Deputy Seán Byrne has been given permission to raise the following matter on the Adjournment of the House: why the feasibility study being carried out at Ballingarry Anthracite Mines, County Tipperary, has been discontinued. The Deputy has 20 minutes.
Adjournment Debate. - Ballingarry (Tipperary) Anthracite Mines.
I should like to thank the Chair for allowing me the opportunity to raise this important matter on the Adjournment. With your permission, I will share my time with Deputy Brendan Griffin and Deputy Seán McCarthy from the same constituency, who are as concerned as I am about this matter. In Ballingarry, a small mining village in County Tipperary, 220 people line up every week to collect their dole money while over £10 million worth of top grade anthracite lies unexploited beneath their feet. The mines and valuable machinery are flooded under hundreds of feet of water since the mine closed two years ago. Almost £5.5 million was poured into the mine over its last two year working period. Miners want to know where the money went and when they can go back to work in what was once their sole source for earning a decent living. There was an article about the mines in The Irish Press of 24 February 1986 entitled “Ballingarry Mines £5 million Black Hole”. The question was asked in the article: “Where did all the taxpayers' money go?” We were under the impression, after a series of meetings over the past few months between the Minister for Energy, the Minister of State, the receiver, the liquidator and officials from the Department of Energy and all the public representatives, that something would be done. We hoped that the unemployed families in Ballingarry village and district would be given some hope. We felt we were reaching a point where the legal jungle could be sorted out and the feasibility study could go ahead.
I believe the feasibility study started about three weeks ago. I was informed yesterday that it was about to be discontinued and I was informed this morning that the company concerned were requested to pay approximately £30,000 to the receiver, Mr. Somers. The company concerned, Carter and Kelvin, have now pulled out of the deal and the people in the Ballingarry area are very worried about what will happen and if another year will pass before this mess is sorted out. Many of those people have large families and they have suffered great hardship over the past two years. There is no employment in the immediate area and they still hope the mine will open in the near future. I look forward to any hope the Minister can give us this evening.
I will not go into all the details of the sad history of this mine over the years except to say that the people in South Tipperary want the mine opened in the national interest and in the interest of the unemployed people who feel they are entitled to earn a living out of this excellent anthracite mine, the best in Europe. I hope the Minister will be able to tell us that the feasibility study can go ahead, the taxpayers will then see that £5 million of their money was not wasted and that employment will be created for many years ahead. I am disappointed to hear of the events which took place over the past two days and I would like to hear the reason for them. Late last year after a meeting Oireachtas Members had with Mr. Somers, we got the impression that the feasibility study was going ahead. We thought all the legal matters were tidied up and there would be no more problems. Unfortunately this is not the case.
I thank the Chair for allowing me to raise this matter. I had to do something similar a fortnight ago. This is an indication of the unemployment we have in South Tipperary. I hope I will get the same type of information tonight as I got from the Minister of State two weeks ago in connection with Carrick-on-Suir.
I would like to thank my colleague, Deputy Sean Byrne, for allowing me part of his time on this question on the Adjournment. I share with him the concern of the people of the northern part of the constituency, particularly those in Ballingarry, about what has happened. Today sees another sad chapter in the chequered history of the Ballingarry mines. It is ironic that the withdrawal of Mr. Bob Carter from Ballingarry mines should occur on the day when the Today Tonight programme on RTE 1 will be on Ballingarry mines and people will see how a national asset like this has been abused by people. I recommend the Minister, Deputies in the House and anybody concerned about the spending of taxpayers' money to view this programme carefully tonight. There will be many eye-openers as to where taxpayers' money as been misspent.
My colleagues from south Tipperary and I, as well as many other people in that area, have worked strenuously to try to have the very valuable anthracite mines in Ballingarry reopened. There are very valuable deposits of anthracite in the mines. There are 150 miners there capable of mining this anthracite. They just want to be given the right to work. After one and a half years of strenuous effort we were delighted to note that Mr. Bob Carter of Kelvin Energy Limited, a Vancouver based company, was given permission by the Department of Energy to carry out a feasibility study. As Deputy Sean Byrne has said, the feasibility study was in progress, the drilling machinery was on site and everything was going along smoothly. However, last week we heard that Mr. Somers, the receiver, had written to Mr. Bob Carter challenging his right to be on the site. The solicitors acting on behalf of Mr. Somers had written to the owners of the drilling machinery requesting them to leave the site. We know that as and from today Mr. Carter has been told by his board of directors to leave the site and to have nothing more to do with the Ballingarry Anthracite Mines.
