This Supplementary Estimate W—Castlecomer Collieries Ltd., is necessary to provide financial assistance to Castlecomer Collieries Ltd. to enable them to continue operations during the period of certain explorations for extractable coal; and also to meet certain obligations to the National Bank Ltd. incurred earlier by the Minister on behalf of this company.
As I informed the House on 15th July, 1965, the Castlecomer Collieries were being closed down in 1963 because of total uneconomic working. The Government were very concerned with the grave social problem which would follow this concentrated unemployment, and arrangements were made to assist the company in securing further accommodation from their bankers. It was thought at the time that the difficulties were only temporary and the aim of this assistance was to facilitate continuing operations while fresh workings were being investigated for increased output. The investigations were not successful and losses continued. The losses were met by loans to the company by the National Bank Ltd., amounting to £60,000 under a guarantee from the Minister for Industry and Commerce. These advances with accrued interest have now to be repaid and an estimated sum of £65,000 is sought for this purpose.
In spite of the continuing losses the Government decided that the abandonment of the industry without an exhaustive survey would not be justified, and the company engaged the services of a firm of international experts to make the examination. Their report, in brief, was that there was no prospect of the mine being worked on an economic or commercial basis. It did not rule out the possibility of finding coal in one particular area which could be economically extracted but considered the cost of the exploratory work would not be justified as a commercial risk.
In the light of this report there could be no question of the management or the State accepting responsibility for continuing heavy losses. The mine was, therefore, closed at the end of July, 1965 and all but a skeleton maintenance staff were notified that their employment had been terminated. At the time of this closure the company had urgent liabilities for wages, electricity etc. amounting to £16,500 and these were met by direct loans to the company from the contingency fund. It is now necessary to repay the advance from the contingency fund which was used for this purpose.
The Government were gravely perturbed about the social problem created by the closure and after consultation with the interests involved it was agreed to consider any proposal that had even the possibility of future viable working. The Irish Transport and General Workers Union, acting on behalf of the miners then had a survey carried out by a second firm of technical experts. This report recommended the reopening of the collieries while the area referred to in the earlier report was explored in order to determine if there were, in fact, any coal reserves which were economically extractable. The recommendation provided for the re-employment of about 190 men for at least six months.
Despite the considerable sums of public money already committed on social grounds, to maintain this enterprise in operation, the Government decided that the social considerations involved justified the acceptance of the recommendations in the further report, and in fact the mine was re-opened early in November. To provide for losses which may arise during these operations an estimated sum of £50,000 is sought, plus a contingency provision of £8,500. These sums together with the amounts already made available in the forms of loans and advances from the contingency fund give a total of £140,000.
It has been arranged that the various moneys involved will be made available to the colliery company as an unsecured loan, to be repaid if profits become available.
The House will appreciate the uncertainties involved in mining operations and it must be accepted that there is no certainty that the scheme now on trial will result in a situation where the continued working of the mine can be justified. I sincerely hope that the results will be favourable.
With regard to Supplementary Estimate R—St. Patrick's Copper Mines, Ltd.—offers were sought in 1954 for the State's interest in St. Patrick's Copper Mines, Ltd., from private mining concerns willing to undertake a satisfactory scheme of exploration and development of the mines, which are being maintained on a care and maintenance basis at a cost of about £50,000 per annum. The sum provided for care and maintenance in the 1965/66 Vote was limited to £12,500 as it was hoped that a decision as to the disposal of the mines would be made by 30th June, 1965. Various offers for the mines have been received and considered but no satisfactory arrangement for the disposal of the property has yet been concluded. I ask the approval of the House for a Supplementary Estimate of £37,000 to meet the cost of care and maintenance of the mines up to 31st March, 1966. I am hopeful that a satisfactory arrangement regarding the disposal of the mine may be finalised before that date.