Plans in the Finance Bill for a new tax regime for offshore oil and gas exploration have been welcomed by the Labour Party TD for Dublin South-West Pat Rabbitte.

Minister Rabbitte said: "The proposals keep faith with a government decision that I sponsored in May 2014 when Energy Minister, and derive from the Wood Mackenzie Review of our oil and gas fiscal system presented to me earlier that year.

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"The new regime provides for an increase in the overall State take and an earlier share of the revenue to the State.

"There will be a new tax called the Petroleum Production Tax (PPT) that will apply in respect of authorisations after June 18 2014.

"A minimum PPT payment of 5% will function like a royalty on a field-by-field basis and will result in the State receiving a share of revenue in every year that a field is selling production."

A maximum rate of 55% will apply in the case of new licenses compared with a maximum rate of 40% under the current fixed regime.

(CD/MH)