Deputy Albert Reynolds has been given permission to raise on the Adjournment the subject matter of Question No. 21 on today's Order Paper. He has ten minutes and the Minister has five minutes.
Adjournment Debate. - Leinster Coalfields Mining Licences.
Thank you for giving me the opportunity of teasing out this problem which arose today at Question Time in relation to licences that have already been granted to Amble Resources Ltd., and another licence that is under consideration to be given to them. I wanted the Minister to clarify some points today. He did not clarify them too well and perhaps he will take the opportunity to state his position clearly and unequivocally here tonight.
First, was he aware of the seriously misleading and inaccurate information given out by Amble Resources Ltd. to the Vancouver Stock Exchange? The first instance was on 9 October 1985. Unfortunately, in the time I have available I will have to be very short and make a synopsis of the main points. The first was a news release on 9 October issued to the Vancouver Stock Exchange, quite clearly in an effort to lure investors to invest in this new venture which was to take place in Ireland. It said:
Amble Resources Ltd. in conjunction with Tenquille Resources Ltd., has an option to acquire Cliffbourne Mining Ltd., a producing anthracite mine in the Leinster Coalfield, Republic of Ireland.
In addition applications have been submitted with favourable response for the balance of the Leinster Coalfield...
Drill indicated recoverable reserves exceeded 10,000,000 tons of anthracite.
I take those two extracts as an example of the misleading and really false information which has been given. In the first instance, to make a statement on 9 October that applications had been submitted, with favourable response, to the Department is clearly inaccurate. As I understand it — perhaps the Minister will tell me if I am wrong — the Department did not receive applications until 28 October.
Secondly, "Drill indicated recoverable reserves exceeded 10,000,000 tons" again is clearly inaccurate. That figure should read 5.15 million tons. There are other inaccurate statements and I have not time to go through them all tonight. Those two are quite clear.
Subsequently, on 19 December a further news release to the Vancouver Stock Exchange stated that Amble Resources Ltd. had recently completed the acquisition of prospecting leases in the Leinster coalfield near Kilkenny in the Republic of Ireland and that a recent telephone communication from the Department of Energy of the Irish Republic confirmed that other substantial areas and leases were to be made available to Amble Resources and negotiations were continuing. They repeated the measured reserves of 10 million tons. Quite clearly they are carrying through the misleading information.
I asked today if the Minister knew, when he entered negotiations, about the false statements they were issuing to the Vancouver Stock Exchange. He appeared to indicate today that he knew but was not holding it as any obstruction in the way of granting licences. Further, I asked the Minister today and I repeat the question here tonight, if he knew that another company called Boulder Mountain Resources Ltd. operated by Mr. Reid, who was the president of Amble Resources, had their dealings suspended by the Vancouver Stock Exchange last year. Clearly this information is available to anybody who wants to look around the Vancouver Stock Exchange and public releases in Canada because those were public statements issued.
I would like the Minister to clarify that at some subsequent date he became aware of and contacted Amble Resources Ltd. to clarify the position. They say in a news release of 29 January 1986:
The Minister for Energy is giving active consideration to an application by Amble Resources Limited for a prospecting licence in relation to a fourth area...
Quite clearly licences for the three areas had been issued before 29 January. Perhaps the Minister will tell us tonight when they were issued and what information was available to him when he issued them. If the information I have read out here tonight was available to him, I suggest to him that it raises a serious question as to why they should have been given licences in the first place.
No company should use the good name and reputation of the Department of Energy to try to convince people in Canada to invest money in this kind of proposition, giving wrong data and totally misleading information. Does the Minister accept and agree with that? If he does, why did he issue the three licences and does he still propose to issue a fourth licence? Only last Friday the Department said that the Minister's readiness to give prospecting licences to Amble Resources Limited and to agree in principle to the assignment to Amble Resources of the Rossmore leases implies that he does not see any grevious fault. I ask the Minister to explain how it is not a grevious fault to issue false information, not once or twice but three times, to potential investors on the Vancouver Stock Exchange.
It is very difficult sometimes to know what is happening on that stock exchange so it is important that the Minister should be extremely careful when dealing with these companies. Despite what the Minister tried to intimate here today, it is quite clear that Mr. Reid, with his other company Boulder Mountain Resources, were suspended from the stock exchange. It also appears that the Vancouver Stock Exchange are interested in talking to Mr. Reid about the inaccuracies which occurred in these statements. The Minister must now clear the matter once and for all and, if he does not, people will think that this country can be used to set up that type of deal and lure investments from Canada. That will not do the Minister, me, this House, the country or the Department any good. The company have issued statements such as the following:
The leases have been confirmed by the Irish Government agencies and are in the possession of Amble Resources.
