asked the Minister for Industry and Commerce when production will commence in the Bula mine in which the State has a 49 per cent shareholding; the mining method to be used; and the rate of extraction.
42.
Ceisteanna—Questions. Oral Answers. - Bula Mines.
41.
asked the Minister for Industry and Commerce the names of the sellers or the beneficial owners, if these are different, of the shares which he is purchasing in Bula Mines Limited.
43.
asked the Minister for Industry and Commerce the yield to be expected on the State shareholding in Bula mines; and for how long it will be payable.
44.
asked the Minister for Industry and Commerce if his Department threatened to prosecute a newspaper (name supplied) under the Official Secrets Act if it disclosed certain facts about the State's involvement in Bula Mines Limited; and, if so, why.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 41, 42, 43 and 44 together.
These questions refer to a matter which is the next business of the House and I propose to deal with the points raised in the debate on that business.
I am entitled to have this information, having put down the parliamentary questions. The whole point of the exercise was to elicit the information before the debate so that I might be prepared adequately for the debate and that it might be more meaningful and useful for the country as a whole. It is not enough to say that because a debate is to follow the Minister is not answering the questions. Consequently, I would ask him to give the answers now.
My position is that these questions were Nos. 41 to 44 on the Order Paper and would not have been reached had it not been for the withdrawal of a number of Education questions. I anticipated the questions coming up during my Second Reading speech and would have answered them then with the object of giving the Deputy the information as quickly as possible. However, I am happy to give him the information now. If it is acceptable, I will tell him now what I would have been telling him in a few minutes anyway.
I should be glad to have the information now.
The reply will be somewhat more lengthy than is usual.
Reference is made to the method to be adopted for developing the mine, the start-up date, the rate of extraction of ore and the return on the State's investment. The planning aspects of the development of the mine are, as the Deputy concerned is aware, matters to be dealt with by an existing and well-defined statutory procedure which I understand is at present in progress. I have no wish to be drawn into a debate on this issue or of saying anything which could be prejudicial to this statutory process.
The profits from the mine and, therefore, the rate of return to the investors will be affected by a number of factors as well as by the method of development adopted and the rate of extraction achieved. To predict the rate of return, therefore, one must look, not only at certain things which lie in the present and in the immediate future, but also at factors which will vary over a span of time extending many years ahead.
I have had an examination of this kind carried out and I am assured that the return on the State's investment will be substantially in excess of the rate which published financial indices indicate can reasonably be expected from an equity investment. I would point out that this analysis relates only to the 24 per cent interest being purchased by the State. If account is taken of the dividends receivable on the 25 per cent unpaid interest then, of course, the overall rate of return is far higher. I would emphasise that I have confined myself to the direct financial return on the State's investment. This, of course, is very important. But investment by the State in the development of a country's natural resources will always have a number of other objectives and these add a further bonus, on a number of counts, to the State's financial return.
I have been asked also to name the sellers or the beneficial owners of the shares being purchased. The agreement to buy and sell the shares was between the Minister and the shareholders of Bula Limited. The shareholders are defined in the agreement as Bula Holdings, a private company, and Mr. Patrick Wright, now deceased. The definition in section 1 of the Bill refers to "certain other parties" to the agreement. These parties are defined in the agreement with Bula as covenantors and, in effect, they are the guarantors of performance of the contract by Bula Holdings. The names of the covenantors are: Thomas C. Roche, Thomas J. Roche, Michael J. Wymes and Richard F. Wood.
The second part of this question is who are the beneficial owners of the shares which I am purchasing. Mr. Wright is now deceased and I presume that the beneficial interest now resides in his estate. So far as Bula Holdings are concerned they are, as far as I know, the beneficial owners as well as being the registered holders of the shares. The disposition of any assets of Bula Holdings is of course, a matter for determination by the shareholders of that company.
There is a further question on the Order Paper which implies that a threat was made to a particular newspaper that the publication of a certain confidential document related to this case would give rise to the Official Secrets Act being invoked. I can say that no threat was made.
If a public servant is informed that an official document of a confidential kind has been made available in an unauthorised manner and may be made public, it is his simple duty to inform the party involved that a criminal offence may have taken place under the relevant Act. In the case referred to, this procedure was followed after appropriate consultation with the Attorney General. The Press and other public media in this country have generally maintained strict standards in matters of this kind and I am sure that, far from regarding such a communication as a threat, they would regard it as right and proper that they should be informed of the possibility that a criminal act was involved. Indeed, the newspaper in question said, in an editorial on the matter, and I quote:
A criminal offense is possibly involved and obviously no responsible newspaper would willingly flout the law.
The Minister might have saved himself the trouble because he has not given me an iota of information despite the fact that I tabled these four questions. I anticipated this but I suppose we had better go through the charade that follows.
The remaining Questions will appear on tomorrow's Order Paper.