Frank Crowley
Question:12 Mr. Crowley asked the Minister for Finance his views on whether lack of clarity in taxation of mineral deposits is a factor in the decline of investment and employment in the mining industry sector since the seventies.
Ceisteanna — Questions. Oral Answers. - Taxation of Mineral Deposits.
An estimated 1,375 people were employed in mining and exploration in 1970, 1,850 in 1980 and 1,200 in 1990. Quarrying employs about 3,500 people and 15,000 are employed in associated industries such as cement and magnesia production. Between 1,000 to 2,000 jobs are generated elsewhere in Ireland through linkages.
Major investment in mining only occurs when a new mine is opened. No new mines have been developed since 1977 when Tara Mines commenced at a cost of about £60 million.
I have been informed by the Minister for Energy that the new discoveries of Galmoy and Lisheen are likely to result in major investment, in excess of £100 million, in the next few years. Investment in exploration is estimated by the Minister for Energy to be around £4 million per year.
The taxation legislation relating to mining is no more complex than other areas of the tax code and the Revenue Commissioners have informed me that they are not aware of any complaints about the lack of clarity in tax legislation relating to mining.
The Minister in his reply did not advert to the Lickfinn Mines in Ballingarry. Are those mines not included on the Minister's list? A licence has been issued but there is no activity. What is the taxation income involved?
The Deputy is asking a particular question.
I do not have a specific figure for that. Specific legislation has been drafted at various times to address the issues as they arise and to try to generate activity. This includes a number of Income Tax Acts in 1967 and 1974. In the recent Finance Bill there were changes to try to help exploration. Again in the Finance Act, 1990, there were amendments to try to bring forward activities. At that stage the ten year commencement period was done away with. Successive Governments have always responded to try to activate the market place and encourage people to invest in the mines. There are very attractive tax incentives. There is a great number of licences in existence which are unlike the one the Deputy has mentioned where there is no activity, but that is a matter for decision by the licence holder.