This came as a great shock to all of us who hoped that at long last there was some prospect of the reopening of the mines. I thank the Minister of State and the Department of Energy for facilitating us over the past one and a half years. On every occasion we requested him to meet a deputation of the elected public representatives of south Tipperary and all those involved in Ballingarry he did so willingly and placed his office at our disposal. We met on various occasions and we got first class co-operation from him. It is unbelievable, with everything apparently running smoothly that, at the final juncture, this snag should have occurred causing Mr. Carter to withdraw completely from the site. I ask the Minister to act as a go between between Mr. Somers and Mr. Carter. Surely there is some other way that Mr. Somers could have approached the matter rather than directing Mr. Carter to leave the site. If Mr. Bob Carter is not encouraged to come back onto the site again, I have great fears for the future of Ballingarry mines. Mr. Carter had all the expertise and financial backing. I understand that he was a man of integrity, that his company was one of integrity and that he had all the attributes necessary for getting Ballingarry mines working properly and profitably. This impasse is an abuse of the asset there, of the miners, of the people of Ballingarry, especially the families and dependants of the miners who are waiting and willing to work but because of some legal hiccup the whole project is put in jeopardy again.
The Minister must get Mr. Somers and Mr. Carter around the table again and urge them to resolve the legal problem, ensuring that Mr. Carter will continue his feasibility study when, hopefully, Ballingarry mines will go into full production. I would ask the Minister of State to contact Mr. Carter. I understand he is still in London. Shortly before 5 o'clock I 'phoned his hotel but he was not available. He had not checked out of the hotel but there was no reply from his suite. I can give the Minister of State his hotel telephone number so that he and his Department can continue to get in touch with him, beg of him not to return to Canada, to return to Dublin and resolve whatever small problem remains outstanding on the legal side. Above all, the people of Ballingarry demand of us, their public representatives, to ask the Minister to do that on their behalf. I have the matter in the capable hands of the Minister, urging him to do everything possible to ensure that Ballingarry Mines are put back into full production as quickly as possible.
I should like to thank my constituency colleague, Deputy Seán Byrne, for facilitating me by allowing me some of his time. As has been said, the news we have heard over the last two days is extremely depressing and distressing, particularly for those of us who are the public representatives of that area. It is even worse for the natives of Ballingarry. It is very disheartening to discover that for some reason — perhaps best known to himself — the receiver has appeared to prevent the feasibility study, which had been undertaken by Mr. Carter and his company, from proceeding. Perhaps there is an explanation. It is unfortunate that it appears now as though that company have decided to pull out.
It must be remembered that there is a very valuable, viable natural resource in Ballingarry, very high quality anthracite. Various independent mining engineers who were not associated with the Department or with any of the companies which in the past operated the mine, have estimated that the lifetime of the mine is approximately 30 to 40 years and that it would afford employment for that period. The families concerned in the area have a tradition of mining, passed down from grandfather to father, to son. Many families there literally do not know how to do anything else except involve themselves in coalmining. The underground life has been part and parcel of their history. Over 220 people are now unemployed in the village of Ballingarry, giving it probably the highest percentage unemployment rate, in relation to its population, of any village in this country.
It should be noted also that the workers in that mine showed their commitment to the long term project before the mine was put into receivership by having worked for a considerable period of time without pay. This should be remembered by some people who are inclined to engage in labour-bashing. It should be remembered that the workers in Ballingarry were prepared to work, and did work, for a number of weeks without pay while waiting and hoping that moneys would be provided to allow the mine to continue in operation. Unfortunately, the requisite moneys were not found. Now the mines are flooded. Ballingarry mines have had a chequered history over the years. I happen to have particular knowledge of the last concern to operate there. I can only say now, as I did before, that the company was run in a bizarre fashion, that there was extreme mystery surrounding its operations. For that reason, I could not have any confidence in that company.
