Minerals Development Bill, 1995: Second Stage.

Minister for Transport, Energy and Communications (Mr. Lowry)

I move: "That the Bill be now read a Second Time".

This Bill is essentially a technical precautionary measure which has been prepared in response to legal advice.

Its main purpose is to give specific statutory cover for certain long-standing practices for renewal of minerals prospecting licences and for charging fees for applications for certain State mining facilities. Its purpose is also to update the original penalties in the Minerals Development Act, 1940 and apply them to offences by companies and other organisations so as to maintain an effective deterrence against illegal mining and other offences.

Since the detailed explanatory and financial memorandum, which was published with the Bill, deals with all provisions of the Bill in quite some detail. I propose to concentrate my remarks on the general background to the Bill and on the reasons why, with the assistance of this House, the Bill should be enacted as soon as possible.

Since the Minerals Development Act, 1940 came into operation thousands of minerals prospecting licences have been granted by successive Ministers following public newspaper advertisement of the intention to grant the licence and consideration of any representations made. Representations are very rare indeed, which is hardly surprising given the responsible way in which holders of minerals prospecting licences generally conduct their business.

Many of those licences were renewed, in some cases a number of times, by successive Ministers, in good faith, including hundreds of licences currently in force. The long-standing practice of renewals and successive renewals has not given rise to any difficulty or challenge. Legal advice, however, has drawn attention to the lack of specific statutory provision for licence renewals and put the case that fresh licences should have been granted after the term of the original licences expired. Therefore, there is pressing need for legislation to validate all renewals to date and to specifically empower the Minister to renew any of those licences and any other licences granted in the future, where the Minister considers that renewal is justified in the particular circumstances of each case.

I draw the attention of the House to the fact that, in the interests of transparency, section 2 imposes the same obligation on the Minister to publicly advertise the intention to renew a minerals prospecting licence as applies when such a licence is to be granted for the first time in all cases.

There are currently 486 minerals prospecting licences in force of which about 300 would fall due for renewal in 1995, and the rest would fall due for renewal in 1996 or later. Details of minerals prospecting licences in force are given in the statutory report for the six-months to 31 December 1994 which I presented to this House and to Seanad Éireann on 2 February 1995. Clearly, without the legislation now proposed to effectively safeguard the status quo, there would be very considerable disruption to the renewal process for all concerned.

The essential focus of minerals prospecting activity is to identify as quickly as possible all commercially viable minerals deposits which could be developed and holders of minerals prospecting licences are encouraged to undertake minerals prospecting in a very active and systematic way.

Renewals of minerals prospecting licences are considered strictly on a case by case basis. Thus, whether the licence will be renewed in a particular case will depend, first, on whether the licensee seeks renewal of the licence. About 100 licences are surrendered each year by licensees some of whom seek licences for other areas perceived to be more prospective. If renewal is sought, the exploration and mining division of the Department of Transport, Energy and Communications would give particular attention to actual performance to date by the licensee including the submission of required work reports and compliance with the other conditions of the licence and with undertakings given and, if those were satisfactory, the licensee would have to enter into a commitment to undertake a specific further programme of exploration in the area in question before renewal of the licence would be agreed.

Geologists from the exploration and mining division of the Department of Transport, Energy and Communications closely monitor exploration activity by licensees and conduct many site visits throughout the State. Licensees are obliged to give to the division at least two weeks advance notice in writing of proposed borehole and shaft sinking to a depth of more than 20 feet below the surface and to obtain the division's written approval, at least 20 working days in advance, for proposed trenching operations; these requirements provide opportunities for the division's geologists to conduct particularly focused and detailed site visits, the outcome of which could have a direct bearing on whether the particular licences in question — or other licences held by the particular licensee — ought to be renewed.

Subject to meeting the requisite technical, financial and environmental criteria, and certain specific procedural requirements where privately-owned minerals are involved, a successful licensed minerals prospector would be favourably considered by my Department for the grant of a state mining facility. Every encouragement is given by the Department to licensees at minerals prospecting stage to work assiduously so as to identify viable deposits for development. The Department also assists licensees in identifying as early as possible all steps needed to be taken by the licensees to secure the necessary permits for the development from the relevant authorities, that is, the Department itself, the relevant local planning authority and the Environmental Protection Agency.

The Minister for Transport, Energy and Communications, as national licensing authority, must ensure that all proposals for mine development are thoroughly and expertly examined before permission is granted to proceed with them. The Minister must ensure that valuable national minerals resources are effectively and efficiently developed, and State revenues therefrom assured. In addition, in accordance with the obligation of each Minister to protect the environment, the Minister must also be satisfied, before permitting the development of national minerals resources that the development will cause as little harm as possible to the environment. Furthermore, the Local Government (Planning and Development) Regulations, 1994, stipulate that the Minister for Transport, Energy and Communications must receive a copy of the environmental impact statement, prepared by the developer of any mine project, at the time the developer submits an application for planning permission to the relevant planning authority. Staff of the Department's exploration and mining division and of the Geological Survey of Ireland, which operates under the aegis of the Department, are directly involved in examining all proposals for mine projects.

In the case of small mine projects, involving minerals such as coal or industrial minerals generally, the engagement of external consultants would not usually be necessary. In the case of larger mine projects, however, the Minister needs the best possible independent advice. This is particularly so in cases involving base metals — such as the major proposed zinc-lead mines at Galmoy, County Kilkenny, and in my constituency at Lisheen, County Tipperary — which would have major infrastructural and financial considerations as well as possible implications for the environment. In such cases the Minister requires the best mining practices and minimising, if not avoiding, all important long term negative effects of the mines if they were to proceed to be brought to his attention. This means the Minister has to call for advice from suitably qualified and experienced external consultants from relevant disciplines and having the required international standing. Because of the small number of mines in the State, independent expert advice of the required level would not ordinarily be available from within the State except in relation to some limited aspects of mine projects.

Where applications for a State mining lease or licence are successful, the practice has been to recoup handling costs as part of the fees for the State mining facility for the project. There is no mechanism in place to recoup handling costs necessarily incurred by the Minister in considering applications which turned out to be unsuccessful or are later withdrawn for any reason. Section 5 is designed to fill the gap in the Minerals Development Acts, 1940 to 1979, by specifically requiring all applicants for State mining leases or licences to pay an appropriate fee with their applications. As heretofore, the handling fee will be kept as low as possible consistent with a thorough independent assessment of each application.

The need to legislate for renewal of minerals prospecting licences and for application fees to be charged for State mining facilities gives me the opportunity to legislate also for updating the original penalties in the 1940 Act for a variety of offences. The penalties have become derisory through the fall in the value of money. The offences relate to illegal working of minerals, obstruction of authorised persons and failure to provide required information to the Minister. Clearly, there is continuing need to deter would-be offenders by having updated penalties which can be applied specifically to offences committed by individuals whether acting alone or acting behind a corporate veil. Sections 6 and 7 will allow the courts to impose penalties fitting particular offences and circumstances if such should arise in the future.

I am determined that, with the proper application of modern technology and mining techniques, the mineral resources of the nation will be developed with proper safeguards for the environment. These are national assets which must be developed actively and responsibly to achieve the maximum benefit in terms of job creation, increasing national wealth and underpinning industrial growth. It is vital that every effort be made to locate all commercially viable mineral reserves and, having done so, to bring them into production as efficiently as possible. My aim is to support as strongly as I can the principle of sustaining development for the benefit of the nation as a whole.

As this House will be aware, the previous Government established a review group under the chairmanship of Peter Quinn to undertake a fundamental review of national minerals policy and the Minerals Development Acts, 1940 to 1979. I requested the group to report to me with recommendations early next month. I shall arrange to have copies of the report presented to both Houses of the Oireachtas.

My intention is to seek Government decisions on the review group's recommendations as quickly as possible after I have received and considered the report. It is not possible to say now whether there will be a further Minerals Development Bill in 1995 or what such a Bill might contain.

The Bill before the House does not prejudice the fundamental review of national minerals policy or of the Minerals Development Acts, 1940 to 1979, which is in progress. Rather, the Bill is required to fill as quickly as possible important gaps in the Minerals Development Acts which have come to our attention. I commend the Bill to the House.

Mr. N. Treacy

While I welcome the Bill it has been hastily prepared and I cannot understand the reasons for introducing it at this time. I listened with interest to the Minister and he has not made it obvious to me, nor I am sure to the House, that there is any urgency pertaining to the Bill. I welcome the Minister to the House and his presence here is evidence of his commitment to mining. It is obvious that a man based in Tipperary close to the Lisheen and Galmoy sites should not alone be here but be seen to have an interest in mining because it is obviously important to his local area. However, I am baffled by the team of Ministers of State and their responsibilities in his Department. A recent reply to a parliamentary question indicated that Minister Stagg had responsibility for mining matters.

I queried that yesterday with the Ceann Comhairle's Office as I was aware that the Minister of State, Deputy Doyle, attended an international mining conference recently and I was told no responsibilities had been allocated to her. I cannot understand how a reply to a parliamentary question indicated that Minister Stagg has responsibility for mining, the Minister introduced the Bill and the Minister of State, Deputy Doyle is present, yet I was informed by the Ceann Comhairle's office that she has no responsibilities. That baffles me and I would be grateful if the Minister would clarify the position before the conclusion of the debate.

Mr. Molloy

She is the butterfly that floats through every Department.

Mr. N. Treacy

I wish her well in her flotation.

The legislation in place prior to the publication of this Bill ensures that mining operations in Ireland must now conform to the highest enviromental standards, among the strictest in the world. At least 15 Acts of Parliament affect mining in Ireland. These include the Minerals Development Act, 1940 to 1979, the Mines and Quarries Act, 1965, the Wildlife Act, 1976, the Fisheries Consolidation Acts, 1959 and 1980, the Public Health Acts, 1879 and 1907, the Safety, Health and Welfare at Work Act, 1989, the Local Government Planning and Development Acts, 1963 and 1990, the Local Government Water Pollution Acts, 1977 and 1989, the Local Government Air Pollution Acts, 1987, the Environmental Protection Agency Act, 1992, and various other Acts which have a peripheral effect on mining here.

In addition to those statutory controls, the incorporation into Irish legislation of the European Community Directive 85/337 on environmental impact assessment requires that any mining project must complete a comprehensive environmental impact statement which is submitted to the relevant local authority as part of the process for planning permission. That ensures full consideration must be given to environmental issues before a planning decision is finally made. The environmental impact statement is studied by the relevant local authority, the Department of Transport, Energy and Communications, the Environmental Protection Agency, the National Mining Board and various outside experts nominated by those bodies to ensure that the proposed mining development meets the most rigorous environmental standards.

Professional mining companies in Ireland are committed to carrying out all exploration activities and to planning and constructing mineral projects in compliance with all Irish and EU legislation. Those professional companies willingly accept the responsibility to ensure that mineral deposits are developed in a way which is compatible with the needs of the environment and we have a good record on this in comparison with other countries, some of which I visited.

When I was Minister for Energy in the former Government, I set up a consultative process between the mining industry and the exploration and mining division of the Department of Transport, Energy and Communications in relation to a proposal for a Bill to amend the Minerals Development Acts, 1940 to 1979. The Department sought the views of the mining industry on those proposals submitted to the Department before I left office prior to last Christmas. During the discussions I had with the industry at that time it became clear that there was a need for a fresh approach to mining in Ireland. I felt that the public fears which often arise when mining development is proposed should be further considered. We must all realise that it takes many years from the time a mineral deposit is identified to bringing forward a development proposal. Many professional studies are carried out including feasibility, environmental and marketing studies, financial projections etc, before a deposit can be considered for development.

