asked the Minister for Industry and Commerce if he will give figures showing the amount of capital invested in mining exploration in this country since tax concessions were first made available as an incentive to mine prospecting.
15.
Ceisteanna—Questions. Oral Answers. - Mining Industry.
14.
asked the Minister for Industry and Commerce the number of mine prospecting licences issued by his Department since 1953; and the number implemented.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 14 and 15 together.
A total of 1,635 prospecting licences have been granted since 1953. In his reference to licences implemented, I assume the Deputy has in mind those licences under which prospecting was carried out. Holders of prospecting licences are required to carry out work programmes, to incur minimum expenditure on such programmes and to submit reports of the work done to me. Some degree of exploration, varying from reconnaissance surveys to detailed drilling, has been carried out under all licences granted.
It is not possible to give a precise figure for expenditure on exploration since legislation giving effect to the tax exemption was enacted in 1956. It is estimated, however, that expenditure on exploration, so far unsuccessful, during this period was of the order of £5 million. In the case of viable discoveries, exploration continues to be carried out after the making of the initial discovery during the development period and subsequent to the commencement of production. Statements issued by the companies which have made viable discoveries indicate that some £38 million have been spent on the exploration and development of these discoveries. I have no information as to the proportion of this amount spent on exploration work.
I take it that my estimate of £50 million being spent on exploration is the approximate sum and, indeed, a modest estimate. In view of that, would the Minister not agree that there was no need for the indecent haste with which he acted to dishonour the agreement of the previous Government in relation to tax concessions on mining? The Minister was not yet on the losing side.
The Irish people were on the losing side if we had not changed that scandalous tax exemption. There was no indecent haste and the Deputy will find himself on the losing side if he tries to endorse the continuance of a totally unjustifiable tax exemption.
Is the Minister aware that the impact of the removal of the concessions has hit the small investor who, in fact, bulged the pockets of the prospectors? Is the Minister aware that they will lose as a result of the concession going rather than those who should in fact lose?
I am glad that the Deputy concurs with my opinion that they should never have had it. If one follows the share prices, there is a very realistic assessment by the stock market which is that there has been a certain fall in the value of some shares but not an enormous fall. The objective of this is to put back some balance and reason into the relationship between the Irish State, representing the Irish people on the one side, and the mining interests on the other side. We now have that reasonable balance and I think that people who invested as pure speculation may get their fingers burned but people who made a serious investment and are prepared to stay with it will see that the companies are left in a circumstance where reasonable profits commensurate with their profits in other similar countries can be obtained and they will obtain not perhaps, a speculator's return but a reasonable return on their investment.
Would the Minister agree that what he now refers to as a "scandalous practice" could hardly be justified in view of the figures he has given? The State has received many millions more than it has lost in any tax so far. Does he not agree that there were many other ways and means by which he could recoup for the State a fair share of the mining profits without dishonouring a solemn undertaking given by the previous Government?
I think the Deputy's irresponsible questioning is doing the undermining. I reject his suggestions and on this issue I agree with Deputy Blaney.
Since this decision was taken arising out of the report of the commission we set up in 1971, will the Minister now lay the report of that commission before the House? Further, will he tell the House if the report recommended the cancellation of the tax concessions?
We cannot debate this matter today.
Why did the Minister not take the same prompt action in relation to the commission of inquiry to examine motor insurance, a problem that is just as serious and urgent?
I am calling Question No. 16.
16.
asked the Minister for Industry and Commerce if it is the policy of the Government to nationalise the mining industry in the future.
It is not the policy of the Government to nationalise the mining industry.
Will the Minister state if it is the policy of the Labour Party?
Can the Minister state if the Government will consider taking an equity stake in the mines?
With regard to the question of an equity stake, the Deputy will be aware that this has been offered to the Government by one of the companies. With regard to the policy of the Labour Party, the party conference was televised fully and was seen by the whole country. We look forward to a similar exercise in regard to the Deputy's party. The Labour Party's policy with regard to mining was determined at that conference and I think it is known to everyone in the country.
We have no private sessions.
I am sure Fianna Fáil wished they had a few years ago.
I am calling Question No. 17.