Deputy Seán Byrne has been given permission to raise on the Adjournment of the House the closure of Tipperary Anthracite Limited. He has 20 minutes.
Adjournment Debate. - Closure of Tipperary Anthracite Mines.
First, I should like to thank the Chair for allowing me to raise this subject. I wish to share my time with Deputies Griffin and Seán McCarthy. Unfortunately, Deputy Seán Treacy is not available.
These mines have been closed for almost seven months with the loss of 120 jobs. Much hardship has been suffered by the work-force during those seven months, with the uncertainty up to a week ago as to whether the mines would reopen. They are a very experienced mining staff and this is a great blow for the area. I raise the matter to ask what the Minister can do about the situation. I am sure that he will do what he can to see that the jobs are secure.
There is sufficient anthracite in the mines to keep them in full production for at least 20 years. That has been proved by various surveys carried out in connection with these mines by successive Governments over the years. Massive injections of public funds have also been put into these mines by successive Governments. It is rather sad to see them closed down now. The orders from the Irish Sugar Company alone would be sufficient to keep the mines open and in full production for many years to come. There have been no problems at all with the markets. What efforts has the Minister been making in the last few weeks? I would appeal to him to do everything possible and as soon as possible to have the mines reopened. We have been living in hope in Tipperary. The Oireachtas Members in the area, the trade unions, the workers and the management have tried to find some solution to this great tragedy, but just a week ago we heard the very bad news that promised funds from the people who were interested in keeping the mines in operation have not materialised.
I should like to thank my colleague, Deputy Seán Byrne, for allowing me to take some of his time in speaking to this motion, and in thanking the Chair for allowing us the liberty of raising the matter.
This is a very vexed and imminent problem in south Tipperary and, indeed, areas far beyond the constituency of south Tipperary. Tipperary Anthracite Limited are an operating company wholly owned by Flair Resources, (Ireland) Limited which are, in turn, a subsidiary of Flair Resources Limited of Canada and have a very long, chequered and difficult background and history. In dealings with this mine the one dominant feature of the history was the many openings and closings, many financial embarrassments and total uncertainty about the continuation of mining this very valuable natural resource. Tipperary Anthracite Limited are now the operating company. The mines have been closed for the past seven months. A skeleton staff were there up to three or four weeks ago, just maintaining the machines and preventing the mines from being flooded. Unfortunately, insurance cover ran out and the miners were not allowed to keep the pumps in operation and we have the sad plight that these very valuable mines are flooded.
All interested groups, particularly the workers, the trade unions and the Oireachtas Members of all parties, have met on numerous occasions in Killinaule to try to see what could be done to resolve the situation and, above all, to keep the mines in operation.
I should like to emphasise that the miners and their families are the main sufferers in this case, especially coming up to Christmas, with the lack of finance and the general uncertainty of their future. It is primarily on their behalf that we speak here tonight. There has been a very experienced mining operation in that area down through the years. They were not interested in receivership or in liquidation. Their primary concern was the continuation of their jobs to see that the mines could be kept in operation and, as far as possible, to bring them back into full production. Unfortunately, all the efforts to date by management have proved fruitless and money which was promised week after week has failed to materialise. I understand that last week there was a petition for liquidation by the solicitors on behalf of the Revenue Commissioners. If my information is correct there is to be a hearing in the High Court on Monday, 17 December. Unless there is an appeal for an adjournment on behalf of Tipperary Anthracite Limited, the mines will surely go into liquidation. It would be a great pity if this should happen because feasibility and other studies carried out by reputable firms experienced in these fields have indicated that there are at least four million tonnes of recoverable anthracite in these mines. This is valued at roughly between £20 million and £29 million. It is an incontrovertable fact that there could be employment for a work-force of 120 for the next 20 years in that mine. I am also reliably informed that it is one of the finest mines in Ireland.