I hope the Minister and his Department will take every step necessary to ensure that this valuable, viable national resource will be fully exploited, that genuinely interested, sincere and committed sources or parties will be facilitated in every way. I know the Minister and his Department will do so. It is terribly sad that the workers and families in that area have been caught up in the world of high business finance, that they have been made to appear as the pawns in a battle between powerful business interests. Many of those families had incurred debts and had made arrangements to repay them, being confident that their jobs were secure. I would exhort the Minister to make every effort to ensure that the company who had been undertaking the feasibility study will be encouraged to continue in order to give continuing hope to the families there.
I and my Department have been keeping in very close touch with developments in relation to the Ballingarry coalmine. Nothing would give me more pleasure than to see employment once again at that mine for the people of Ballingarry.
I should like to trace the history of the developments there because they are, to a large measure now, beyond my ministerial control. I am sure Deputies will be aware that the mining lease was assigned to Flair Resources (Ireland) Limited in 1982. I should say that when we assign a lease — and this is really a function of the Minister for Energy — my Department are not involved in giving grants, loans or moneys to mining companies to operate mines.
Ours is a statutory duty to examine applications for mining leases and to grant them whenever we are satisfied that the technical and management capabilities are there. That was done in 1982. The mining company went into receivership in January 1985. Prior to that the company, Flair Resources (Ireland) Limited, had entered into an agreement with another Canadian company, Kelvin Energy Limited. The agreement provided for the conduct of a feasibility study by Kelvin Energy Limited and for assignment of the State mining lease to Kelvin if the outcome of the feásibility study was satisfactory and if the consent of the Minister for Energy was forthcoming.
Commencement of the feasibility study was held up due to legal difficulties in relation to the lease. In November 1985 the receiver sought the Minister's concurrence to the feasibility study and requested that the Minister indicate his position on the question of assignment of a lease to Kelvin Energy Limited. This matter was considered by me and my officials. A letter from my Department in early January 1986 indicated that there was no objection to the feasibility study and also that, if Kelvin satisfied the Minister that they had the financial, managerial and technical resources to establish and maintain viable mining operation at Ballingarry, the Minister would be prepared to agree to the assignment of the lease to them. The House must be satisfied that we in the Department have acted in the most positive and helpful manner with a view to carrying out the feasibility study and to indicating that we could grant a mining lease in the circumstances which I have described.
It was then a matter for the receiver and Kelvin Energy Limited to make mutually acceptable arrangements for the commencement of the feasibility study. That is an important statement and it may be the nub of the problem. I understand that drilling operations commenced at Ballingarry a few weeks ago but not on a basis satisfactory to the receiver. He required that the work should cease until arrangements acceptable to him for the conduct of the drilling were made. This is a matter of the rights of the receiver being maintained. These matters are outside the remit of the Department. They are within the remit of the receiver.
A number of meetings have taken place this week between the receiver and representatives of Kelvin Energy Limited. A further meeting was arranged for yesterday but was cancelled as one of the principal parties involved was not available. The receiver has informed the Department that he is awaiting an approach about the new arrangements for the cancelled meeting. The resolution of the difficulties encountered in relation to the feasibility study is primarily a matter for the receiver and for Kelvin Energy Limited. While I am not involved in the breakdown of arrangements for the feasibility study I am concerned that every possibility should be fully explored for the reopening of the mine which would restore substantial employment in the Ballingarry area. I have indicated to both parties that senior officials of my Department will be available to attend meetings between the parties if it is considered that the attendance of departmental officials would be helpful. I can do no more than offer the expertise within my Department to help in this matter.
I have noted the Deputies' remarks as to why drilling operations have ceased. Certain statements have been made on which I will not comment because they were inaccurate. I do not think it would be helpful in any way for me to enter into the area of the rights and wrongs of this matter. I hope that the parties can resolve their difficulties. They are both aware that if I can help I will do so. To look to me to solve this difficulty by bringing pressure to bear on the parties is unrealistic. I cannot pressurise either party to act in a way which they might consider to be contrary to their interests. The best resolution to this problem can be achieved by negotiations directly between Mr. Carter and Mr. Somers, the receiver.
People often feel that it is the Minister who is at fault. This is not the case. The receiver has his legal and commercial rights. The company have their rights and objectives and they must fit into their own scene. For me to comment in detail on the difficulties that have arisen between the receiver and the company would be inappropriate and might be harmful so I will desist from doing so. I am more than aware of the Deputies' concern. They have continuously been in touch with me about this matter.
The Dáil adjourned at 5.30 p.m. until 2.30 p.m. on Tuesday, 4 March 1986.