes to zero. There are too many exemptions under the current CT regime which can and are manipulated by the accounting profession to reduce this tax to neglible rates.

Mr Sweeney said: "No one in Ireland believes that the accounting profession cannot “magic away” all taxable profits, from even of the largest oil and gas finds. These are the same accounting firms in who told us Anglo Irish Bank was making vast profits for years, who failed “to see” the €87m loan to Seanie Fitzpatrick, who told us AIB, Bank of Ireland and Fingleton’s Nationwide were high profitable. Disappearing vast profits from the books of oil and gas firms with complex international networks will be problem for them.”

"Production taxes – royalties on easily measurable output - are much more difficult to fiddle. That is why oil and gas companies do not like them."

(CD/GK)