andMr. Governey asked the Minister for Industry and Commerce if he will make a statement on the closure of the Castlecomer collieries following a Government decision; and what is the prospect of re-opening these mines in the immediate future.
Ceisteanna—Questions. Oral Answers. - Castlecomer Collieries' Closure.
58.
In accordance with the recommendations in the report of an Inter-Departmental Committee which had been established to examine the financial prospects of Castlecomer Collieries Ltd., the Government decided that no further State financial assistance would be made available for the continued uneconomical operation of the Castlecomer mine. When informed of this the company decided to cease mining operations on 31st January, 1969. The question of re-opening the mines is a matter for the company, but I understand that the mine is being abandoned as the company are satisfied that it could never attain viability.
It will be necessary for me in the immediate future to move a Supplementary Estimate for the moneys advanced to Castlecomer Collieries Ltd. in the current financial year and I will make a statement to the House on that occasion regarding the position generally.
Has any effort been made by the company or by the Government over the past few years to develop these mines for the economic production of coal?
Yes. The matter was examined in very great detail, with considerable expertise and with the expenditure of a good deal of money, to ascertain whether development was feasible and the clear consensus was that it was not feasible to make a viable, economic proposition of these mines.
I understand from the people locally that the Government supplied money on a week-to-week basis for the payment of wages as against having any plan to develop the mines economically by putting them in a proper state. Over 200 men have been employed there over the past 40 years. This is a very important industry from the point of view not only of Castlecomer but of the country generally. I think Government policy just phased out where these mines are concerned in the hope that they would not have to do anything about their proper development to enable them to continue giving employment. It is very important that the mines should be put into a position in which they can economically carry on mining operations because the coal produced in Castlecomer is the best anthracite in the country.
Would the Minister say how much money has been given by way of State grant to these mines in the past three years and if the Government have taken any action to provide alternative employment for the men who may become redundant as a result of the closure of the mines?
The Government provided money to keep the mines going. They also provided money for a technical assessment of the future of the mines. From this technical assessment it became very clear that there was no prospect of developing the mines economically with any capital investment. The total amount advanced to the company was £250,480. That is over a quarter of a million. In addition, special efforts were made. A special level of grants was made available to develop new industries in Castlecomer and Deputies will be aware that a considerable degree of success has attended those efforts. Having regard to the technical view given to the Government that it is not possible to make the mines an economic proposition, it must be admitted, I think, that the action of the Government in keeping the mines going up to the end of January last and also making special efforts, which have, as I say, been successful, to attract industry to Castlecomer, represents a type of treatment for Castlecomer which is as good as could be expected from any Government for any part of the country.
Would I be correct in saying that the member of the trade union on the board of directors and the trade union representing the men were of the opinion that the mines could be made to work economically and could be a viable proposition if the proper attitude in relation to their financing were adopted?
It is true to say that the representative of the trade union on the board of directors expressed views of that nature but, according to my information, it would not be true to say that these views were representative of the views of the workers in the colliery. Furthermore, when the last decision to continue financial assistance to the mines was made by the Government, it was on the clear understanding by everybody concerned, including the trade union, that, if the technical examination showed that the development of the mines was not going to be a viable proposition, the mines would have to close and this, in fact, is what has happened.
Would the Minister not agree that if employment cannot be found for the 200 people involved it will cost the Government as much in social welfare over a 12-month period as the Government have paid in subsidy to the mines over the past couple of years?
And a good deal of that subsidy has been paid back in income tax over the last couple of years.
Deputy Tully may not have paid too much attention to what I said about the provision of alternative employment.
Is the Minister satisfied the proposals for the establishment of new industries will absorb all the miners now being made redundant?
The industries will, I think, absorb all who are capable of being absorbed.
What does the Minister mean by "capable"?
The actual miners may not be willing or able to do any other kind of work.
Has the Minister consulted the records of the history of Ballingarry Mine, Tipperary, an anthracite mine which was certified to the Government of which I was a member by two mining experts to be utterly uneconomic and incapable of rehabilitation? Yet, an enterprising individual came home from Britain and, within six months, was making a gigantic fortune through his own energy and enterprise out of the very mine we had been persuaded to abandon by two leading mining experts. If the Minister's records confirm what I now say the Minister should think again about Castlecomer.
Whatever may be the position with regard to Ballingarry, the position with regard to Castlecomer is that a technical report was received some years ago——
We got two technical reports.
——and the Government agreed to continue subsidising the mine and financing a further study by a different group. Arising out of that study a good deal of exploratory work was carried out in the mine—this was the second approach—and the net effect was that the mine could not be made viable.
I suggest the Minister should ask his Department to tell him the story of Ballingarry.
Could the Minister say how much modern equipment has been installed in the mines in the last few years? Is it not a fact that all the machinery is pre-1920?
I believe it is true that very little new machinery was purchased. I would expect very little new machinery, at any great cost, to be purchased for a mine which did not prove to be a viable proposition.
That is the reason then.
That is not so. The Deputy and others may say it is but anybody who has any competence in this field does not agree.
I know quite a number who have competence and they do not agree with the Minister.
What was the idea of such a paníc decision being taken? This decision was conveyed to the mining manager by phone on Wednesday, that the workers should be given notice the following day and that the mine would close down the following week.
The mine was closed down four years ago.
I understood that under the Redundancy Act, 1967, any man with four years in employment would be entitled to at least a fortnight's notice. Some to these men had 30 or 40 years employment and they got one week's notice. Will they be compensated for that shortness of notice?
Anything to which the men are entitled they will get.
The Government cannot recover from themselves.
It was closed down four years ago.
I want to make it clear that the Government did not give notice to these men. The Government notified this company that they would not continue to pay any further subsidy. Thereafter, whatever notice was given was a matter for the company. If they were entitled to more notice than they got they will be entitled to compensation. I am not saying they did not get the right notice but if what the Deputy said is correct they have a legal right and can enforce it.
Question No. 59.