12 July 2001 Edition

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Burke gave away the family jewels

RTE for once got a good press in the West last week over its Prime Time Programme assessing the costs and benefits of bringing Corrib Gas ashore under the terms former Minister Ray Burke agreed with multinational consortium Enterprise Energy Ireland, Ltd (EEI).

``They were going to pull the programme,'' says Miceál Ó Seighin, a local schoolteacher who, like most other people in the Erris area of Mayo, strongly opposes the gas coming ashore. ``The programme was too one sided they said. Of course it is,'' says Miceál, ``but then the arguments are all on one side. That is just the way it is.

``There really is no convincing argument that EEI, or the current Minister Frank Fahy, can present to justify ``the sweetheart deal'' Minister Burke negotiated with EEI. In Norway for example, the exploration companies have to pay 78% tax. Ireland negotiated a 25% rate, which most experts agree will never be paid, given the opportunity afforded to EEI to write off capital costs and losses against tax liability. There are no royalties to be paid, and the State will finance half the cost of the pipeline which EEI needs to connect the gas to the national grid at Galway.''

Minister Fahy reiterated the mantra `Corrib gas is the best thing ever for the West but in fact, Ó Seighin points out, the benefit to the West, or even the country as a whole, will be no more than buying in gas on the pipeline from Norway or Russia, and that will come without the terrible environmental damage that the Terminal cleaning plant promises to cause''.

Journalist Frank Connolly on the Prime Time programme explained how Minister Burke had taken the unprecedented step of personally taking charge of negotiations and was insistent, and at times even abusive to his officials who were less willing to grant such generous terms to the consortium.

Caoimhghín Ó Caoláin TD, when calling last May for an inquiry into the deal, said ``it could emerge as one of the greatest scandals ever''. But so far Minister Fahy is virulently opposed to any enquiry, and still less, any renegotiation of the sweetheart deal.

Both Minister Fahy and Brian Ó Cathain, Managing Director of EEI, spoke stridently on Mick Peelo's programme against any renegotiation, because ``it would discourage further exploration''.

Meanwhile Mayo county council has asked EEI to furnish further detail in its environmental impact study. In particular, the planning department is concerned about the effects the terminal's waste water and run off will have on the lake at Carrowmore, which is the source of Erris area's drinking water. So far, EEI has not supplied answers to the council's request.


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