asked the Minister for Energy the total royalty payments made to the State by Tara Mines Ltd., in respect of its mining operations at Navan, from the commencement of mining to the latest date for which figures are available; the estimated total royalties owed to the State by Tara; the measures the Government is taking to ensure that the outstanding royalties are collected; if payment of royalties in relation to the period to the recent take-over of Tara are the responsibility of the original company or the new owners; and if he will made a statement on the matter.
Written Answers. - Tara Mines.
12.
Under the terms of the State mining lease the royalties payable by Tara Mines Ltd. are based on the profits of the company as calculated by the Revenue Commissioners for corporation profits tax purposes. These profits have not yet agreed with the Revenue Commissioners as a number of complex matters at issue have not been resolved. In the circumstances, my Department is not in a position to demand payment of royalties by the company nor indeed to estimate with any accuracy the company's liability for royalty payments.
As the Revenue Commissioners are not in a position to indicate when the matters at issue will be resolved, settlement of the company's profits by arbitration is being considered. It is provided in the State mining lease that if a dispute arises in relation to ascertainment of the company's profits it shall be referred to arbitration.
The recent take-over of Tara Exploration and Development Company Limited by Finnish company does not affect the continuing liability of Tara Mines Ltd. for royalties under its State mining lease.