That is an extract from a statement of December 19. The Minister knows it is wrong and so do I. What did he do about it? Why did he issue licences to a company like this? If he did not know the facts, why not? If he did, perhaps he will explain why he continues to try to oppose the real facts of the situation which are available to anybody.
There are other inaccuracies in the statement in relation to the amount of waste available in two of the early press releases. These refer to a very considerable amount of waste which could be used in briquette manufacturing. The Minister knows that there is no waste available in that part of the Leinster coalfield. The waste that is available and could possibly be used for manufacturing coal briquettes is in other areas and belongs to a different company. That clearly establishes that the company were trying to puff up the case to try to convince would-be investors.
I understand that the Minister met Mr. Reid and perhaps other officials in the past week or so. Perhaps he will clarify how he managed to give licences to this man, in view of the facts. If the Minister does not know all the facts, I shall be only too glad to give them to him. It is very curious that he sought during Question Time in the House to explain that a writ may be issued to stop any further discussion on this matter. How would the Minister know that unless the Government are going to issue one? If it is a second or third party writ, how could the Minister use that phraseology in this House? Those are unanswered questions. The Minister has five minutes of uninterrupted time to clear the air and I hope he avails of it. If he does not, that will raise more serious questions which will have to be confronted at a future date. If it is a Government writ, I would be glad to hear it, but if not, the Minister should beware. This could be his Westland.
Deputies
Hear, hear.
The Deputy opposite is very well informed. I wonder about the source of his information. I want to put this matter in perspective. We are talking about a mine in Rossmore which employs 52 people and is in serious financial difficulties. A company called Amble Resources Ltd. became interested in acquiring the mining rights to this company and approached my Department. Having considered the matter and with a view to ensuring that mining would continue in Rossmore, County Carlow, and with a view to ensuring that the 52 jobs would be preserved, I gave a conditional approval to the transfer of the mining lease from Cliffbourn to Amble Resources Ltd. That is a responsible thing to do and in the best interests of the workers and of ensuring continued mining in Rossmore.
I am quite surprised by the attack launched by the Deputy opposite on proposed investment in the mining company in Ireland. We made diligent inquiries about allegations made against the firm in question, even to the point of consulting the Vancouver Stock Exchange. As far as we can ascertain, there is no reason why they should not get the facilities that they have asked for to keep the mining project going and in relation to the prospecting licences that they should not be allowed a licence to prospect for further coal reserves in the area. I cannot refrain from saying that in the normal course we in this House always make a point of welcoming investment, whether from Irish or foreign sources, especially in the circumstances which apply in this case.
I am sure the people in Rossmore will take note of the unwarranted attack made by Deputy Reynolds on the new investors in their area. We do not denigrate people or turn them away when we are satisfied that there are no good reasons for doing so, as I am satisfied in this case.
What would happen to the efforts of the IDA and other development agencies if their clients were to be made the subject of such free for all abuse in this House or elsewhere at what appears to be the instigation of business competitors who are also being considered for mining facilities by the Department and who have no grounds for complaint at the way they have been dealt with.
In relation to the statement issued by the company on the Vancouver Stock Exchange, I was not pleased with them and asked for a correcting statement to be issued by Amble Resources Ltd. They freely issued such a statement to the stock exchange, with approval of the wording by my Department.
It was an inaccuracy.
In relation to Boulder Mountain, the other company mentioned by the Deputy, again he is somewhat misinformed and seems to be on a malicious course of intent when using the phrase "dealings were suspended." That has connotations that something devious has gone on.
Is the Minister denying that?
My officials informed me that there has been a "halting". In trading in this company's shares.
(Interruptions.)
No interruptions, please.
This is nonsense.
If I may be allowed to continue, this is a technical word. We understand that the "halting" is due to new information becoming available on the company's property which could be material to the share value of the company, probably in a beneficial way. The purpose of the "halting" was to enable information on drilling results to be provided to brokers and so forth in accordance with stock exchange requirements. That is the manner in which they deal with their stocks on the Vancouver Stock Exchange. I have been informed that this procedure is not out of the way. It is simply as a result of new drilling information becoming available which may benefit the company.
The Minister has five questions which he has not answered.
I am really saddened at the Opposition Deputy's attitude. I am saddened that the Deputy is so malicious in intent with regard to a company who have already invested £60,000 in keeping a mining company going——
Five questions with no answers.
——and are prepared to invest further in Irish mining interests.
(Interruptions.)
Order, please.
The Opposition seem to be against investment in Ireland.
The Dáil adjourned at 9 p.m. until 10.30 a.m. on Thursday, 6 February 1986.