asked the Minister for Energy if, in view of the huge volume of export of ore from the Navan orebody, County Meath, the Government will consider the possibility of building a smelter in this country; if any discussions have taken place with the Finnish owners of Tara regarding the possibility of building a smelter; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Ore Smelter.
8.
A review carried out in October 1987 by the Industrial Development Authority of the prospects for establishment of a zinc smelter in Ireland concluded that a smelter would not be a viable undertaking because of low zinc metal prices, unfavourable dollar exchange rate movement and high operational costs. Outokumpu Oy, the principal shareholder in Tara Mines Limited have recently indicated that they have no plans to establish a zinc smelter in Ireland because they also consider that it would not be a viable project at present. However, they will keep a watching brief on the situation.
Will the Minister not agree that the whole thrust in relation to our natural resources should be to process them to final products before export? Will the Minister agree that for that reason the question of whether a smelter is viable should be viewed from a wider perspective than whether "X" percentage points of profit can be made? Will the Minister agree that the effects on the Irish economy if we had a processing smelter should be considered and that, therefore, we should take a wider view of the viability of the project?
I agree with the Deputy that the ideal solution is to have whatever processing possible done on Irish soil but there is a question of economics involved. In 1976-77 there was talk about the construction of a smelter and detailed investigation of the prospects for the establishment of a zinc smelter was carried out by the IDA. They have looked at it since on a regular basis and as late as October last year indicated that it would not be a viable proposition. Proposals that have come forward require that the State puts its hand deeply into its pocket and no proposal required State support of less than £80 million at a cost, on the basis of 500 employees in a smelter, of about £160,000 per job. The matter is subject to constant review. It would be ideal if we could process here but economically that is not viable at the moment.
Is the Minister aware that since the viability of a smelter was examined in 1977 626 million tonnes of ore, including 519 million tonnes of zinc, have been exported? Will the Minister agree that it is the hallmark of a Third World country to be exporting natural resources?
I would not accept the last point.
Will the Minister agree that the position has changed in regard to electricity in that as the ESB have excess capacity the price of electricity is going down? Will the Minister agreed that it is time to have another viability study?
The question of the construction of such a smelter is kept under constant review. The last review was carried out in October 1987 by the IDA. I will get them to look at the matter again. In an ideal world I accept we should be processing but that is not viable now.
The Minister referred to the cost of jobs involved in the smelter but has he taken into account the fact that if we had a smelter jobs would be available in the manufacture of parts for cars, washing machines and so on? Were such jobs taken into account?
The IDA take all matters into consideration in their review of the viability of constructing a smelter.
I should like to ask the Minister to make available to us the basis on which the IDA have carried out their assessment of the viability of a smelter.
Let me think about that.