Tara Mines royalty payments
Mac Giolla sought figures for royalties paid and owed by Tara Mines and asked when the State would collect them. Collins said the royalty liability could not be determined until complex disputes over taxable profits were resolved by the Revenue Commissioners; a share acquisition would not remove the company’s liability.
asked the Minister for Energy the total royalty payments made to the State by Tara Mines Ltd. in respect of its mining operations at Navan from the commencement of the operation of the mine to the latest date for which figures are available; the estimated total royalties owed by Tara to the State; the measures the Government are taking to have outstanding royalties collected; and if he will make a statement on the matter.
Comment on this
As I have informed the Deputy in reply to previous questions, the profits of Tara Mines Ltd. for corporation profits tax purposes, which is the basis for calculation of the company's royalty liability, have yet to be agreed with the Revenue Commissioners. Consequently no payment of royalty has been demanded from the company. The matters at issue involve a number of complex points and, whilst progress is being made towards their resolution, it is not possible to say precisely when they will be resolved.
Pending resolution of the matters at issue it is not possible to estimate the company's royalty liability with any accuracy.
Comment on this
I have asked this question every six months since June 1984 and I have got the same answer each time. The Minister has said this is a very complex matter being negotiated with the Revenue Commissioners for over 18 months now. Could the Minister say what stage negotiations have reached? I understand that Tara Mines are making considerable profits and the State have not got a penny in royalties——
Comment on this
Is the Minister correct in his statement issued the last time I asked this question, that under the terms of the lease the State should get 66 per cent? When does the Minister expect the State to get something?
Comment on this
The question related specifically to royalty payments and I must confine myself to my reply in regard to that. This is really a question of decisions by the Revenue Commissioners and not my Department. In previous replies I told Deputy Mac Giolla quite clearly that the questions are complex. From information I have received I understand they have wide implications. I am not in a position to give a finite opinion on this matter. Complex negotiations are going on between the company who have raised complex legal issues and the Revenue Commissioners. I hope these matters will be resolved sooner rather than later but procedures must be gone through before a determination is made. For the information of the House, the State is receiving considerable revenues from employment at Tara Mines in the form of PAYE, PRSI, VAT and rates on industrial buildings, so revenues accrue to the State from this important economic activity. In relation to the specific question asked by the Deputy, it is a matter of procedure which is set down in the tax laws to be settled in the normal course which is outside of my control.
Comment on this
Will the Minister confirm that negotiations are proceeding for the sale of Tara Mines to this Finnish state mining company? If it is true, does the Minister not consider it of great urgency to ensure that Tara's royalties have been paid to the State before such an agreement is made? Can the Minister confirm that this will be done and that all payments will be made before such a deal is completed?
Comment on this
I am aware of moves in respect of the acquisition of shares in relation to the ownership of Tara Mines Limited. That would not affect the liability of Tara Mines Limited in relation to the payments of royalties to the State when this falls to be determined by the Revenue Commissioners.