Ceisteanna—Questions. Oral Answers. - Zinc Smelter.
- Zinc smelter study and timeline 4 speeches
The feasibility study began in April 1977 and reached the IDA on 1 February for review; the projected start of production by the end of 1981 remained unchanged.
Noel C. Browne, Ruairí Quinn, Ray Burke
- Tara Mines output for smelting 5 speeches
Browne asked what share of Tara Mines output would be smelted domestically; Burke supported establishing a smelter but did not have the projected proportion, and Browne said he would table a question.
Noel C. Browne, Ray Burke
- Report delay and production date 2 speeches
O’Leary asked whether departmental review could delay production; Burke said the 1981 date stood and the IDA expected to consider the project in April.
Michael O'Leary, Ray Burke
- Publication of the feasibility study 4 speeches
Desmond challenged the study’s confidentiality and lack of access for the Oireachtas. Burke cited commercially sensitive material and said publication would be reviewed after a final decision.
Barry Desmond, Ray Burke
- Russian proposal and trade arrangements 10 speeches
Kelly asked about a Russian smelter proposal and possible trade benefits; Burke said the proposal was being examined after an exchange arising from a December 1977 discussion with the Russian Ambassador. He could not say who initiated it or commit to involving Córas Tráchtála, but noted the Government’s aim of improving trade balances.
John M. Kelly, Ray Burke, Joseph Brennan
- Public ownership of smelter resources 2 speeches
Browne argued that governments’ failure to place the raw material in public ownership left Ireland without leverage in smelter negotiations; the Ceann Comhairle ruled it a separate question.
Noel C. Browne, Joseph Brennan
asked the Minister for Industry, Commerce and Energy when the feasibility study regarding the establishment of an Irish smelter commenced; and when a final decision on this matter is likely to be reached.
16.
Comment on this
asked the Minister for Industry, Commerce and Energy if he has received the report from the IDA and New Jersey Zinc on the establishment of a smelter; and, if so, when it is proposed to build a smelter in this country.
17.
Comment on this
asked the Minister for Industry, Commerce and Energy the reason for the long delay in the completion and publication of the feasibility study regarding the establishment of an Irish smelter; and when he anticipates that this report will become available.
Comment on this
With the permission of the Ceann Comhairle I propose to take Questions Nos. 15, 16 and 17 together.
The detailed feasibility study of the zinc smelter project commenced in April 1977. It was recently finalised by the New Jersey Zinc Company and the completed study was received by the IDA from the company on 1 February. Examination of the study by the IDA and subsequent consideration of the study and an IDA report thereon in my Department will then be necessary. The projected date for the commencement of production, not later than the end of 1981, remains unchanged.
I am informed that the study will contain certain data and information relating to marketing strategy and production costs, the publication of which would not be in the best interests of the smelter. However, when final decisions have been taken I will review the question of publication with the other principals in the project.
Comment on this
Could the Minister give us an indication as to what the objectives of his Department are in relation to the amount of output from the Tara Mines in particular to be smelted in the proposed smelter? Would the Minister agree that the export of this raw material—enormous wealth from zinc and lead—is a particularly irresponsible way of exporting it rather than retaining it until we can smelt it ourselves and, when we get it, smelt the whole produce of the mine?
Comment on this
That sounds like a different matter and, if the Deputy would like to put down a separate question on that aspect of it, I will arrange for it to be answered. On the question of the export of the ore, obviously the Government's attitude is that we should have a smelter and that is why we asked for this feasibility study to be carried out.
Comment on this
I accept the correction. When the smelter is in full operation, what proportion do the Government expect to smelt? I have used a figure of one-third. Is that continuing, or will we smelt the whole produce of the mine?
Comment on this
The Minister referred to a report being prepared at departmental level and indicated that it was not yet completed. Presumably the entire enterprise depends on the quality and the conclusion of that report. Will the putative production date for the smelter possibly be delayed if there is a delay in the production of the report?
Comment on this
No. The date of 1981 remains unchanged. The delay is not in the Department. The report became available to the IDA on 1 February. It is being treated as a matter or urgency. For the information of the Deputy I hope, subject to the views of the IDA board, that the project will be considered by the authority at their meeting in April, following which the IDA's views will be forwarded to the Department of Industry, Commerce and Energy.
Comment on this
Why does the Minister regard it as proper that members of the board of the IDA, some of whom have private interests, should be privy to a feasibility study and that a private company, New Jersey Zinc, should be privy to marketing strategies, and so on, and that report cannot be placed before the Houses of the Oireachtas in the Dáil Library? Does he agree that strategy of the Government contrasts very strangely with their decision on the publication of agreements relating to Bula? Secrecy for one and publication for the other?
Comment on this
Undoubtedly the Deputy is aware those are not the facts of the situation. New Jersey Zinc have indicated that much of the report, especially the sections dealing with marketing, financial and economic evaluation, and process selection should be treated as strictly confidential because the information on these aspects would be valuable to commercial competitors of the smelter.
Comment on this
Is the Minister aware that spokesmen for New Jersey Zinc have indicated publicly and in other areas certain internal strategies of that report? Why cannot his Department make available at this stage to the Oireachtas and to Opposition spokesmen the prospect of evaluating the different strategies in the report?
Comment on this
In my original reply I emphasised that, when the final decision has been taken, a review of the question of publication with the other principals in the project will be undertaken. It is not a closed door as yet. The whole question of publication will be reviewed in the light of the final decision.
Comment on this
I want to ask the Minister two questions and I will join them together. Is it true, as reported, that the Minister's Department have received a proposal from a Soviet source in regard to the building of this smelter? If it is true, or if the Minister envisages that a proposal of this kind might be officially received, would his Department consider trying any possible arrangement with a foreign source, whether the Soviets or anybody else, onto the kind of trade advantage, the kind of trade strings, which the Finns succeeded lately in tying onto a large contract with the British Aircraft Corporation to re-equip their air force?
Comment on this
The Russian proposal is a separate question but I have the information here and I can give it to the Deputy. There has been an exchange of letters between the Department and the USSR Embassy and a commercial consul here. The Minister has directed that the Russian proposals be examined and the IDA have been so informed. Obviously the Minister wishes to keep all possibilities in mind in considering the decision to be taken on the zinc smelter project and further possibilities of lead smelting also.
Comment on this
Could I ask the Minister two quick questions? Could he tell the House who initiated the correspondence he referred to? Was it the Soviets who initiated it. or was it we who wrote to them? That is one question. I have another.
Comment on this
It arose out of a discussion between the Minister and the Russian Ambassador in December 1977. The question arose as to a possible Russian interest in an Irish zinc smelter project.
Comment on this
Is the House to take it that the proposal came from the Russian side? Even in a conversation someone draws down a subject first.
Comment on this
Would the Minister consider bringing Córas Tráchtála into the picture even at this stage to see if our very large unfavourable trade balance with the Soviets could be put right as a side benefit of this contract?
Comment on this
I could not make a definite statement on that. Obviously it is Government policy if we have an unfavourable trade balance with any country to improve that situation. The Minister has expressed very strong views on this in the past.
Comment on this
This would be the biggest contract ever awarded in this country, rivalling even the nuclear station.
Comment on this
I want to ask the Minister is it not a fact that, because his Government and the Coalition Government took no steps to put this priceless raw material into public owner-ship, they cannot now make any worth-while arrangements with the Canadians, the Americans, the British or the Russians? They are all equally to blame.