When a mining exploration company considers that a proposed mining project is commercially viable, it must submit a planning application, with an environment impact statement, to the relevant local authority. It is also required to give proper public notification of its intention to apply for planning permission. At that stage any member of the public is entitled to communicate in writing with the planning authority setting out any concerns he or she may have about the proposed mining project which must be taken into consideration by the relevant planning authority before it makes a final decision. If it makes a positive decision allowing the mining development to proceed, that decision can in turn be appealed to An Bord Pleanála by any member of the public within 21 days. In the event of such appeal the proposed application will be assessed independently by the Planning Appeals Board and treated as a basic new planning application to another authority. When the National Mining Board, the local authority or the Planning Appeals Board have made decisions on applications any individual is entitled to bring such a matter to court.

As the former Minister for Energy, I considered there was a major need to streamline and put in place a clearly defined public minerals policy. I considered that the mining companies who carried the risks should be aware of what was required of them. I considered that the public should be aware of the State's position pertaining to mining and the environmental considerations on which mining impinges and which must be protected at all times. I also consider that the financial services which will underpin future mining development should be aware of the conditions required in Ireland before a mining licence is made available. Above all, I saw the need for a national policy to ensure that mining was carried out to the highest professional standards in accordance with the most detailed environmental criteria, so that anybody involved in any aspect of mining would know exactly what was required. A national policy should show clearly an opportunity for investment in our natural resources which should serve the needs of our people and make a positive contribution to our national economic well-being.

Consequently, I recommended to Government that we establish a national minerals policy review group, which the Government accepted. I established the National Minerals Policy Review Group in April 1994 which was given a mandate to report by the end of that year. Were it not for the interruption in Government last year this report would have been published a few months ago. I cannot understand the reasons for the delay. However, the Minister has confirmed that it will be published next month. I asked the review group to produce a report addressing all the issues of consequence to our minerals industry, in order to place it on a secure footing into the next century and, specifically, to increase its competitiveness in attracting investment to create wealth and employment. These were fair, achievable, sustainable and practical goals. I look forward to receiving a copy of that report as soon as it is published.

Since that report should have been available at the end of last year — and we are told now it will be published next month — I cannot understand why this Bill was introduced so quickly. Suffice to say I have my suspicions and, unless the Minister is able to allay my fears when replying to this debate. I shall be confirmed in those suspicions until I have had an opportunity of reading the report of that National Minerals Policy Review Group. I will be in a position then to confirm the precise position.

The overall purpose of this Bill is to make express statutory provision for the renewal of minerals prospecting licences and validate licences renewed since the enactment of the original Minerals Development Act in 1940. I have no difficulty with those proposals. However, I am satisfied from my knowledge of the provisions of the 1940 Act there should be no doubt about the capacity of the Minister and his Department to grant or renew minerals prospecting licences. If there is any doubt it is better that such be eliminated in any new Bill, which I welcome. Also to be welcomed is the fact that the Bill proposes that any renewal of a prospecting licence be published in at least one newspaper circulating in the locality in which it is proposed to grant or renew the prospecting licence. That is only fair to everybody.

I am very surprised at the inclusion of section 5 (2) which gives the Minister and his Department, in consultation with the Minister for Finance and that Department, power to charge such fees as both Ministers and their respective Departments shall determine. I consider that to be an excessive step which constitutes a total disincentive to mining. During my time as Minister of State in the Department I cannot recollect ever having discussed this proposal with the industry, nor do I remember departmental officials at any time suggesting this to me or the industry. Therefore, I cannot see how it arises, which leads me to wonder whether this is the real reason for the rushed introduction of this Bill.

The last mining licence granted by the former Minister and his Department was to Arcon Mines Limited for a major development of a zinc and lead mine project to take place at Galmoy in Kilkenny over the next ten years. The former Minister and I were deeply involved in this application during our tenure in the Department and left no stone unturned to ensure that every detail pertaining to that application was fully considered. The former Minister and I became the victims of our efforts as a result of hypocritical comments by members of the various parties now comprising the multi-party coalition Government. As soon as they assumed office, they were very quick to forget and have not yet acknowledged that we were always motivated by hard work and dedicated effort to ensure that the resources in the south-east would make a major contribution to local, regional and national economic development.

The experience gained from dealing with that application confirmed for me the necessity to have a clearly defined, public national mining policy. For the benefit of those who may not have full knowledge of our mining industry, it is important that I put on the record the detailed process involved whenever an application for a mining licence is received. In the case of Arcon Mines Limited, the applicants were obliged to complete a comprehensive environmental impact statement, to be submitted to Kilkenny County Council, forming part of their planning permission application and they appointed eminent consultants to undertake that environmental impact statement. In turn, Kilkenny County Council employed highly qualified professional consultants to assess that EIS. The Department of Transport, Energy and Communications employed yet another group of consultants to take a third look at that environmental impact statement and the application overall. In addition, that application was scrutinised by An Bord Pleanála and the Environmental Protection Agency, both statutory bodies having their resident professionals, who gave the application further detailed consideration. Finally, the National Mining Board had to consider the application and hear all objections.

I believe in the law and in the democratic process and that consultants and professionals have a role to play. However, I believe there comes a time when the same type of qualified people acting on behalf of different agencies on the same matter merely confuses the overall position. Consequently, I do not understand how the Department of Transport, Energy and Communications, within which there are eminent professionals in the exploration and mining divisions, as in the Geological Survey office, a subsidiary statutory body attached to that Department, should be obliged to employ another group of professionals to third guess the original application already handled by at least two other consultancy groups and subsequently by two State bodies. The Department propose to charge the cost of its professional staff and the consultants to the applicant company. I consider this to be unnecessarily bureaucratic and cumbersome. It does not take cognisance of the high standards of professional advice available to the Department and relevant State bodies whose statutory role it is to deal with such applications.

The provisions of section 5 allows the Department latitude to third guess applications for mining licences by employing other consultants and to charge exorbitant fees for those services. I cannot accept that as fair, equitable or necessary. Consequently, I shall be tabling a substantial amendment to this section which I shall expect the Minister to address in a positive manner. This section appears to infer there is a long-standing practice to charge, in advance, a non-returnable handling fee of up to £200,000 for an application for a mining lease or licence. As everybody knows, there is no such long-standing practice. It is important that the provisions of this section be put in context. An application for planning permission by a mining company to a local authority carries a mandatory maximum fee of £10,000 whereas an application to the Environmental Protection Agency by the same mining company carries a maximum fee of £16,000. A handling fee of up to £200,000 charged by the Department of Transport, Energy and Communications, which is supposed to encourage investment in and development of the extractive mining industry, is a definite disincentive to investment, ruling out small, indigenous companies which have been the pioneers of mining projects in this country. No other business or industry is required to pay up to £200,000 in addition to the normal statutory fees, charged by the planning authorities and the Environmental Protection Agency with which I have no problem. The composition of that change is not itemised. From my knowledge of the mining industry, I am confident they would have no problem with a reasonable handling charge. However the recoupable handling fee the Minister for Transport, Energy and Communications proposes to charge is disproportionate and over and above the normal charges levied on any other business. This is unfair and discriminatory and a disincentive to the exploitation of our natural resources. I cannot understand how the Department staffed by the relevant professionals whose function is to ensure these resources can be exploited to the highest standards would now make the most negative proposals that has come before the House in my time here. In dealing with natural resources and the risk takers involved in the industry whose success or failure depends on their companies carrying these risks surely there is an onus on the State to acknowledge the position.

Since May 1994 the Department of Transport, Energy and Communications was specifically excluded from environmental considerations by section 98 (2) and 98 (3) of the Environmental Protection Agency Act. As a consequence, that Department has been spared the costs that would arise from such a scrutiny. Such considerations arose only once in relation to the Arcon application. This scrutiny was a duplication of the Kilkenny County Council scrutiny and a quadruplication of the efforts of both the Environmental Protection Agency and An Bord Pleanála. Consequently, section 5 is almost unnecessary but I am prepared to adopt a positive attitude to it provided the Minister is prepared to take on board a substantial amendment which I propose to table on Committee Stage.

Section 6 proposes to increase the penalties in the Principal Act by updating them and I have no difficulty with this. Section 7 proposes to ensure that bodies corporate fall into the same category as the individual and that they cannot evade their responsibilities under any of the Acts and I agree with this also.

Section 8 allows the Minister to expend the relevant moneys under the Act, in consultation with the Minister for Finance but I do not see much expenditure on the Minister's side as a result of this Act, apart from advertising costs. It is only proper that these should be regulated but they will not be a major drain on the resources of the Department of Transport, Energy and Communications.

While I welcome this Bill, I sincerely regret the Minister and his Department did not have more patience and ensure that consideration would be given to all aspects of mining once the national minerals policy review group reported. There is a danger that this report will be allowed gather dust on the basis that a Minerals Development Bill has been published prior to the arrival of the review group's report. I am baffled by this lack of coherence. I do not regard it as either professional or politically wise to deal with our natural resources in this piecemeal fashion.

Nationally and internationally, the minerals industry has a history of serious litigation. It requires detailed consideration and ultimate agreement between the State and the professional mining companies, taking into account existing legislation, the history of mining and the desire of the public at large to ensure that economic progress is based on equality of opportunity and the highest professional and environmental standards at all times. I hope this Bill will make some contribution to this. I look forward to the report of the national minerals policy review group. Subsequently, I hope we will be back in this House again to discuss a detailed mining Bill when all aspects of mining in Ireland can be considered and legislated for in the interest of the people.

I pay tribute to the officials in the Department of Transport, Energy and Communications, in particular, the exploration and mining section and the Geological Survey of Ireland. I found them to be positive and dedicated officials with high professional standards. I have no doubt they have the capacity to do the job. It is unnecessary to call in other professionals to deal with matters which have already been dealt with by them. I hope the legislation will be reasonable and equitable and that professionals will not get involved unnecessarily. I wish the Minister, his Department and the mining industry every success.

Mr. Molloy

Aontaím leis an méid a dúirt an Teachta Treacy, is é sin, go gcuireann sé ionadh air, agus cuireann sé ionadh ormsa chomh maith, an fáth go bhfuil an Bille seo os comhair na Dála faoi láthair. Tá a fhios againn go bhfuil grúpa curtha le chéile ag an Rialtas ó Aibreán 1994 chun scrúdú géar a dhéanamh ar thionscal na mianraí sa tír seo agus chun moltaí a chur os comhair an Aire, na Dála agus an phobail. As an grúpa sin a thiocfaidh moltaí chun an tionscal seo a chur chun cinn, a dhéanamh níos éifeachtaí agus tairbhe a bhaint as mianraí na tíre do mhuintir na hÉireann.

I am absolutely amazed this Bill has been brought before the Dáil this morning. All of us who have an interest in the mineral industry are aware of the minerals policy review group established by the Government in April 1994. I recently tabled parliamentary questions about the work of this group and was informed it was about to report. The people appointed by the Government to examine the minerals industry are eminently qualified to make recommendations on what is needed to ensure greater efficiency in this industry at departmental level and GSI level, with a view to achieving the maximum benefit for the economy in an environmentally sustainable way.

Far be it for any Member of this House, former Ministers for Energy or otherwise, to seek at this stage, when the Minerals Development Bill is before the House, to make proposals on what may or may not need to be done by way of legislation or amendment to this Bill when we are about to get the views of an outstanding review group appointed by a previous Government. These people have practical experience and academic and administrative knowledge of this industry. I asked for the names of the members of the group and I note it has a widespread representation. I would be pleased to see its recommendations. It is essential that the Government follow on from the report of that group with legislation to give effect to the main recommendations.

