|
Madam,
Recently I
attended an amazing meeting regarding the gas Terminal in the Erris region in
north Co. Mayo. Many of us in attendance, although interested in the
environmental affects, were also interested in the economic benefits for Mayo,
Galway and the country as a whole. Following this, my interpretation of
the economic history of the project is as follows:
Enterprise oil
commenced lobbying of Politicians and Civil Servants around 1985.
Due to a world
slowdown in exploration and production, Dick Spring in 1985, modified the 1975
terms to allow for a sliding scale of royalties and State participation
while at
the same time protecting Ireland's interests.
In 1987, Ray
Burke against the advice of one of the most senior civil servants in his
Department met with the oil companies and completely changed the philosophy of
the oil and gas legislation by getting rid of Ireland's 50% stake in a
discovery; abolishing royalties an introducing massive write-offs for the oil
companies.
In 1992 Bobby
Molloy, reduced the oil/gas tax rate to 25%, the lowest in the world. 100% write
offs were introduced for the oil companies and so-called "Frontier Licenses"
were introduced that allowed the oil companies up to 20 years to hold a license
on a particular offshore block, i.e. a designated drilling location.
The
pre-election Fianna Fail led Government asked the Corrib North Consortium to
re-route their gas pipeline from going directly east to Dublin and instead route
the pipeline to Galway , creating the illusion that the market towns of Mayo and
Galway would get gas. Enterprise and its partners agreed to this on condition
that the State, i.e. the Irish taxpayer via An Bord Gais pays for the pipeline.
The Government readily agreed to this request.
Minister Frank
Fahey in 2001 gave Enterprise Oil a petroleum lease which gives ownership of
Ireland’s west coast gas to them and their partners. This was given even though
there was
the
An Bord Pleanana appeal pending taken by residents of the Erris region
of north Mayo who are objecting to a massive outdated Gas production facility
being foisted upon them by the oil companies and the State.
In the 2001
Budget, 25% Corporation Tax was reduced to 16.5% which will finally be reduced
to 12.5% at the behest of the oil industry. In contrast, Norway’s oil/gas rate
is 78%, with a 7% royalty rate. There is a 50% automatic State stake in any
discovery in Norway.
On May 17, 2002 – Election day, Frank Fahey quietly slipped a ninety year
foreshore license through to Enterprise oil. A private company, for the
first time ever, can now issue c.p.o’s. against land owners.
The oil / gas consortium estimate that
ongoing employment would be "in the region of 50 to 65 people, most of whom
would be “likely to reside locally". This does not tie in with their track
record of employing foreign as opposed to Irish Nationals.
It is rumoured, that the An Coilte
forest in the vicinity of the terminal was sold for the princely sum of one
pound. Could someone deny this rumour if it is untrue.
As the most recent Minister compliant
in the great give away of one of Ireland’s natural resources, I would like to
ask Frank Fahey the following questions:
What’s in it for Ireland and it’s
economy ?
What’s in it for Mayo and Galway ?
If he can’t answer ant of these
questions, then perhaps he could say what’s in it for him and the other
politicians who participated in this give away because I simply don’t get it.
Yours,
Kieran Cunnane,
Renmore,
Galway.
|
