Burke link to oil licences queried

SIPTU has called on the Flood tribunal to investigate Mr Ray Burke's involvement in changing the terms of offshore exploration…

SIPTU has called on the Flood tribunal to investigate Mr Ray Burke's involvement in changing the terms of offshore exploration licences when he was minister for energy in the 1980s.

The union's national exploration committee says the Government should respond to last week's interim Flood report by referring Mr Burke's intervention in the sector to the tribunal. In 1987 Mr Burke significantly eased the terms for oil companies prospecting off the Irish coast. Royalties were abolished and the State relinquished any stake in an eventual oil or gas find.

Last week's interim report from Mr Justice Flood found that Mr Burke acted in the private interests of Century Radio after receiving a corrupt payment of £35,000 from one of its promoters, Mr Oliver Barry, in 1989. He was also found to have received a number of other corrupt payments in the 1980s.

Yesterday the Fine Gael leader, Mr Enda Kenny, called for an investigation into all ministerial decisions taken by the former Fianna Fáil minister during his career. The findings of this investigation should be made public, Mr Kenny said.

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Mr Pádhraig Campbell of the union's national exploration committee said Mr Burke had "scuttled a proper set-up and put in its place an arrangement that greatly favoured the oil companies". This change and subsequent changes should be put on hold until Mr Burke's involvement was investigated.

"I am realistic enough to appreciate that we cannot have our cake and eat it," Mr Burke said on September 30th, 1987, when he announced new licensing terms for the offshore sector.

"Perhaps when we are a recognised oil province, we will be able to afford the luxury of more stringent terms, but for now it is clear that concessions of a radical nature are necessary to offset to the greatest possible extent the effects of low oil prices on exploration in Ireland and the recent disappointing results."

Revised terms for offshore licensing were introduced by him in September 1987. The terms, which Mr Burke described as similar to those in Britain or Spain, meant that any benefits to the State would come in the form of taxation.

SIPTU's offshore committee spokesman said: "These changes and the more generous terms introduced subsequently by Mr Bobby Molloy in 1992 totally distorted the balance in favour of oil companies".

However, a spokesman for the Department of Communications, Marine and Natural Resources said that a view had been taken at senior level at the time that it was important to have exploration, and the decision was taken against the backdrop of factors on the ground, including lack of interest offshore, the price of oil and gas and international trends.

Mr Burke's move in 1987 effectively reversed the terms introduced in 1975 by the Labour energy minister, Mr Justin Keating, which had given the State the right to take a stake of up to 50 per cent in any discovery, and also allowed for the payment of royalties.