There is much dissatisfaction in this industry that the level of activity is not higher. Ministers who quote the current number of prospecting licences believe the general public think there is a great deal of activity in the mineral prospecting area. The reality is that the number should be higher. In 1989 there were 770 current prospecting licences. I am not sure what the level is today but it is down substantially on that figure. The Minister in his speech gave a figure of 486 mineral prospecting licences currently in force. Yet in reply to a parliamentary question yesterday, I was told there are 516 validly held prospecting licences. That is confusing and it confirms the allegation by Deputy Noel Treacy that this Bill has been rushed through. I do not understand how we can get such conflicting information in reply to a parliamentary question on Wednesday 29 March 1995 and in a speech by the Minister on Thursday 30 March.

It seems the Government does not have a legislative programme to bring before the House and that this Bill was hastily put together to fill in the time of the House coming up to Easter because there appears to be a paucity of legislation from this rainbow coalition. Whether it cannot agree on proposals — the Leader of the main Opposition party, Deputy Bertie Ahern, referred to it this morning and my Leader has referred to it — the public is coming to the conclusion that something is going on behind the scenes between the three coalition partners and they are not able to agree. This morning we had the unseemly carry-on of the Tánaiste having a change of heart on the legislation imposing compulsory water charges on all local authorities which he introduced when he was Minister for the Environment——

Acting Chairman (Mr. Browne,

Carlow-Kilkenny): The Deputy should deal with the Bill before the House.

Mr. Molloy

Members of the Labour Party have consistently opposed the legislation at council meetings. Democratic Left went into Government on the basis that certain things would be done and now that party is prepared to accept something else. This does not augur well for the future of the Government.

We have been told that the report of the review group will soon be published and that legislation will be required to implement some of its recommendations. Instead of waiting for the report the Minister has introduced this legislation which will give statutory effect to something which has been the practice for many years under the minerals Acts. When I was Minister I granted and renewed prospecting licences under the existing legislation and I do not recall ever being informed by the legal advisers in the Department that there was a doubt about the licences I was signing. Deputy Treacy was in the same position and he has expressed the same view.

The Minister said that certain matters had arisen which required the legislation to be brought forward quickly. Yet he has not given a full explanation. He said:

Many of those licences were renewed, in some cases a number of times, by successive Ministers in good faith, including hundreds of licences currently in force. The long-standing practice of renewals and successive renewals has not given rise to any difficulty or challenge. Legal advice, however, has drawn attention to the lack of specific statutory provision for licence renewals and put the case that fresh licences should have been granted after the term of the original licences expired. Therefore, there is pressing need for legislation to validate all renewals to date...

I find it extraordinary that the Minister has not substantiated this claim with facts. He may be wasting the time of the House by bringing forward the legislation at this time and he seems to be treating the minerals industry in a very offhanded manner. I am surprised that he should do this.

What has given rise to the need for the legislation? What is the legal advice which has indicated the absolute pressing need to introduce the legislation at this time? I am not aware of any such need and the person who succeeded me in the Department has confirmed that he is not aware of it either. In order to fill a gap in the Government's legislative programme a pressing need for the legislation has been concocted. I do not know why we are being asked to debate the Bill today when there has been no legal difficulty in the past and there is no evidence of any new pressing need.

The level of prospecting is much less than the industry would like and there is a pressing need to update all of the administrative arrangements so as to ensure that the industry is given greater encouragement to expand its prospecting activities. In 1989 there were 770 prospecting licences. The information given by the Minister in reply to parliamentary questions from me conflicts with the information he gave to the House this morning. If the figure of 486 is correct then this is a reflection on the level of activity in the industry.

I would prefer to make my points about the mining industry in general in the context of the overall review. There is no point in debating this matter in any great detail at this time given that my contribution would be more valuable if I had the benefit of the opinions of the group set up by the Government. I would prefer to have an opportunity to study the report — I thank the Minister for confirming that it will be published — and to consult with the industry before making any comments. This legislation fills a gap in the Government's legislative programme. This is a most unsatisfactory way to deal with this important industry.

The Minister is well aware of the potential of the mining industry — very valuable ores have been discovered at Galmoy in his constituency. An application for a mining licence has been made for this discovery but the discovery in Lisheen has not yet reached this stage. A number of issues have arisen which have slowed down the process for bringing that development to mining licence application stage. I do not want to go into the details of any particular application but all environmentally friendly sustainable mining operations should be given every assistance not only under existing legislation but under new legislation which deals with issues which may not have arisen in the past. There is an obligation on the Government to introduce such legislation so as to benefit the economy and bring forward the day when people will be able to secure gainful employment in the industry. Happily many of these finds are in areas of high unemployment where there are few employment opportunities.

I have no major objections to the legislation which will merely give statutory effect to something which has been the practice in the past. However, I reserve my right to table amendments on Committee Stage.

Minister of State at the Department of Transport, Energy and Communications (Mrs. Doyle)

I strongly support this Bill. A clear legal framework is vital for mineral prospecting and development generally. The three Minerals Acts, 1940-79, have served us well but need to be continually reviewed to ensure that they continue to serve national policy. A review of those Acts is one of the tasks allotted by the previous Government to the Minister for Transport, Energy and Communications with recommendations covering all of the issues of importance to mineral prospecting and development in the State. I look forward to the report of the review group which is due to be published shortly.

The Attorney General and the Government's legal advisers have identified serious gaps in the 1940 Act. Therefore, the Minerals Development Bill, 1995, must be enacted and this will not prejudice the work of the review group. The Bill is designed to provide clear statutory backing for long standing arrangements for renewal of mineral prospecting licences and for charging fees to examine applications for State mining leases and licences. In any case, the fees would relate to the specific nature of the individual project and the issues to be addressed by the Minister to satisfy the statutory obligation that the public interest is served by granting a State mining lease or licence in that particular case. I am sure all Deputies agree that there should be effective penalties to stop illegal mining and that bringing the original penalties in the 1940 Act up-to-date is necessary and long overdue. That is dealt with in section 6 of the Bill.

I referred to serious gaps in our existing mineral development Acts that the Bill is designed to fill. In sections 2 to 4 the Bill expressly provides for the renewal and successive renewals of mineral prospecting licences which has been the practice since the 1940 Act came into operation, but without statutory cover. I do not need to spell out in great detail the chaos that would ensue in the industry when it became widely known that renewal of mineral prospecting licences over the years had been carried out without statutory cover. Many licences fall to be renewed in 1995 and 1996. I am sure the implications of the legal advice are abundantly clear to all Members, particularly those who held Ministerial posts in the Department. Those implications were obvious to the last Government and the former Minister, Deputy Cowen, was preparing to bring this legislation before the House before the fall of the Government. He was not going to wait for the report to be published. When one considers the implications of the legal advice, the facts are obvious.

Application fees for State mining leases and licences to provide a clear statutory basis for securing the Minister's costs for considering such application, through engagement of external consultants and otherwise, are dealt with in section 5. Fees have been deducted from successful applicants, but there has been no statutory procedure for reclaiming expenses in investigating and getting the advice the Minister requires from unsuccessful applicants. A great deal of time, effort and expense must be invested by the State in analysing each application that comes before it.

Offences by body corporates, such as companies and other organisations, as well as offences by individuals which are already provided for under the older Act, are introduced in section 7, the provisions of which update the offences to make them more relevant in the present cost climate. The Bill provides an opportunity to increase the original penalties for a wide variety of offences to deter would-be offenders and protect State royalties. The remaining sections are standard features of Bills, namely, the definition section, provision for ministerial expenses in administering the Bill when enacted, the short title and its collective citation and construction with existing Mineral Development Acts, 1940 to 1979.

The main question by the two previous speakers was why the legislation could not wait until the Government is in a position to make decisions on the recommendations of the national minerals policy review group, in a report we expect to be published next week. I accept that is a reasonable question. When the Bill was presented to me and as the report is imminent, I asked why we could not wait.

Mr. Molloy

We know why, there is no other legislation available.

Mrs. Doyle

The Deputy's cynicism is not worthy of his experience in this area. The Deputy held a ministerial position in this area.

Mr. N. Treacy

He was never a cynic.

Mrs. Doyle

Deputies Molloy and Treacy were Ministers in the Department.

Mr. Treacy

And we enjoyed it.

Mrs. Doyle

Perhaps more than any other Deputy, they will appreciate the sensitivity of the position in which the Government is placed and the vulnerability in terms of lack of statutory cover in regard to the two areas to which I referred. As the matter has been brought to the Government's attention by its legal advisers and the Attorney General, there could be a field day for those who would be of a mind to abuse the position.

Deputy Molloy adverted to the fact that he was informed in a parliamentary question he tabled last week that there were 516 prospecting licences. In his speech today the Minister stated there are 486. On 22 March there were 516 prospecting licences. Many have not been renewed and many fall for renewal at this time. Today, there are only 486. The correct facts were given by the Minister last week and today.

Mr. Molloy

I accept that, but the main point is that the number is decreasing all the time.

Mrs. Doyle

That is true and we must ask why.

Mr. N. Treacy

That is why we want the report published.

Mrs. Doyle

In 1989, during the gold rush, there were between 700 and 800 prospecting licences. Some were renewed and others were not, but there has been a significant drop in the number in the past week.

Mr. Molloy

There is major frustration in the industry in waiting for new legislation.

Mrs. Doyle

I accept that, but this legislation is crucial.

The engagement of external expertise by the Department was also criticised. The Department and the GSI are not involved in day to day mining and, therefore, are not in a position to assess at first hand what should be proper state-of-the-art technical approaches to long term development of national resources. The Minister must have independent advice on, for example, the nature and quantity of ore reserve and the financial robustness of the project in which no other authority is interested. It is only in the case of major projects that the Minister would consider seeking expert advice outside the State. Small to medium-term projects are handled by experts within the State. To safeguard the interests of our reserves in this area and the resources which belong to the people we seek up-to-date state-of-the-art advice, particularly in the case of large projects and I do not believe that approach should be criticised. A similar approach was adopted when Deputies Molloy and Treacy were Ministers.

Mr. N. Treacy

What is the role of the departmental professionals?

Mrs. Doyle

There is nothing new in this approach. It is very soundly and rationally based.

Mr. N. Treacy

It is very cumbersome.

Mrs. Doyle

The two previous speakers referred to handling fees for examining applications for State mining leases and licences covered in section 5 of the Bill. The section merely puts into clear statutory format what has always been the practice, but legal advice pointed out that it needs to be nailed down in a statutory format and this is what the Bill is doing. In the case of Arcon, the fees ran to a substantial figure and were paid as decided by the then Minister, Deputy Cowen. Any proposals which Deputies may make regarding section 5 will be carefully considered on Committee Stage. We look forward to hearing the views of Deputies at that time and amendments will be carefully considered. Fees are decided on a case by case basis. The £200,000 fee is for the Lisheen project only, which is the only one of its size under consideration. It is not true there is a standard fee in all cases, and this must not be implied. For example, in the case of a small coalmine, the State might have to pay a few thousand pounds for expert advice before deciding if it is in the public interest to grant a State mining lease or licence. There is no standard fee; applications will be decided on a case by case basis.

Recently I represented the Minister for Transport, Energy and Communications at the annual conference of the Prospecters and Developers Association of Canada held in Toronto. I was greatly impressed by the level of interest in Ireland by the mining industry around the world, as Deputy Treacy was when he represented the Government at the same conference last year. I was impressed also by the effort other countries put into promoting their own prospects. We must not be found wanting in this regard. Our own display stand, staffed by members of our exploration and mining division in the Department of Transport, Energy and Communications was extremely well received and served as an excellent focal point for industry contact with the current situation here. I commend the division for the excellence of their display and the communication they opened up with the mining industry worldwide, keeping Ireland on the map as a prospective area for mining. We must capitalise on the interest in Ireland shown in Toronto and encourage greater participation from major international players as well as our own domestic companies in the mining industry here.