Our Minister of State, Deputy Eddie Collins, is here this evening and our plea to him is to see if he can, through whatever agency, semi-State or State, rescue the mines and ensure their reopening. I understand that the IDA and Fóir Teóranta have been very helpful in the past and that the Revenue Commissioners have been more than sympathetic. However, I am told that there is a figure of £1.3 million outstanding to the Revenue Commissioners in this regard. When there was any prospect of moneys coming up, they stayed their hand but unfortunately a Doomsday situation has arisen for Tipperary Anthracite Limited and unless there is a prospect or promise of moneys again being produced before 17 December the mines will go into liquidation. At that juncture I would be fearful for the jobs of the miners who face unemployment for the rest of their lives.
This is a disadvantaged area and it will be virtually impossible to attract alternative industry if this very fine national resource collapses. I join in my plea with my colleagues, Deputies Seán Byrne and Seán McCarthy, and in his absence Deputy Seán Treacy who attended all the meetings and was very concerned, like all of us, for employment opportunities and for the livelihood of the miners of Tipperary Anthracite Limited.
I urge the Minister, if at all possible, to give further assistance even at this late stage. Perhaps events have overtaken us and the mine is on its inevitable way towards liquidation. Whether it can be stopped at this juncture, I do not know. Perhaps the Minister will inform us of the legal position at this juncture. I am not aware if the Minister can act at this stage, but if the company goes into liquidation I hope he will use the full resources of his Department to ensure that the mine will be reopened under new management and that the valuable resource of four million tonnes of anthracite will be made available to the economy with the attending advantages of continued employment for the work-force in Ballingarry.
I appeal to the Minister to be mindful and sympathetic to our plea on behalf of the work-force and the creditors. We are informed that there are some creditors and the prospects of them receiving anything worthwhile are minimal if the company goes into liquidation. I know a number of these creditors and they can ill-afford this liquidation. I appeal to the Minister to take these facets into consideration and continue his efforts to ensure that the mine will be put back into production as quickly as possible.
I thank my colleague, Deputy Byrne, for allowing me a few moments of his time. I join with Deputies Byrne, Griffin and Treacy — I know he has a great interest in this — to see if we can salvage the wreckage of Ballingarry mines which is run by Tipperary Anthracite Limited. We all worked together but unfortunately the tide was flowing against us and the company all the time. The inevitable now seems about to happen on 17 December when the High Court will almost inevitably see that the company is put into liquidation.
This area is one which has a historical tradition of anthracite mining. Most of the families there are what are known as mining families. They would not know how to do anything else. The tradition has been passed from grandfather to father to son and a great degree of expertise and commitment was built up by these families over the years. It is very sad that these people will suffer most as a result of the inevitability of the situation now.
I know the Minister will, as far as he can, do everything possible to see if this can be salvaged. I recognise as much as everyone else that his task will not be easy. Even after the company has been liquidated perhaps some mining organisation might be found to take over the mine and give the workers the right to work it properly without fear of collapse. Unfortunately the mine has had a chequered economic history. This is not the first time this type of thing arose there. What amazes me and my colleagues is that over the last few months many of the workers have continued to work there despite the fact that they were not being paid. Their commitment was such that they were prepared to work without pay. Very ofter we are inclined to indulge in a bashing of workers. If anyone had been tempted to do that they should have gone to Ballingarry in the last few months and observed the behaviour of the workers and the way they worked without being paid. It would have changed their minds.
The Minister should bear in mind, when he is considering how to salvage the mine, that this is a viable natural resource producing a commodity for which there is a high demand. It is top quality anthracite. There are sufficient amounts, approximately four million tonnes, to give the mine a life viability of 20 to 30 years. Some say it will have a viable life of 40 years. These assessments have been made by independent mining experts. Several of them made surveys. These surveys have been done by personnel outside of the State who are not connected in any way with the firm running the mine.
Since we have such a resource, there is an obligation on us as politicians to do what we can to keep it alive in whatever way we can. I know the Minister will do what he can when the time comes. I recognise that the workers have gone through a difficult time, as have the creditors and the Revenue Commissioners. They have all shown remarkable fore-bearance in holding back and in ensuring that they did not do anything to jeopardise the future of the mine.
