Silvermines mine subsidy and closure
Molony pressed for a subsidy and action to stop the mine’s rundown before closure. Reynolds said he had not received the specific request, would have his Department and the IDA contact the company, and would decide after reviewing the situation and meeting a local deputation.
asked the Minister for Industry and Energy whether he has now given consideration to the request that the Government provide a subsidy towards the energy costs of the Mogul of Ireland mining operation at Silvermines, Nenagh, County Tipperary with a view to keeping the mines open for a period after the planned closing date of the end of July 1982 and thereby enable alternative employment to be found for the 500-strong workforce; if so, his decision on the request; and if he will make a statement on the matter.
Comment on this
The operational costs and other factors which gave rise to the decision by Mogul of Ireland Ltd. to close down the mine at Silvermines, County Tipperary, not later than at the end of July 1982, have been under consideration in my Department for some time. I expect to be in a position very shortly to indicate the conclusions reached in the matter.
I would emphasise that I have not yet fully completed my assessment of the situation and I would not wish any assumption to be made, at this stage, as to the conclusion which will be reached.
Comment on this
Is the Minister aware that the company concerned have taken certain actions in relation to the mines which indicate clearly the intention to close down? Is the Minister aware also that some of these actions may have made recovery of further ore from the ground impossible? In these circumstances has the Minister taken any steps to ensure that the activities in question are stopped at least until he has had an opportunity to study in detail the consultants' report which is now available to him? Can the Minister tell us also whether he has received from Mogul a request for subsidisation? I am aware that he has received representations from public representatives in the area and from a special committee set up by various interested groups urging him to keep the mine open for another 12 to 18 months.
Comment on this
I have not received any specific request from the company in relation to the aspect to which the Deputy refers but the Deputy must be aware of the very limited amount of what is poor quality ore available at this mine. Therefore, it was not big news to any of us to hear that the situation of which the Deputy speaks would arise. It has been known for three or four years that the end was in sight.
Comment on this
The Minister has not answered my question about a request from the company for subsidisation. Is the Minister aware that the company have taken steps that will lead inevitably to the closure of the mines and, if so, has he taken any action to stop these activities?
Comment on this
In view of what the Deputy has said I will have my Department and the IDA contact the company immediately.
Comment on this
Is the Minister aware that redundancy notices are to be issued next week or the week after in this case and would he agree that this is a clear indication of the impending closure of the mines? Is he aware also of two previous applications that were made by this company for subvention, one in 1979 and another in 1981? I have checked these facts with the Mogul management.
Comment on this
The Deputy may have misunderstood what I said. I am aware of the application that was made in 1979 and also of the later one but I am not aware of the matter raised by Deputy Molony. However, as I have said, I will have my Department contact the mining people immediately. I might add, though, that a conclusion will not be reached on this matter until I have had an opportunity of meeting a deputation from the area within the next week or two, a deputation that will include representatives of the workers.
Comment on this
Because of what Deputy Molony has said and in view of the urgency of the situation, I should like to confirm what the previous speaker said, that there is a running down situation there. Unless the Minister is prepared to go in immediately the consequences will be so bad that he will not be able to do anything for them.
Comment on this
The Deputy is aware, like other Members, that the reason for the running down is that there is a limited amount of ore left in that mine. That is not news to him or to anybody else.
Comment on this
Surely the Minister should take immediate steps to stop this running down situation?
Comment on this
It has been know for some time. Other people were in Government for a period and knew what position would arise. There was no subvention left either.