Above all, there is an urgent need to put what I term the "feel good factor" back into the mining industry. Given the controversies and court cases, not least the Croagh Patrick issue, I can understand why the public have backed off in their appreciation of the importance of extractive industries generally but particularly what we refer to as the mining industry. We need to give much more consideration to how the regulatory authorities in this country interact. When a foreign company comes to town, as it were, we should try to provide as close as possible to a one-stop shop service to give the impression that we are interested in their investment, their expertise and the state-of-the-art technical know-how they can bring to the mining industry in Ireland. At the moment there is a perception — it may be a little unfair but we must face up to the fact that it is there in the worldwide industry — that if one comes to Ireland it is the survival of the fittest in getting through the myriad of State regulations, planning and environmental regulations and revenue considerations. There are interested, very important companies around the world, who may have prospecting licences; they are not prepared to move further but are watching to see how the industry develops here and how our regulation of the industry develops on a statutory basis. They continue to watch rather than come and invest. We must ask why that is so, why when we have some very interesting potential extracts, they are not actively engaged in Ireland at the moment. I suggest that we do not make life easy. We should protect our natural reserves, our environment and the interests of the people, but they do not exclude proper development of our natural resources, our mining resources. We must have a system whereby potential prospectors and developers can get advice and information on the statutory requirements, the total regulatory picture and on how to proceed. If we give a prospecting licence to a company, it implies that if it finds mineral or ore of commercial value we will give it a further licence to develop that mine when our requirements are met. I feel strongly that the delivery of a prospecting licence indicates that an area is suitable for mining provided there is a commercial ore present. That is not the way we have operated and there have been many controversies — some not of our making — that have soured international interest in Ireland.

Mr. Molloy

That is the current practice in the Department. The Minister should have made it statutory by putting it in the Bill.

Mrs. Doyle

There are examples. We will not open the controversial examples where that was not the case. Witness the gold rush and where that ended. That has not always been the case, and for understandable reasons. We must encourage international and domestic investment and, before we deliver prospecting licences, iron out all the possible problems in an area or rule the area out. If we are asking companies to invest millions of pounds in investigating the possibility of a commercial find, there is an obligation to allow them to develop it when they abside by the statutory regulations of that area.

Mr. Molloy

That has been dealt with. I changed that when I was there.

Mrs. Doyle

This is an important issue. The one clear message I got from my visit to Toronto, where 3,000 exhibitors and mining companies from all over the world gathered for a week's annual conference, was that they are still unclear about the regulatory climate here. That may be because our PR in terms of what we have available is not as it should be. It may also be because we have not honed the system to make it user friendly. Making the regulatory system user friendly does not make it easier for a company to desecrate our environment in any way. We will have strict environmental requirements. However, companies should know the rules of the game so that we can make them abide by them.

Today's Bill is only the tip of the iceberg. We need an in-depth debate about whether we should encourage the industry far more than we do. I happen to think we should do that and have the right safeguards in place because this industry is underdeveloped and not providing the number of jobs or the amount of wealth it should without threatening our beauty spots and heritage areas. We need to get our act together. Everyone is afraid and there has been a slight backing off since the controversies and court cases over many years. The "feel good factor" is not there. The people are distrustful of mining as an industry. There is no need for that. We must look to what is needed to restore faith in this industry; I urge the Government to think along those lines.

There cannot be development without some impact on the environment — it need not always be adverse or permanent. For too long developers of all kinds have denied responsibility for the environment, and environmentalists have denied the need for development. Philosophies which are anti-development are simply not sustainable and we cannot avoid all environmental impact because to do so would mean opting out of the industrialised world. If we do not grow it, we must mine it. It is as simple as that. Everything we use in the modern technological industrial world, the world we hope to hand on to our children, a world which will provide jobs and the quality of life they should have is either grown or mined.

We know where we are with what we grow. Let this Bill be the opening of the debate about putting the "feel good factor" back into our mining industry. That means sustainable development for the mining and extractive industry. It means not feeling our environment is threatened by properly regulated extractive industries. It means having a user friendly regulatory system, that will attract overseas investment to give a good return to Ireland and will encourage sustainable development. Let us open the debate today and treat mining and the extractive industry as a positive one which has much to contribute to our community. We have been afraid to do that but it is time we started.

Mr. Hughes

I listened with interest to the Minister's contribution, particularly her off-the-cuff comments. The policy review report, which will be issued shortly, will be read with interest within this House but, more particularly, outside this House. I agree it is time for a public debate on this matter.

The Minister referred to Toronto in Canada which has a long established mining industry. I sincerely hope the work of the review group takes on board the procedural and phasing processes built into Canadian legislation. The extreme precautionary approach taken in Canadian legislation encourages mining but on a phased basis from application stage to production.

The mining controversies in west Mayo, which perhaps took the "feel good" factor out of mining, may have encouraged people to take a more cautious approach to an industry which can cause untold damage. People who practice caution are not necessarily anti-mining.

I have no difficulty with the principle of the Bill. If there is a lacuna in the law it is only right that it should be remedied with this straightforward legislation rather than waiting on the report of the review group which, I hope will be comprehensive and will contain many recommendations to be debated both in this House and by the industry. If we were to wait for legislation to come before the House in respect of any changes which will arise from it, we might have to wait a considerable period.

Any delay, I would have thought, would be on the question of section 5 and the application fees being charged for mining facilities as against prospecting application fees. That critical matter should have been discussed in detail by the policy review group. I am not aware of the membership of the committee but I presume it includes people involved in the industry. I presume their views on the costing of proposals etc. are being expressed. They are now being prejudiced by a statutory provision but it is not a fatal flaw in the Bill.

Exploration and prospecting for minerals has a chequered history in Ireland. For years we were told there were no minerals but extensive prospecting has proved Ireland has an increasingly rich geological inheritance. In the 1980s and 1990s, however, parallel with increased and extensive prospecting and exploration, two issues fortuitously arose. First, there is greater public awareness of the necessity to protect our environment and to build renewable and sustainable developments based on local resources. There is substantial public education and awareness of the absolute necessity to protect what we have rather than risk part or all of our natural inheritance for the elaborate promises and expectations conveyed by mining executives when they move into a locality.

I do not know whether much prospecting has taken place in the Minister's constituency — some of my colleagues were formally charged with the development of policy in their constituencies — but when mining executives come into a town in my area they make all types of elaborate promises. Local people are not aware of their rights or entitlements. Their thinking is clouded by the fact that our legislation gives absolute rights to mining companies who have either an exploration or a prospecting licence which allows them to do whatever they want. That is not to say that both cannot go hand in hand but I will develop that point later.

Second, a substantial legislative and administrative framework was implemented in the 1980s and 1990s to protect our citizens in planning terms. Our courts have also exercised their powers of interpretation in considering the rights of citizens and where rights are infringed, having regard to the fundamental rights in our Constitution.

I welcome the fact that people have been empowered through educational and legislative developments and legal and judicial interpretation to ensure that their personal and property rights are developed. This will ensure that their quality of life, livelihoods and environment are not unduly impinged upon and it is recognition that the Legislature has a responsibility to encourage and support developments which can create job opportunities and add to our national wealth.

On a weekly basis we read and see on our television screens and in our newspapers news about environmental disasters which occur in developed and undeveloped countries. The United States, Canada, Australia and South Africa — countries which have a corpus of legislative and environmental protection — have suffered gross pollution, disasters and many minor incidents which have permanently scarred their environments. Those countries also have their success stories in mining exploration and we are fortunate to be behind them in terms of the development of our mining industry because we can learn from their mistakes and build on their successes.

Our mining policy must never be underpinned by the philosophy of jobs for jobs sake, despite high unemployment levels in rural areas. It must never be a case of short term gain as against long term loss and environmental degradation. The State has the right and authority to maximise its natural resources and to ensure that Government policy encourages this. It must ensure also that those from a pro-mining culture who maximise their positions — be they mining and exploration companies or their shareholders, either local or foreign, and the property owners on whose land valuable minerals are found — are not entitled to trample on the rights of a local community and ignore its genuine concerns.

Our legislation allows for objections, appeal hearings and judicial review procedures through our courts, but where genuinely based objections are raised, the appetite to follow through on them is often measured in terms of the high legal and consultancy fees, which can amount to hundreds of thousands of pounds, that small rural community groups must pay.

Rural communities, many with sparse populations, are ill equipped to fight the might of well resourced mining companies because, invariably, the forum in which to express their genuine concerns is statutorily based and frequented by lawyers, barristers and specialist engineers whose charges are great for one day's representation.

In my professional role as a solicitor I have employed barristers whose fees for one day's attendance at an oral Bord Pleanála appeal hearing are £10,000 per day. That puts the beef tribunal and other fees into context. This is not uncommon and is the norm for a small group of specialists who are usually retained in major planning and environmental disputes. What small group can afford to ensure its right are fully protected? People are entitled to explore fully and use the legislative framework to which we constantly refer to get the maximum protection.

In west Mayo we will never accept anything other than the maximum protection of our fragile environment to which we look for its potential to create real jobs which are so necessary in our tourism, health care and the newly expanding mariculture and aquaculture industries. We are ever mindful of the irreparable long term damage that can be caused to the foundation stone of the west's economy, namely agriculture, by polluted water courses and streams and wind blow from poorly maintained slag and spoil heaps of worked minerals.

There have been consistent and prolonged campaigns of opposition to certain mining ventures in my constituency. These campaigns were fought purely out of concern to protect what we already enjoy and depend upon for our livelihood and not to put it at measurable or immeasurable risk. Those involved in these campaigns want to be able to sleep at night knowing that what they are doing is ensuring they will pass on their inheritance of a beautiful landscape and a quality of life to the next generation rather than have the next generation settled in an area which tourists and environmentalists visit only to see what they got wrong.

I am coming from a position of not being opposed to mining per se. However, where recoverable resources are identified the highest possible standards should be maintained at all stages of the project's examination and on no account should the prospects of a few hundred jobs for a period of five, ten or 20 years cloud and convolute the thinking and rationale of our public administration and those charged with responsibility for formulating mining policy or the examination of the various stages of a mining application from prospecting, planning and construction to final exploration and transport of the product from the region to downstream further development. One's views are fashioned from life's experiences. Among the first prospecting licences of recent times, which eventually caused a widespread public outcry, was that which involved one of our national monuments, the Reek, better known as Croagh Patrick, a place of national and international pilgrimage.

This Bill deals with slight adjustments to the procedural aspects of granting mining licences and clearing up any possible lacunae in our legislative framework. When a company is interested in searching for minerals in an area it applies to the Department of Energy for a prospecting licence, completing an application form stating the area in which the licence is sought, a description of the proposed project, expenditure estimates and the relevant qualifications of the explorers.

The reference in section 5 to charging fees needs clarification. It refers to certain situations where fees can be charged to cover handling costs. The explanatory memorandum refers to it in more detail. Do the four situations referred to in section 5 (1) cover the payment of fees for the consideration of an application for an exploration licence? I understand that until recently the application fee for a prospecting licence was only £50. What fee is charged at present to lodge a prospecting licence application? We have heard of fees of £200,000 at maximum but usually it is in the region of £2,000 to £3,000. What is the fee to cover the officials time in examining an application for a prospecting licence?

Recommendations are prepared by the exploration section of the Geological Survey of Ireland and the mineral division of the Department of Transport, Energy and Communications and are then transmitted to the Minister for final decision. I am sure that in almost all instances, at the preliminary stage, the Minister of the day does not vary the recommendations that come to him on this initial application. Looking at the names of townlands on an Ordnance Survey sheet on a desk is no substitute for climbing up the well worn pilgrim way of Croagh Patrick. How anyone could have recommended the granting of a prospecting licence for such an area is incomprehensible. Without saying anything further about the way that particular application was adjudicated on by the Geological Survey of Ireland and the minerals division of the Department, the then Minister, Deputy Molloy, made the correct decision to revoke the licence granted, but not before the people of the area became much more aware of their rights and the controls imposed by legislation on development, even if it is only at the prospecting stage. Up to then many people believed that all activity carried out during prospecting was not subject to planning control and was exempt from it.

