Fine Gael Cork South West Deputy, Noel Harrington, has welcomed the commitment by the Minister Communications, Energy and Natural Resources, Pat Rabbitte TD, to undertake a review of the fiscal terms for oil and gas production, saying this could go a considerable way to increasing the confidence of the oil and gas exploration industry and attract future investment in Ireland.

Deputy Harrington went on to say that said the report which was produced by the former Joint Committee on Communications, Energy and Natural Resources, of which he was a member, has been well received by the Minister and should encourage development in this area.

-- Advertisement --

Mr Harrington said: "The last review of the fiscal terms for oil and gas production in Ireland took place back in 2007. With this in mind, and following on from receiving the Committee's report, Minister Rabbitte has committed to seeking further advice on the fitness of purpose of the terms to balance the interests of the industry to encourage future investment and the interest of the State in this area.

"The potential for offshore development in Ireland is largely unknown, as exploration has been slow to date. As Minister Rabbitte has pointed out, the hopes we had for oil and gas exploration in the 70s has never been realised and we need to look at the reasons why.

"The cost of drilling without knowing the chances for success is, unfortunately, beyond the State’s means. However, more could be done to encourage others to invest, with the potential for financial gain for the State."

(CD/MH)