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Dáil Éireann debate -
Wednesday, 19 Apr 1972

Vol. 260 No. 4

Ceisteanna—Questions. Oral Answers. - Mining Company Revenue.

14.

asked the Minister for Industry and Commerce the amount, if any, of Government subsidies paid to date to foreign-owned mining companies operating in this country; the total amount of tax-free revenue earned by these mining companies in each of the past five years; and the proportion of this revenue that was re-invested in Ireland.

I take it that the Deputy's question relates to the companies operating the base metal mines at Tynagh, Gortdrum, Silvermines and the reopened mine at Avoca.

No subsidies have been paid to the operators of these mines.

Profits from the working of these mines are exempt from income and corporation profits tax for 20 years from the date of commencement of production. These companies are not required to furnish particulars of their profits for tax purposes or particulars of their profits re-invested in Ireland.

As the operating concerns are private companies, it would in any event be contrary to accepted practice to divulge their individual profits or the proportion thereof re-invested in Ireland. However, I would refer the Deputy to a recent public statement by the Northgate Exploration and Development Co. Ltd. on behalf of the base metal mine operators which gives details, for the period up to the end of 1970, of the profits from the mining operations here, and the allocation of the profits for various purposes including re-investment.

Can the Minister state if the Navan Mines are included?

Can the Minister give the reason why they were not included?

The question was in connection with the amount of Government subsidies paid to foreign-owned mining companies, the total amount of tax free revenue earned by these companies and the proportion of this revenue re-invested in Ireland. As I have already said, there is no question of a subsidy. The Navan Mines have not earned any profits so far.

Would the Minister not agree that the mining business is a high-risk business from the point of view of money investment and that we are fortunate in this country to get people to invest their money in such projects? Further, would the Minister not agree that Irish people are entitled to invest their money in these projects if they wish to do so?

I would say the Deputy is speaking a lot of sense.

15.

asked the Minister for Industry and Commerce whether the Government has considered setting up a commission to examine the possible establishment of a State mining company to prospect for, extract, smelt and market the mineral wealth of this country to ensure the retention of revenue gained from such operations in Ireland.

In the 1940s and early 1950s the State did, in fact, participate directly in mineral exploration and development through State-sponsored companies but this policy did not meet with any success. It was in the light of this experience that it was decided to bring the operations of the State-sponsored company, Mianraí Teoranta, to an end in 1956 and to adopt the present policy of offering incentives to competent private enterprise as the only practical way to ensure the thorough exploration and use of our mineral potential.

I am having a review carried out of royalty and taxation arrangements in regard to mining. In the light of this I will consider what long-term fiscal policy for mining would be best suited for the future. Such a policy should give the State an equitable share of increasing profits while at the same time being sufficiently attractive to the mining companies to ensure the continued development of the country's mineral resources in an orderly and efficient manner and lead to the establishment of a smelter and other associated industries.

In the circumstances, I have at present no plans for setting up a commission as suggested by the Deputy.

Would the Minister not agree that there is considerable public disquiet that so much wealth from these mines is being shipped out of the country? Can the Minister give us some indication when this review will be carried out and when a report will be available? The Minister may be aware of the fact that these mines have a certain period of life and if the review should take a long time a considerable amount of the wealth of the country would be gone. Will the Minister consider this matter as one of urgency?

I am aware that at the present time there is a considerable effort being made to create unrest in this regard. As I have indicated in reply to the question, I am having a review carried out of royalty and taxation arrangements. I have indicated that I do not propose to set up a commission with a view to making recommendations on nationalisation as such. I consider that far too many wrong claims have been made in connection with the amount of money being made by the people involved in mineral exploration here. In view of the fact that Tara Mines have not commenced operations yet, all allegations about the profits it is stated they will make must be purely speculative.

Would the Minister like to comment on the statement that has been made that the Tara Mines are the largest in the world?

I hope they will be.

In view of this, would the Minister not think that something more positive than a review of the tax structure and the arrangements is necessary? In the interests of the country, would the Minister not consider that something positive should be done so that we can have a proper social welfare service in this country?

I can fix royalties in connection with Tara and this is what I have been endeavouring to spell out.

It seems to me the Minister is trying to hide something.

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