We now know that planning permission is required for roadways or pathways necessarily made for the purpose of carrying out prospecting. The overgrowth of bog and heather which was removed has never to this day been properly reinstated on Croagh Patrick and is a reminder to all concerned of the folly of believing that reinstatement techniques are successful all over the world. Whenever the Minister is in West Mayo — he was there in June last — he should look at the scarring on the side of the Reek where reinstatement was carried out more than two years ago.

A prospecting licence cannot issue until a notice of intention to grant a prospecting licence is advertised. Under section 2, is publication of the public notice to be in a newspaper circulated in the locality? Should this not apply also to publication in a local newspaper or, better still, both? The added expense of making it a statutory requirement to publish notices in both a national and local newspaper circulating in the locality is minimal considering the purpose in the first instance of making it a requirement to publish. The wording of the usual public notice states that the application can be inspected for a period of 21 days, usually at a Garda station, but the notice does not state specifically that the public has a facility to make objections nor does it state that there is a 21 day limit for objecting. If I am correct, this position should be rectified and the general public should be left in no doubt as to its entitlement to lodge objections and observations or inquiries. The public may make recommendations rather than simple objections. I know that objections and inquiries are carefully considered and may result in attaching additional conditions to the licence to be issued, but most importantly many objections have the value of alerting the Minister to public concern, which creates the climate for the Department to move more cautiously.

What is the departmental practice in seeking from the licence applicant cash security or an insurance bond? I am led to believe it is departmental practice to seek only £1,000 cash or insurance bond at the prospecting stage, presumably to cover all claims against any activities carried out by the licensee in the performance of his activities. This is a derisory sum of money if the legal position is that the general public who may be affected by such activity has the right to sue the Minister in the event of the company being non-existent.

As in the case of Croagh Patrick, the water supplies to downstream farms were polluted with diesel on several occasions. What if the pollution was so gross as to last for several weeks and affect a guesthouse in the summer months? A householder would have to try to sue an exploration company, whose very existence and longevity is dependent on exploration success. The company could be long gone, liquidated or otherwise and have ceased business before the court's proceedings are determined. What if somebody who is out hunting, walking or generally exploring the wilderness falls into a trench and injures himself? Why is the Minister seeking a bond if there are no circumstances in which he could be sued by the general public? It is important that this point is considered. I appreciate that at the planning stage there is a requirement for bonds to protect roads.

Damage can occur to an environment at the prospecting stage. Is the Minister satisfied that the sum of £1,000 is sufficient? Has the public the right of recourse to claim where the exploration companies can come and go? We have seen hundreds disappear into thin air. Exploration is a high risk business. Most of the laws concerned with mineral development in Ireland were drafted with the aim of simplifying the working of minerals and of ascertaining the ownership of minerals rights, in the interests of economic expansion and attracting foreign industry. Hence, the rights of landowners and affected communities, the active protection of the environment and the criteria for assessing the suitability of mining in sensitive regions have received little legislative attention. The following suggestions represent only a cross-section of the numerous changes required to meet the problems of modern mining. The Minerals Development Act, 1940 should be amended to specifically set out the rights of landowners as regards access, compensation not only for drilling operations but also for trenching, road building and vehicular disturbances. The public interest should be redefined to include the community's opinion of the development with a strict process for the assessment of that opinion as well as the Minister's opinion.

Prospecting activity should be recognised as involving two stages. The first, consisting of superficial surveillance and minor rock sampling, can arguably be considered to have little or no impact on a licence area. The second, involving major earth disturbance and building of access roads, must necessarily be defined as having a significant environmental impact. As such the planning Acts should be amended to include all aspects of second stage prospecting. In particular, areas defined as being of special amenity or containing scenic views worthy of preservation or which have archaeological, scientific or religious significance should be more precisely protected from any disruptive activity such as trenching, drilling, road building or virtually any phase of mining without planning permission.

Mr. Sheehan

I welcome this important Bill in view of the huge interest by national and international mining companies in exploring the country's mineral content. I congratulate the Minister of State, Deputy Doyle, on her foresight in attending the international conference in Toronto recently. It indicated to her that the time was right to home in on the vast opportunity that exists for the development of our mining industry, which will be a valuable asset to our economy.

The Bill is designed to fill gaps in the Mineral Development Acts, 1940 to 1979 by expressly providing for successive renewals of mineral prospecting licences some of which have been in operation since the 1940 Act was passed. It gives the opportunity to increase penalties in the 1940 Act for such offences as unlawful mining, obstruction of authorised officers, etc, so as to deter would be offenders and protect income from State royalties.

I understand 486 mineral prospecting licences are in force of which 300 are due for renewal in 1995 and the remainder in 1996. I am pleased that the exploration and mining division of the Department of Transport, Energy and Communications will pay particular attention to performance to date by the licensee, including the submission of required works, reports and compliance with the other conditions of the licence. We cannot allow mining companies to sit on a licence when they receive it. When the Department contemplates the renewal of licences it is important they bear that in mind. I would advise the Minister to insert into the Bill a clause whereby applicants for mining prospecting licences will be required to give a commitment that they will undertake a specific programme of exploration in the area concerned before renewal of their licence is agreed. I would not like to see clever prospecting companies take advantge of the fact that proper legislation was not enacted and put a stake holder on properties which could turn out to be a great national asset. They should not be allowed to sit on them and debar other mining interests who may have a policy of developing their prospecting areas within a specified time and give valuable employment. Employment is the name of the game and we must legislate to that effect. If we do not we will be exploited by international mining moguls who might sit upon what could turn out to be a major financial asset for us.

The Bill is a precautionary measure. Sections 2 to 4 are designed to give specific statutory cover for long standing practices. I understand the pressure the Minister is under to introduce the necessary legislation before the report of the national minerals policy review group is published which, I understand, will be in about a month's time. The Minister is right to introduce this legislation. It will be of paramount importance to the mining industry.

The Bill is designed to safeguard the renewal of thousands of mineral prospecting licences effected in good faith by successive Ministers over the years since the 1940 Act came into force. I am pleased that section 5 copperfastens the long standing practice to require applicants for State mining leases and licences to pay an appropriate fee to cover the Minister's costs in considering the applications. I understand that, in the case of a major complex mining project, external consultancy advice could cost anything up to £200,000, a sum which the Minister should be entitled to recover from the applicants whether successful or not. We cannot expect our citizens to finance international mining moguls who may come to this country and exploit loopholes in the legislation.

The Minister introduced rigid guidelines for good environmental practice in mineral exploration. Safeguarding our environment should be an integral component of all exploration programmes. The Department's laws and regulations for the protection of the environment should be rigidly applied. While environmental aspects must be adhered to, we cannot go overboard with environmental regulations to the detriment of our valuable mining industry.

The regional environment should be maintained and safeguarded, but we should not be too quick to act on the comments of objectors who may not have a thorough knowledge of a project and may impede the progress of companies exploring the possibility of developing our viable mining industry in any region. Environmentalists have a right to object but their objections must be logical. I would hate a position to develop as a result of the enactment of legislation whereby organisations or individuals who represent environmental organisations would have the power to prohibit the establishment of an industry which could be of vital importance to the hinterland of a job-starved community.

I am pleased that under the legislation holders of prospecting licences must take responsibility for ensuring that all their contractors, sub-contractors and employees are fully informed of the guidelines and legislative requirements in this area. I am pleased also that there will be close liaison with relevant landowners and the regulating authorities. Waste disposal and management during exploration work are important aspects of good environmental practice.

I am pleased to note that any change to vegetation, land surface or landowners' property that may occur as a result of exploration activities will be minimised and corrected without undue delay. I would not like the legislation to permit mining activity which would result in huge scars on a mountainside. Valuable minerals may not be discovered. If a proper geological survey is carried out, I am sure such disastrous consequences could be avoided. The lack of knowledge of the minerals of our country is a sad reflection on the performance of past Governments. Who knows what minerals are in my constituency of Cork South-West? There may be vast quantities of copper, gold, lead, zinc or ore in the mountain ranges from Mizen Head to Malin Head in Donegal? Past Governments were negligent in not carrying out a geological survey many years ago. I hope it is not too late to carry out one. The Minister should ensure that a proper geological survey of the country is carried out to ascertain the mineral content of our mountain ranges and territory.

It is of paramount importance that agreement should be obtained from landowners before entering their lands to carry out geological mapping, surveying, trenching or drilling. That is vital and must be included in the Bill with no strings attached. I am pleased to note that exploration companies will accept responsibility for the actions of their contractors, sub-contractors and all persons employed by them in connection with works except for actions carried out expressly at the request of the owner or occupier of the land. I am pleased the Minister is taking steps to minimise the noise problem that may arise when drilling in close proximity to residential areas. Steps must be taken to reduce noise levels to an acceptable level of activity and should not be permitted through the night. Residents should be able to sleep at night without being troubled by the continuous pounding of boring machines and so on adjacent to their premises. A provision should be inserted in the Bill to ensure that will not happen and I hope the Minister in his wisdom will include one. Mining activities should be confined to certain hours of the day and should not be allowed proceed through the night. All residents are entitled to be treated in a similar fashion in that regard.

The safety of animals grazing on pastures adjacent to drilling sites must be taken into consideration. Strict safety laws must be adhered to on drilling sites. There is an onus on the Minister for Transport, Energy and Communications, who has responsibility for the National Licensing Authority, to ensure that all mining development proposals are thoroughly and expertly examined before permission is granted to proceed with them. It is vital for the Minister to ensure that valuable national mineral resources are effectively and efficiently developed and State revenues assured. There is an obligation on all Ministers to protect the environment. Before permitting a development of a national mineral resource, the Minister must be satisfied that such development will cause minimal harm to the local environment. I am pleased that the report of the National Minerals Policy Review Group will be available to the Minister next month. I hope the Government will act immediately on the publication of that report and implement any suitable recommendations proposed by that group.

It is interesting to note that the outlook and prospects for the mineral industry is apparently bright worldwide. The mineral sector is beginning to recover as economies emerge from the recession. Tara Mines zinc-lead operations at Navan, the fifth largest in the world, employs 750 people and, according to estimates could continue to operate for another 20 years. A mining licence was granted in respect of the proposed Galmoy zinc-lead mine in County Kilkenny on 3 February for a period of 21 years to Arcon Mines Limited by the Minister for Transport, Energy and Communications. I understand that development will employ up to 350 people in the construction phase and, when fully operational, 200 people full-time.

We have enormous potential for the discovery of additional significant ore bodies, as exemplified by the Galmoy and Lisheen finds in counties Kilkenny and Tipperary. The time is ripe for us to utilise all those valuable assets. Prosperity and employment are the name of the game. Any steps the Minister can take to foster and promote our minerals exploration drive is of enormous importance not only to this but future generations.

We must remember that, at the turn of the last century, huge deposits of copper and ore were mined and exported from this country by English mining companies. The Minister should consider undertaking a major minerals exploration survey of the country to ascertain the nature and volume of such minerals which could yield untold wealth for our economy in the future.

Mr. Boylan

I wish to support everything Deputy Sheehan said and compliment him on his well-researched contribution on a subject in which he has a great interest. I should like to compliment the Minister and the Government on the introduction of this Bill despite the moaning of the Opposition that it is being rushed through the House. We must remember that many matters were left undone by the previous Government. Its attitude was not to touch anything, not to run into trouble for fear the party might lose votes, and take the soft option. That is not the policy of this Government, which faces up to and deals with the issue confronting it.

