McDowell is wrong on Corrib gas

February 19, 2007 at 2:21 pm | Posted in Statements | 1 Comment

Statement February 17^th, 2007McDowell is wrong on Corrib gas  

At the PD Party Conference yesterday, party leader Michael McDowell again made reference to the strategic importance of developing the Corrib gas field. He was also critical of those political parties who are supporting the campaign against the present development proposal.

 

Mr. McDowell is simply wrong on a number of grounds. First, opposition to the Corrib gas development is not centred on stopping the development of gas but on the specific processing proposal being made by Shell.

 

Second, no strategic importance to do with the project has ever been demonstrated. Is it security of supply? No, because Bord Gas makes it quite clear that most Irish gas comes from the North Sea and that there is no medium term threat to the continuity of those supplies. Is it lower cost? No, the price of gas is determined by global market forces and Corrib will be purchased at full market price. Are there significant financial benefits to the State? Again no. No royalties are being extracted, no equity share taken, no windfall tax levied. All exploration and development costs can be written off against tax at 100% from year one. Thus very little financial benefit will arise. Might there be jobs from the project? Minimal, other than in the short-term construction of the plant. Once the plant is operational only fifty jobs will be needed. The companies are not obliged to employ Irish workers on their exploration rigs nor do they have to source their supplies from Ireland.

 

I challenge Mr. McDowell to deny these facts or disprove them. The reality is that instead of securing an indigenous gas supply that could be strategically utilised and be a source of national wealth, the Corrib gas has been privitised and is in effect another source of imported gas to be bought at full market rate. Assertions and bluster to the contrary won’t obscure the woeful government mismanagement of this resource.

For verification or comment contact Mark Garavan 087-9023687

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