asked the Minister for Energy the total royalty payments made to the State by Tara Mines Limited, in respect of its mining operations at Navan, County Meath, from the commencement of mining to the latest date for which figures are available; the estimated royalties owed to the State by Tara Mines Limited; and the measures the Government are taking to ensure that any outstanding royalty payments are made.
Written Answers. - Tara Mines Royalty Payments.
42.
No royalty payments have been made by Tara Mines Limited, to the State to date.
Under the terms of the State mining lease, the royalties payable by Tara Mines Limited, are based on the profits of the company as calculated by the Revenue Commissioners for corporation profits tax purposes. On the basis of profits computations recently made by the Revenue Commissioners in respect of the years 1978 to 1984, inclusive, a demand for payment of £4,788,970 royalties calculated as due in respect of those years was sent to Tara Mines Limited, on 6 March 1987. Due to inadequate accounting information the Revenue Commissioners were not in a position to compute profits for 1985 and 1986. The calculation of profits and the royalty demand were made on the basis of conclusions arrived at by the Revenue Commissioners and by my Department and their legal and financial advisers on various complex issues involved in making the computation of profits. My Department are aware that the company have a different viewpoint on some, at least, of those issues. The company have rejected the demand and, in accordance with the provisions of the State mining lease procedures are now in train to refer the matter to an arbitrator.