The overall objective of this Bill is to tidy up the legislative provisions on mining, to tighten up loose ends. We have been scratching the surface in regard to the nation's hidden wealth. We do not know the extent of that wealth. No detailed survey of those resources has been undertaken. We have a general idea of the extent of our mineral wealth and some people have been lucky and are now rich. We cannot afford to continue to conduct our business in that fashion, our resources must be surveyed and properly mined. When a licence is applied for we must ensure it is granted to a company that is serious about its business. Some companies have held licences for years and have not carried out any explorations, they leave undisturbed the mineral wealth they believe to be underground.

I am aware also of a very important gypsum industry in Kingscourt in County Cavan, which is extremely successful and makes a huge contribution to the construction industry. It provides much needed employment in that area. There are deposits of gypsum in other areas capable of being recovered. As I travel to this House through County Meath I pass the Navan mines where there are 24-hour shifts and many people in meaningful employment recovering the very rich deposits of lead and zinc being mined there.

There must be overall control of mining. I presume the multi-national mining companies are able to recover the costs of exploration. The extraction of mineral deposits some ten to 20 years ago may have been unprofitable but new technology and mining equipment has rendered their extraction profitable. However, with deep boring and mining comes the problem of danger to our environment. Such work must be carefully scrutinised and protected at all times. There have been incidents of serious pollution, causing health hazards, by unscrupulous companies with no other concern than extracting the rich deposits for their benefit and those of their investors.

The Bill is designed to fill gaps in the Minerals Development Acts of 1940 and 1979 by expressly providing for the renewal of minerals prospecting licences and to validate licences renewed to date, the practice since the enactment of the 1940 Act, but without any statutory cover. It provides for application fees for State mining licences in order to provide a clear statutory basis for recouping the Minister's costs, through the engagement of external consultants and others as stipulated in section 5. That makes common sense. Section 7 provides for offences by bodies corporate, such as companies and other organisations, in addition to offences committed by individuals.

The Bill affords an opportunity to increase the penalties contained in section 6 of the 1940 Act for a variety of offences. Penalties that would have been appropriate in the 1940s certainly would not be appropriate today; the fact that they have not been addressed to date is nothing short of a national disgrace. These relates to a variety of offences such as unlawful mining, obstruction of authorised officers protecting State royalties.

Members of the Opposition and others suggested that we were running ahead of the terms of reference of the National Minerals Policy Review Group. That is not true. This Government will consider whatever recommendations that group makes and draws to its attention. We should examine the potential and associated costs of a more aggressive approach to the promotion of this country as a favourable location for the exploration of minerals. We do not know the extent of the nation's hidden wealth although it is believed that there is a vast amount of minerals for extraction. We must know precisely what exists and go about its exploration in a proper, planned manner. The possibility of royalties to the State would be extensive, as would the possibilities of extensive job creation. Any Government that goes about its business in that manner must be supported and complimented.

I would also advocate considering all that has been said about protecting landowners' rights, a reversion to the Occupiers Liability Bill, 1995 discussed here some weeks ago. Nobody has the right to assume, simply because they have obtained a licence to explore for minerals in a certain area, they can walk onto any private property and inform the owner they intend doing this, that or the other. We must pay due attention to our national heritage. It must be appreciated, understood and protected at all times. It is not enough for such people to enter private property in a jeep, or with bulldozers to excavate here and there and bore wells to ascertain whether there is some mineral to be extracted and depart leaving a mess behind. Those are the two sides of the coin.

Needless to say environmental groups and others will parade with placards and campaign against such developments. Their point of view can be extreme but it should be taken into account and a balanced approach adopted to ensure the best possible benefit for the country. If we go about our business in that manner, having regard to the examples I have given of Kingscourt in my county and Navan, further minerals extraction will result in the creation of worthwhile jobs. Somebody coined the phrase, which I think is true, that if we do not grow it, we have to mine it. While this is principally an agricultural country it is recognised that we have vast deposits of minerals. Both industries can work closely together without interfering with each other, further develop the riches of this nation and provide employment for our people. Many of our young people who emigrate to Australia, New Zealand and Canada do this type of work. If such work was available they would return with experience gained from working in mines and on other such activities.

I compliment the Minister on bringing this legislation forward and I hope it will be successful.

Mr. Hogan

I commend the Minister on introducing the Bill. I was amused at the statements made during the course of this debate by Deputy Molloy who criticised the extent of the legislative programme brought before the House by this Government. This does not do justice to the importance of this legislation and the mining industry. The Bill is specifically designed to fill the serious gaps in the various minerals development Acts from 1940 to 1979 by providing for the renewal and successive renewal of mineral prospecting licences by giving the Minister the statutory authority in respect of application fees for State mining leases and licences and the recoupment of associated costs incurred by the Department in respect of consultancy reports etc. It also reviews the penalties to deter would-be offenders in respect of unlawful mining and to protect State's royalties income.

The necessity for this legislation came about through the recent upturn in mining prospecting and the success of that prospecting in respect of two companies, namely, Arcon and Ivernia. It has become necessary to safeguard renewals and successive renewals of hundreds of mineral prospecting licences affected over the years and to make statutory provision for further renewals which would be considered by the Minister in respect of each prospecting licence.

It is clear from the necessity to introduce this legislation that some doubts have been cast, in legal circles, about the statutory authority of the Department to protect minerals, both State owned and privately owned, and on the need to make legislative provision for further renewals of those prospecting licences. It is a measure of the Government's commitment to mineral development, particularly in view of the proposals advanced recently by Arcon and Ivernia, that the legislation has been introduced with such speed by the Government and in advance of other recommendations which are likely to form part of the national minerals policy review group, whose report is expected in the next month.

Sections 2 to 4 deal with prospecting licences. Section 5 deals with the requirement of applicants for State mining leases and licences to pay the appropriate fee to cover the Minister's costs when he considers those applications. I take this opportunity to ask the Government, and particularly the Minister for the Environment — perhaps the Minister of State, Deputy Stagg, who is present would convey this view — to review the planning fees associated with mineral development and other large scale developments for planning permission. The costs which have to be borne by local authorities associated with assessing these planning applications are prohibitive. As a member of Kilkenny County Council I am well aware of the time and resources deployed by that local authority to deal effectively and efficiently with the Arcon Mines Limited planning application for mining development at Galmoy, County Kilkenny, in recent years.

The maximum planning fee that could be charged for this application was £10,000. It is obvious that this fee is unrelated to the size of the project. Accordingly it is necessary for the Department of the Environment to introduce a sliding scale of planning fee to allow local authorities recoup more of the costs incurred in dealing with the complexities of such an application. Kilkenny County Council employed external consultants to advise the council on the planning application in respect of Arcon Mines Limited. A contribution was made by the company to the local authority in respect of this assessment. Were it not for that contribution by the company and the forthright way it dealt with the planning application with the local authority, the financial position of that local authority would be very serious in respect of other services which have to be provided.

Local authority officials deal mainly with routine planning applications in respect of industrial, commercial and residential development but rarely have to deploy the necessary expertise to deal with a mining development application. I am pleased to note the Minister for Transport, Energy and Communications, Deputy Lowry, will pay particular attention to actual performance to date by the licensee in respect of the renewal or otherwise of a prospecting licence. There is considerable evidence that many licences issued over the years lay dormant and many licensees have not entered into any commitment to undertake a specific programme of exploration in the areas in question.

If the State is interested in developing a major mining industry it is necessary to increase the resources in respect of site investigation and monitoring of exploration activity by licensees to ensure licensees are proactive under the terms of those licences.

As a member of a local authority, I have been particularly interested in the development of a lead and zinc mine at Galmoy, County Kilkenny, by Arcon Mines Limited. It is the first Irish owned company that has set out to establish a mining industry and exploit mineral resources in the State for more than 20 years. I congratulate that company on its commitment to the project at Galmoy and to developing that mine as soon as possible. On many occasions throughout the planning process I asked questions which must be asked by a responsible member of a local authority in respect of this project. There is no doubt that the planning process has been utilised to the full by the concerned residents of the Galmoy areas to ensure that good environmental practice in mineral exploration is implemented. This is a statutory right of the people and one they are entitled to exercise on behalf of themselves and their community.

I sincerely hope the Minister will take cognisance of the fact that Arcon Mines Limited has effectively been utilised by the Department of Transport, Energy and Communications as the principal reason for reviewing all mineral development Acts and statutory provisions in recent times. I am sure their experiences during recent years in the planning process and in the courts will form the basis of many recommendations in the report of the national minerals policy review group. The manager of Kilkenny County Council, Mr. Donnelly, who is a member of that group, has first hand knowledge and experience of the difficulties in the planning process encountered and the lack of expertise available to local authorities. That expertise must be brought in from outside to deal effectively with important and complex applications.

Deputy Noel Treacy ensured it would be remiss of me if I did not mention the controversy that arose in October 1994 concerning certain documentation altered in the course of the planning process. I made an allegation at the time that alteration of documentation had taken place. Subsequently this was vindicated not only by the planning authorities but by the consultants examining the application on behalf of the Minister for Transport, Energy and Communications. I do not propose to go into the details surrounding that political controversy apart from saying that the action I took during my short term as Minister of State at the Department of Finance was in sharp contrast to that taken by the former Minister for Transport, Energy and Communications when it was patently clear that rules had been broken and the requirements of the Constitution not met.

Mr. N. Treacy

Not by him or his officials. They were unfounded and unfair allegations.

Mr. Hogan

It would be unwise of Deputy Treacy to reopen that debate——

Mr. N. Treacy

I have no difficulty in doing so either inside or outside the House.

Mr. Hogan

It would be unworthy of the Deputy to try to rewrite the history of that controversy. I supported the efforts by Deputy Treacy as Minister of State at the Department in bringing together all the mining interests under the umbrella of the National Minerals Policy Review Group. The recommendations to be put forward by that expert group will put the mining industry on the fast track in the future. I compliment Deputy Treacy on his efforts in this regard.

Mr. N. Treacy

Thank you very much, Deputy.

Mr. Hogan

I hope the Deputy will accept those comments in the context of my credibility on these issues in recent months.

During the duration of that controversy I supported the efforts made by Arcon Mines Limited to put in place, particularly through An Bord Pleanála, the necessary measures to ensure a safe mine for the workers and a safe environment for the people living in the Galmoy area. I compliment the management and staff of Arcon and, in particular, the chairman and chief executive, Brendan Gilmore, on their strenuous efforts to deal with the concerns of local people in a very fair, courteous and evenhanded way. I am entirely satisfied that good environmental practice in mineral exploration will be part and parcel of the mining development at Galmoy. It is noteworthy that in recent times Arcon appointed an environmental information officer from the local area to deal with queries about environmental protection during the construction and development of the mine.

The guidelines for good environmental practice in mineral exploration drawn up by the Department contain many general principles and there may be a need to implement a more strict regime to supplement all relevant Government laws and regulations on the protection of the environment. The review group may put forward recommendations in this regard. If the State cannot allay the concerns of local people about the supervision of the work, drilling, excavation, ground water and the testing of areas of scientific and historical interest, the mining industry will earn an undesirable reputation, as happened 20-30 years ago when it earned a bad reputation in local communities because of its failure to rehabilitate sites, inattention to detail and total disregard for the environment. I am glad the mining industry no longer has this reputation and that fly-by-night developers will not be able to undertake inappropriate mining developments which made headlines to raise the fears of local groups and communities and as a weapon to prevent mining development.