Unfortunately it appears as if the workers and creditors have to some extent been misled by the company. There were promises on a day to day and week to week basis of copious amounts of money being made available which would ensure not just a continuation of work for those there but perhaps an extension of the mine to provide jobs for other people. It now appears that they were false promises, and many people were deluded. It is unfortunate and sad that any company should delude people whether they be workers, creditors or the Revenue Commissioners. Something that must be observed is the basic precedent of honesty, and that did not happen in this case. I appeal to the Minister to do what he can in the circumstances and see if he can ensure that this valuable national resource is continued for the mining families in south Tipperary for the good of the country.
Like the Deputies who have contributed in a constructive way to the debate I am aware of the long tradition of mining in Ballingarry. All Deputies are aware of the recent troubled history of the Ballingarry mine. I appreciate that the mine made a significant contribution through the years to employment in the area and that its closure would be a serious blow to the area generally. I fully accept that it may be difficult if the mine was not re-opened to get alternative employment for the many families whose tradition has been in mining. In 1982 the then Minister agreed to the assignment of the State-mining lease to the present operators. This has been in the hands of a receiver for a considerable number of years following the closedown of a previous operation. Considerable thought had been given to the matter at the time. I had hoped that a continuing viable operation would be established at Ballingarry.
I understand that the mine closed in June 1984, due to the lack of funds and the fact that further funding failed to materialise following protracted negotiations with a finance house. I was following those negotiations in the course of this year. I had been informed that the negotiations are to acquire funding to satisfy creditors. I must say to be honest with the House that the debts of the company, the amounts owing to creditors, are very substantial. I would be less than honest if I said anything else. Deputy Griffin mentioned the amount owing to the Revenue Commissioners which indicates the gravity of the debts owned by this company. I would point out in fairness that negotiations are going on at this time with a mining company and I cannot give an indication whether those negotiations will be successful.
While the mine is flooded at present, I am advised that this situation will not result in any serious damage to the mine for the next two to three months. If operations were to resume at the mine within this period, I am informed that the mine could be restored to working order within two or three weeks following pumping and repair work. Needless to say, in view of the situation I will be keeping in close touch with the mining company with regard to continuing negotiations and monitoring of the flooding.
While the Minister for Energy approved the assignment of the State mining lease to Flair Resources (Ireland) Ltd., the parent company of Tipperary Anthracite Ltd., he has no stake in either of these companies which are privately owned. The Minister's role is merely to grant the mine a lease to work State-owned minerals. The State does not operate any mine.
In view of the importance of the mine to the Ballingarry area and of the difficulties which the company are experiencing, there has been support from State agencies for its operation. It is important to point out that the IDA and Fóir Teoranta have given support. Indeed, it is fair to say that there has been substantial assistance in the form of grants and loans from the IDA and Fóir Teoranta.
It is proper to point out that the basic problem is under-capitalisation. Another aspect of the activities of the company is that they failed to raise production to a level that would be viable and profitable for them. Of course, the kernel of any commercial mining operation is that the production at the mine would have reached break even levels or levels sufficient to generate cash to ensure the mine company's survival. It is essentially a commercial decision whether the company would continue. Substantial funds will now be necessary to ensure that the mine will be reopened, or if it is liquidated — I understand that the Revenue Commissioners are petitioning the court for its liquidation in December — there will be need for a substantial new capital injection. I hope that the negotiations going on at present will be successful, but it is too early yet for me to be able to decide or to indicate to the House on the outcome of those negotiations. The company were not successful because their management failed to raise production to a viable level to secure the continuing financing of the company.
It is a difficult situation. I do not wish to minimise it either from the point of view of business because it will require substantial revenue, or of the social effect on people living in the area which I realise is very serious. The employment was about 110 men rising to 130 at peak point. This is a commercial operation. It requires commercial acumen and decision for commercial companies to invest in the mine. If there was sufficient investment and raising of production to a viable level the mine could be viable in the long term, but it is not up to the State to make that decision. It is up to investors in the commercial world to do so. I hope that the outcome of the negotiations going on at present will be successful.
I came to object to the denial to me of facilities to raise matters on the Adjournment of the House and the treatment of general questions on transport matters put down by me.
I can allow only one question at a time.
The Dáil adjourned at 5.30 p.m. until 2.30 p.m. on Tuesday, 4 December 1984.