Yesterday the discussion on this motion took a distinctly Party line and I was unable to resist the temptation to follow it, but, in the calmer atmosphere of this morning, it is not possible for me to continue on that course. I do not know that it matters a great deal who is entitled to claim the major part of the credit for the successful development of the valuable mineral deposits at Avoca. As far as I am concerned, what is happening there now is a vindication of a decision which I was responsible for having had taken ten years ago, when the whole process of exploration and development was begun. The important thing is to ensure that the valuable national assets which these deposits represent are developed as satisfactorily as is possible.
When this matter was being debated in the Dáil in 1956, the circumstances were very different from what they are now. Deputies Sweetman and Norton referred to that debate during the course of their remarks here yesterday and their references did not suggest that they had recently referred to the Dáil record of it. It might be useful for Deputies who are interested in that aspect of this question to go back over that debate. If we had been able then to foresee the future—on the one hand, the very substantial fall in the world price of copper which has since taken place and, on the other hand, the unexpected difficulty of the Canadian interests to whom the mines have been leased in raising the funds needed to complete the development—probably everyone who took part in the discussion would have taken a somewhat different line.
In 1956, on the basis of the then price of copper, it was obvious that not merely were the Avoca deposits a very attractive commercial proposition but that those who undertook their development were likely to make very substantial profits. I certainly have no objection to people who invest their money in Irish resources making profits, even substantial profits; on the contrary, a few very successful enterprises of that kind would help to attract interest in other development possibilities within the country.
It is still true to say, however, that these mines represent an attractive investment, even though the present world price of copper is such as to create a situation in which there are probably few, if any, copper mines in the world making profits. Nevertheless, the long-term indications are that the price of copper must recover. In that connection, I may say that we have had access to the opinions of international experts of the highest order.
They indicated that the price of copper over the next ten to 20 years is likely to average out at a price considerably higher than that now prevailing and certainly at a level which will put the Avoca enterprise in a position to work profitably.
The trouble is that the price of copper is now at an exceptionally low level. That, of course, has not yet affected the plans for Avoca development. The mine is not in production and it will not be in production until July next and it will be the price prevailing in July that will settle the policy of the company to whom the mine has been leased. It is sincerely to be hoped that the price of copper will have recovered by then, at least to a point at which it will be possible to operate the mine without loss. I should think there is a fair prospect that it will but it is not a subject upon which it is wise to attempt prophecy. What the situation may be if the price of copper remains at the present low level, or if it should fall lower, I could not forecast.
Deputy Sweetman said that I had the opportunity of revising the terms of the lease given to the Canadian company. That is not correct. During the recent election campaign there was a statement made that a change of Government would involve the closing down of the mines. I thought that was an injudicious statement to make but because it was made I took the course, with the consent of my Party, of making a statement at Wicklow that the terms of this lease to the Canadian interests would be honoured in the spirit and in the letter, and I repeated that assurance to the representatives of the company subsequently. There has of course been some necessary modification of the conditions consequent on the negotiation of this loan which the Government is now proposing to guarantee but, fundamentally, the lease remains unaltered.
I have always disliked seeing enterprises of national value such as this being made the shuttlecocks of Party politics. I do not think it does the country or the enterprises any good. So far as this enterprise is concerned, however, the mines have been leased to these Canadian interests, the terms of the lease have been settled and everything will proceed, so far as I am concerned, in accordance with the arrangements already made. I said here during the course of a discussion in the Dáil a couple of years ago that while I had some personal disposition in favour of the development of these mines by Mianraí Teoranta, the State company responsible for the initial development programme, I recognised that it was extremely unlikely that any State company could be in a position to develop the mines on the scale which the Canadian interests have planned. I want to say also that the various reports regarding the mine which have reached me have all testified to the skill with which the work of development was planned and is being carried out there.
It is no doubt appreciated by Deputies that the planning of the method by which a large deposit of that kind can most usefully be exploited is a highly technical matter and a mistaken plan could add a great deal to the cost of the extraction of the ore. It is clear that the method devised for the working of the Avoca ore is the result of highly competent work and all the external experts who investigated it have paid very high tribute to it. There is every reason therefore to think that if the price of copper averages out at the level which is anticipated by the experts who are qualified to make forecasts in that respect, Avoca will be a very profitable undertaking.
The copper price at which they hope to break even is quite low, much lower than that reported to operate at very many of the copper mines of the world. The loan is for a period of 12 years but the first repayment of the principal is not due until 1960. I mentioned yesterday that the proven volume of mineralised rock at Avoca would enable work to be continued there for 12 years on the basis of the scale of operations planned by the company.