Given the increasing importance of environmental protection in the context of business development, I ask the Minister to consider the role of the Environmental Protection Agency in this area and to ensure that it has the expertise to see that the guidelines drawn up by his Department are implemented by mining companies. Will he give details of the agency charged with the responsibility of monitoring the planning conditions imposed by either the local authority or An Bord Pleanála? As local authorities do not have sufficient expertise to deal with the complexities of a mining application, does the Minister intend to give the Environmental Protection Agency a more pro-active role in fulfilling its monitoring obligations? I compliment the Minister on ensuring that the appropriate bonding arrangements are put in place for the development at Galmoy so that the company will not leave a hole in the ground without appropriate rehabilitation of the site when the mine has been exhausted.

The Bill does not deal only with lead and zinc mining. Ormond Brick Limited in Castlecomer in my constituency depends on the mining of shale for coal and fire clay which is used in the manufacture of bricks for the building industry. The brick manufactured by this company has been used in Grafton Street and other high profile areas throughout the country. That company has particular concerns about sections 12 and 20 of the Minerals Development Act, 1979, in terms of the compensation paid to people who have an interest in the development before the vesting date. I ask the Minister to ensure that the Bill covers any legal difficulties which might arise for companies like Ormond Brick Limited which provide much needed employment in their areas.

The prospects for the mining industry have never been better and it is beginning to recover worldwide as economies come out of the recession. Some years ago I visited Tara Mines in Navan, the fifth largest zinc-lead operation in the world. This mine, employing approximately 750 people, will probably continue in operation for another 20 years. I was very impressed by this operation which is a headline for environmentally friendly mining development on the outskirts of a major town. I compliment the management and staff of that operation for achieving the highest possible standards.

High grade zinc deposits have been found at Galmoy and Lisheen in County Tipperary. Work will shortly commence at the mine in Galmoy and planning queries have been sent to North Tipperary County Council in respect of the project at Lisheen. These projects have the potential to employ a significant number of people over the next 15-20 years. I believe there are other significant deposits to be found and it is only disbelief which has led to the low level of exploration. The Minister said there has been an increase in the number of prospecting licences from 460 a year and a half ago to 486 today, indicating a renewed interest in the mining industry.

I commend the Bill to the House. It will remove any doubts about the provisions of the Minerals Acts in the context of the licence granted to Arcon and the legality of the project at Galmoy. The review group is expected to report within the next month and some of its recommendations will probably require further legislation. We look forward to prosperous economic and social development in the areas in which mining development is carried out.

Mr. B. Fitzgerald

I am grateful for the opportunity to address the House on this important Bill which at least allows us to discuss the implications of mining. It will provide a solid legislative basis for our mining industry. Exploration requires considerable investment by corporate bodies who may never receive dividend from it. For that reason it must be encouraged. The Bill deals with areas not included in the mineral development Acts, 1940 to 1979, such as the renewal and successive renewals of mineral prospecting licences, application fees for State mining leases and licences and offences by corporate bodies, such as companies and other organisations. It is important that we address this issue so that the various bodies that may be affected by such developments know the exact position if they offend.

The Bill also increases the penalties for a variety of offences, for example, obstruction of authorised officers and unlawful mining provided for in the 1940 Act. There has not been a great deal of mining carried out here in recent years, hence the lack of pressure to introduce changes. However, there has been major developments in County Meath in the past 20 years — I hope the Galmoy proposal proceeds as planned.

Many mining licences were effected by various Ministers since 1940 and it is necessary to safeguard the renewal and successive renewals of those licences. The Bill gives statutory cover to the long-standing practice of requiring applicants for State mining licences to pay an appropriate fee to cover the Minister's costs in considering applications. I am sure most Members would agree that considerable expenditure is necessary for the professional expertise required to examine mining industry proposals. In the case of a major complex mine project, external consultancy services could cost up to £200,000. It is important that the State is protected from having to cover such costs. The Bill also provides an opportunity to strengthen the law to protect both State and privately owned minerals by increasing the original penalties for offences provided for in the 1940 Act and applying them to offences by corporate bodies. Under existing law only individuals are covered.

We have a major obligation to protect our environment while making full use of our natural assets. Mineral ores should be fully developed to create jobs, to contribute to gross domestic product and to take on a pivotal role in industrial growth. The Bill obliges the Minister to protect the environment and he must be satisfied that any proposed development would cause as little harm as possible to the environment. A full environmental impact statement will have to be prepared and submitted to the Department in this regard.

The safeguards already in place for mining licences include penalties if the site is not explored after a licence is granted. Since November 1994 the term applicable to prospecting licences includes a condition that licences are obliged to undertake an approved programme for work within each of the three two-year periods and to submit a work report for each period. This will ensure that licences are not used to freeze prospective sites. If developers are granted licences to explore hundreds or perhaps thousands of acres but fail to do so, others who may wish to explore such lands are prevented from doing so. What the Minister is attempting to do will at least ensure that developers are obliged to carry out the works within a specific period.

Our minerals sector has suffered because of Europe's recession but recent recovery provides an opportunity to increase employment. I hope the minerals policy review group publishes its report shortly because we may lose out if we have to wait too long. The terms of reference of the review group state that the group must identify the contribution of the mineral industry both directly and indirectly to job creation and the national economy generally. People will be surprised to note the contribution in certain areas. The group must evaluate the potential for downstream industrial development using Irish mine production and review the international competitiveness of mining in Ireland. Developments to date will prove that we are one of the most advanced countries in that regard, particularly in the context of Tara Mines Limited. The review group must also consider the extent, if any, to which the fiscal incentives for the mineral industry are necessary and desirable and, if so, the form they should take and the expected benefits therefrom. Investment that involves the creation of additional jobs should be considered with an open mind. We have not always reaped benefits from areas to which large amounts of funding were allocated but funding would be worthwhile in this labour intensive area.

The review group must also examine the potential and associated costs of a more aggressive approach to the promotion of Ireland as a favourable location for mineral exploration and the agency or agencies best suited to undertake such promotion. For that reason it is important the Minister strikes a fair balance between the protection of the environment and encouraging people to explore. While being conscious of environmental protection, we must not prohibit people from exploring by introducing legislation which would make it almost impossible. The group must also review the provisions of the Minerals Development Acts 1940 to 1979 with particular reference to the extent to which the financial terms of State mining facilities should be standardised and published and the State's role under the 1979 Act.

Protection of the environment must be top of the agenda in all of this. Because of the difficulties which have arisen in recent years, local authorities have had to employ experts in environmental protection. Our ground water, in particular, must be protected because that is the only source of drinking water available in rural Ireland. In many places it has been proved how easily ground water sources can be polluted, for example, by sumps and septic tanks. When the rock is cracked and a substance seeps into the ground water source it is practically impossible to stop it. For that reason the local authority must be the monitoring body with total responsibility for exploration. It is not right that the company doing the exploration should be the watchdog over itself. The local authority must be informed in advance about what a company intends to do and when. That can be done by notifying the planning officer and arranging meetings on site to ensure that what is being done is in the interests of everybody but also in the interests of protecting the environment. Nor can the Fisheries Board be ignored because of its interest in the tourism industry, if we allow our lakes and rivers to be affected it would do great damage to the industry.

The Office of Public Works has a major role to play because it identifies the archaeological sites throughout the country. In most areas one would not know that mining had taken place in a particular area. For that reason, therefore, the Office of Public Works must be informed in advance because there would not be much point in a company identifying a mine and then being prevented from mining at a later stage for archaeological or other reasons. There must be a co-ordinated approach to the question of exploration. Somebody must do the co-ordinating and the local authority, which has knowledge of an area, the expertise and staff, should play a central role in protecting the environment in the context of mining exploration.

Tara Mines is a great success and of importance to the economy of County Meath, particularly Navan. At present there are in excess of 770 people working at Tara Mines in a variety of well paid jobs, including professional and administrative people, craftspeople, miners and general officers. Few industries can provide direct employment for in excess of 770 people — the number was greater some years back. Also, there is potential for additional mining in that area when the question of Bula has been sorted out. An example has been set of how to run a business and remain a friendly and acceptable employer or industry in an area of fairly dense population. During the development of Tara Mines there was good cooperation between the local authority and the company, which continues to this day.

Regular formal meetings take place to monitor the environmental impact of all aspects of the mining company's activities — there are serious difficulties in regard to tailing pounds, etc. When Kilkenny County Council had difficulties in regard to the proposed Galmoy mine, they visited Tara Mines and consulted for many hours with the local authority there about the objections of concerned people in the Galmoy area. They went away after a number of days convinced that mining could be the friendly industry it is in Navan. The landscaping process initiated when the company was given permission to mine is now fully mature to the extent that it is not possible to know where exactly Tara Mines is located. It cannot be seen from the town, although it is on the edge of the town. Such an approach could be adopted in other areas. Therefore, mining should be encouraged, not discouraged, because of the legitimate concerns of environmentalists. The experience in Navan is an example which stands up. The terms, conditions and monitoring that apply there should apply also to new companies setting up. People who are prepared to invest money in the exploration of our resources should be encouraged, if they are fortunate and strike ore, but conditions should be laid down and the fears of those who are concerned should be dispelled.

I welcome the Bill. It will go some way towards dispelling the fears that exist. It will also encourage people to invest and explore. We have a long way to go to overcome our long term unemployment problem and there is no greater way than by encouraging industries like mining which is highly labour intensive, directly employs people, and the spin-off from which is practically immeasurable to the local economy. The reason I am looking forward to the presentation of the report of the review group is that it will encourage Ministers to invest in mining development to create well paid jobs.

Mr. Bradford

I am glad to have the opportunity to make a contribution to the debate on this legislation. I listened to the interesting contributions of the Minister and Minister of State, Deputy Doyle, who outlined the reason this legislation is required and, accordingly, I have no difficulty in supporting it. It should receive the full support of the House.

In the not too distant future we will have an opportunity to debate the report of the national minerals policy review group. Apart from one opportunity last October when the previous Minister, Deputy Cowen, and Deputy Hogan clashed on this issue, we have not had many opportunities in recent years to have a wide-ranging debate on the mining industry or mining policy. In this regard the highlights were the clashes in the 1970s between the then Minister for Industry and Commerce, Mr. Keating, and the Fianna Fáil spokesperson, Deputy O'Malley. Perhaps the issues of the day were ideological in the sense that they concerned the environmental aspects but only rarely have we been given an opportunity to discuss the potential of the industry to create many jobs. I hope this debate is the forerunner of a more wide-ranging debate and, if necessary, legislation on the industry and on the need to provide whatever resources are necessary to ensure that it creates a substantial number of jobs.

On the question of mining development, we have the classic case of environmental concerns versus job creation. On one side of the argument we have those who argue that, regardless of what regulations are put in place, the industry will always pose a threat to the environment and that there is a need to severely curtail its activities and on the other those who claim that the industry is under-developed and has the potential to create tens of thousands of jobs. As in most classic confrontations the answer lies somewhere in between. In allowing the industry to develop we must put legislation in place to ensure that it will not pose a threat to the environment. We should take the opportunity to discuss these issues when we debate the report of the national minerals policy review group in the fullness of time. Although the industry is currently well regulated it may be necessary to introduce further requirements as it develops.

The Minister said that this legislation is required as a matter of urgency to fill the gaps in the law which were not filled by the many Minerals Development Acts enacted in recent years. I am, therefore, confident that my colleagues will support it. The fact that it is being taken in advance of the presentation of the national minerals policy review group report which may be made available within the next month highlights the urgency attaching to it.

Section 5 provides for the payment of fees in respect of the work done by the Department in processing applications for licences. This work involves carrying out appropriate investigations to ensure that the Department reaches the correct conclusion. It is proper that the legislation should provide for the payment of fees to meet the cost involved. It is important to include this section to ensure there are no loopholes.

Currently there are 486 prospecting licences in force, of which 300 will fall due for renewal during 1995. The fee for a first licence is £600; £700 for a second; £1,200 for a third and £2,000 for a fourth or subsequent licence. There are significant sums which are paid into the coffers of the State. This highlights the need to ensure that this section is included in the Bill so that any sums legally due are paid.

