asked the Minister for Energy the total amount claimed by the State in royalties from Tara Mines Ltd., which is at present subject to arbitration; when the claim was first made; when the question of the appointment of an arbitrator was first raised; the number of occasions since then on which there have been meetings between his Department and Tara Mines on the appointment of an arbitrator; the progress, if any, which has been made on the appointment of an arbitrator since his reply to Parliamentary Question No. 27 of 24 November, 1988; and if he will make a statement on the matter.
Written Answers. - Tara Mines Royalties.
28.
On 6 March 1987 my Department sent a demand for payment of £4,788,970 royalties to Tara Mines Ltd., calculated as due in respect of the years 1978 to 1984, inclusive. The calculation of profits and the royalty demand were made on the basis of conclusion arrived at and certain assumptions made by the Revenue Commissioners and by my Department on various aspects of the computation of the profits of the company. The company has a different viewpoint on some of these issues and it rejected the demand. The process of referral to arbitration was initiated immediately by the Department and agreement with the company on the party to act as arbitrator was reached on 11 September 1987.
Consultations with legal and financial advisers and with the Revenue Commissioners on a number of complex and important issues were necessary before the matter could be referred to arbitration. These consultations are continuing but it will be some time yet before they are completed.