Ahern denies 'rip-off' over Corrib gas field

A claim by Mr Joe Higgins (Socialist Party, Dublin West) that the State had been "ripped off" in the exploration of the Corrib gas field was denied by the Taoiseach.

Mr Ahern said the Corrib field was being developed under the 1992 licensing terms passed by the House. "Irish licences are similar to those operating in other European countries such as the UK, Denmark and Holland. While the tax rate is lower than in those countries, it reflects the significantly lower success rate of island gas exploration. Unfortunately, this continues to be almost zero." Mr Higgins said Channel 4 television had highlighted the issue. There was probably €1 billion worth of gas in the field. Yet, in the 1980s, the Taoiseach's former colleague, Mr Ray Burke, had varied the licence for the oil companies moving into the field, removing the automatic stake of the State and giving it to them without a penny of royalties.

In 1992, the Taoiseach, as Minister for Finance, had reduced the tax take from the companies to a "derisory" 25 per cent, he added. Also, Minister Frank Fahey intervened in the planning process in Mayo, "bullied the planners and some of the local people in attempting to ram through the plans of Enterprise Oil."