Sections 2 to 4 provide for the renewal or successive renewal of prospecting licences issued under previous Minerals Development Acts and, consequently, are very important. Section 7 deals with offences by companies and other organisations.

In particular, we must deal with the possibility of unlawful mining and obstructing authorised officers in their duties in addition to protecting the royalities income due to the State as a result of mining activities throughout the county. Those sections are an important component of the legislation from the point of view of tightening up any rules or regulations which may be watertight. They will also ensure that loopholes are not created.

In the coming months we will discuss the outcome of the national minerals policy review group and legislation may be required at that stage. A more dynamic approach may have to be taken to the entire industry. It will be interesting to hear the outcome of the deliberations of the policy group on issues such as the contribution the industry makes but, more importantly, the contribution it can make to job creation and the economy. It will examine the potential for further industrial development to see how competitive our industry can be internationally and the incentives that should be put in place by the Government to ensure the industry can expand in a regulated but dynamic way.

The review will be awaited with interest by people in this House and outside it because, with approximately 300,000 people unemployed, and at a time when Members are discussing a report on long term unemployment, our mining industry has an excellent history of employment. Tara Mines, with 750 employees, is a good example. That type of industry, where possible, must be developed and expanded in a way which will satisfy everybody from an environmental and industrial point of view.

I look forward to a more comprehensive debate on this issue in the near future and I am confident that the Minister and the Minister of State, who are both very committed to the development of the industry, will bring forward whatever legislation is necessary in the not too distant future.

Mr. Kemmy

I welcome the Bill which is designed to be a technical, precautionary measure and, in that sense, it is most timely. When I was at school we read in our school books that Ireland had very few minerals and that we had to import almost everything from England, including coal. At that time, before Bord na Móna was established, we did not believe we had any fuel resources here. We did not believe there was any commercial use for turf, which we have in abundance, or that it could be used to assist out industrial development in a positive way.

When we set up this State 73 years ago we had a simple concept of ourselves alone, keeping out foreign goods and building up home industries behind tariff walls. At that time the world trade markets were already tied up by companies in large countries such as the United States, Japan, Germany and Britain. It was difficult for Ireland, therefore, to break into that market because, as we did not have an industrial tradition, we were not in a position to challenge them.

Despite the best efforts of Fianna Fáil, when it came to power in 1932, to give true expression to that simple philosophy of "sinn féin", after a period of seven years the number of people at work declined dramatically. During that period there was a dramatic change in employment in the home industries but, following that, our economy was stagnant. In 1957, 90,000 people left the country — I was one of them — because there was no movement in the economy. The Fianna Fáil Government performed a miracle at that time; it abandoned its philosophy of "sinn féin" and allowed in the multinationals, with their free trade, thereby holding on to power. That was remarkable for a party that had come to power as the party of small farmers and businessmen. The Anglo-Irish Free Trade Agreement, entry to the European Community and many other developments followed from that.

This legislation must be seen in that context. It is an attempt on our part to legislate for a sophisticated, international mining industry. Many multinational firms are involved in mining with a great deal of experience and understanding in dealing with Governments. In particular, they are experienced at exploiting the mineral wealth of countries and it is important, therefore, that we have proper legislation to deal with that. The Government, as custodians of our interests and our mineral wealth, must frame legislation to control the mining industry. This Bill strengthens the law in that respect and provides greater protection in a number of areas including our economy, through State royalties, and, above all, our environment. I also support the concept of increased penalties for unlawful mining.

The Bill deals with a variety of issues which I do not have time to deal with now but I will comment on them at some future time. They include drilling, excavations, water services, the pumping of ground water, geophysical surveys, restricted areas and other aspects of the mining industry. They are all important measures because we are dealing with a modern sophisticated business. The multinational companies involved in the industry are experienced and have track records throughout the world, some good, others not so good. We have all heard horror stories about countries exploited by mining companies. They pulled the wealth out of the soil and then left the country leaving the economy in a dreadful state. There are many examples of this in African countries which were left in a poorer state following the departure of these mining countries.

It is important to get the balance right in this legislation. We must lay down certain restrictions which will ensure that companies operating in this field are closely monitored on a variety of fronts, including safety. Deputy Bradford referred to the employment potential in the industry; that must be protected and expanded. There is not any reason that cannot be done. It is important to ensure, also, that we have the best safety regulations because we often read about accidents in mines resulting in many fatalities. We have had fatalities here also but, thankfully, they were few.

The Bill is an improvement on previous legislation because it will close loopholes and give greater protection in many areas. It is good mining practice to have an agreed code of conduct in place so that companies who come here to excavate know in advance what is expected of them. Also, the general public must become more aware through debate on this matter. Above all we must learn from the exploitation in other countries. We must ensure a balance between the protection of the interests of the people and our natural resources because once the resources are exhausted nothing is left but a hole in the ground. We have plenty of holes in the ground where the exploitation of our resources did not generate a sufficient return.

This Bill is a step forward and I hope we will have other legislation in this regard in the months ahead.

Mr. Finucane

This Bill establishes a code of conduct for mining and it regulates licences and fees. Penalties and fees applicable for years are not compatible with present day costs. For example a serious proposal for a mine could involve the Minister in consultancy expenses of anything up to £200,000. It is appropriate that the developer should pay those fees.

While attention has focused on mining activity I welcome the renewed interest in oil exploration off the Porcupine Bank. I remember the newspaper banner headlines in 1977 —"Oil strike off the Irish Coast" and I thought from the point of view of the national economy that all our birthdays had come together. Subsequent seismic exploration and the renewed interest in the North Sea shifted the focus from the Porcupine Bank. At that time many of the base exploration companies that operated in the Porcupine Bank operated from Foynes and the materials, staffing and the labour provided sustainable jobs in the area. I welcome the renewned interest of the big players such as Chevron, Santa Fé, Marathon and others who have applied for exploration licences in the Porcupine Bank and two of which are serious about drilling wells in the short term in the next two years. They have the proper seismic data and studies that are available and obviously are aware of the economics of exploration in the Porcupine Bank. It will benefit the economy if the exploration companies succeed.

Whereas we are increasing the application fees and penalties relating to mineral exploration we have decided to decrease the cost of exploration licences in order to encourage companies to carry out exploration in the Porcupine Bank.

I have a great interest in the exploitation of our mineral resources. I echo what Deputy Kemmy said and I remember reading in the history books that there were no mining activities here. We read about the lead quarries in Allihies in Cork but in the past 20 years our attitude to the environment has changed for the better. The buzzword at the conference in Berlin is "sustainable development" and concern for the environment has led to the mushrooming of a specific political party, the Greens.

Naturally younger people are very concerned about the environment and it requires a balancing act to get the mining activity right. Undoubtedly we made mistakes in the past which left dreadful scars but with the proper planning structure and environmental impact statements and the type of infrastructure that is available, it is possible to leave the landscape without an ugly blot and camouflage it by planting trees when mining ceases. A great deal of planning will go into that.

The successful port at Foynes, County Limerick handles 1.3 million tonnes a year. Companies such as Mogul and Macabar who mined in Tipperary exported out of Foynes port which benefited from the dues paid. The systems that operate in Foynes can dovetail with the requirements of the mining companies. I very much welcome the working of the Lisheen mine in County Tipperary and I hope it becomes sustainable. I imagine the ore could be transported by rail to Foynes and could then be exported. I hope we will end up exporting lead and zinc from Lisheen mines through Foynes Harbour in the next few years.

Recent media attention has focused on Galmoy, County Kilkenny. When people are concerned about mining or quarries, inevitably there are objections many of which are laudable. A corollary in local authorities is where three-quarters of the councillors agreed to a section 4 motion to overrule a planning permission. Many local authorities behave responsibly and the councillors on Limerick County Council for instance have a proud record of not having a policy to use section 4 motions in the interest of all councillors. In some counties three-quarters of the councillors combine almost on a quid pro quo basis to overrule what in many cases is a very sensible planning decision by the planning authorities in order to protect scenic areas from being spoiled by intrusive developments. Quite often the people who avail of section 4 motions become members of An Táisce and object to similar developments in their own areas. One sees that particularly in some of our scenic counties. Councillors have to be responsible and stand up to pressure. The planning authority tries to make sensible rational decisions in the interest of the area and have to be sincere in deciding whether to grant planning permission. When it comes to mining and quarrying, it does not matter whether for slate, gravel or whatever, there will inevitably be objections. While objections may be valid they often frighten off potential developers.

Areas where mining has been established such as Galmoy usually have suffered from emigration and a shortage of jobs. Bodies such as An Taisce and other environmental groups are fine but we must strike a balance between environmental protection, job creation and planning. There is a protection mechanism built into the planning process in that environmental assessments and impact studies must be carried out.

The Bill states that it is important to protect our watercourses and water. There was much drama this morning about water charges and the good logical decisions made about cutting off water supplies. Water is a mineral. We are aware of group water schemes in our counties and we know the risk of agricultural pollution ruining the water supply. That has happened and people could not use the water supply. It is important that mining developers are aware of what is required under the Bill. It is important to control and monitor mineral exploration but we must also make it attractive for the developer to proceed.

We were criticised this morning for not introducing legislation, yet the monopoly of wisdom on this Bill appears to reside on this side of the House since there were few contributions from Opposition Members. If the Opposition want to criticise us, that is fine but why does it not contribute to legislation when it is introduced? The Opposition should be constructive, not destructive. The episode this morning was a destructive saga.

I am a member of a local authority and make no apology for saying that I am in favour of water charges. There is no such thing as a free lunch. Local authorities are bedevilled by lack of funding. In 1977 political parties competed with each other in giving cheap sale offers. Fine Gael offered a percentage reduction in rates and Fianna Fáil offered to abolish them but no mechanism was put in place to ensure local authorities were properly funded. The sins of the past have led to our current problems. We debate the amount of funding required to maintain county roads and so on but the structural fabric of our roads is falling apart. Stupid political decisions were taken in the past. Fianna Fáil abolished rates and motorcycle road tax. It was returned to power with a huge majority but still managed to mess things up. Let us hope auction type politics are a thing of the past.

This legislation is positive, meaningful, constructive and a blueprint for the future. The Minister is progressive in his thinking. There are other delicate areas which I am sure he will deal with in a constructive, diplomatic and sensitive manner. It is time we stopped living in Disneyland and returned to reality. The sooner we, as politicians, cop ourselves on the better. We have a mature sophisticated electorate who can analyse what we are doing and see through our shallow activities. They are not fools and know they do not get a free lunch.

Statements were made in the House on long term unemployment and it is interesting to note that it is endemic in areas which are likely to attract mining activities. The Minister for the Marine is to meet a deputation from the Foynes Harbour Board and we will discuss exporting facilities and our experience of mining activities with him.

I welcome the Bill and hope that oil exploration activities lead to ports like Foynes having a successful role in supplying materials and equipment. I look forward to the day when we will have a good oil strike off the Porcupine Basin.

Kathleen Lynch

I do not know if I should be alarmed or encouraged by Deputy Finucane promoting Foynes and the Porcupine Basin. The only active oil and gas exploration is off the Cork coast. I hope that is where it will remain and that the Minister for the Marine will ensure that every available incentive is given to retaining jobs there rather than creating something that would take from the Cork area. Deputy Finucane and I may have a difference of opinion on location but I am sure we are agreed on what needs to be done.

When I was going to school I was told the only natural resource Ireland had was a fine collection of harbours for which we should be eternally grateful.

Debate adjourned.

Dáil Éireann díospóireacht - Thursday, 30 Mar 1995

Minerals Development Bill, 1995: Second Stage.

Mr. Treacy

Dáil Éireann díospóireacht -
Thursday, 30 Mar 1995