HL Deb 19 January 1943 vol 125 cc665-7
LORD FARINGDON

My Lords, I beg to ask the question which stands in my name.

[The question was as follows:

To ask His Majesty's Government what principles govern the grant of concessions in minerals to Europeans and others in Africa, the West Indies and other parts of the Colonial Empire, and whether any principles regarding taxation, royalties, welfare funds and social responsibilities of new enterprises are laid down.]

THE PARLIAMENTARY UNDER-SECRETARY OF STATE FOR THE COLONIES (THE DUKE OF DEVONSHIRE)

My Lords, the grant of mining concessions in the Colonies is regulated by the mining ordinances of those Colonies. In the case of oil-mining a model ordinance was prepared in this country by a Committee of experts some years ago, and all Colonial oil-mining ordinances follow that model 'with such small modifications as are required by the local circumstances. In the case of other minerals the variations between the various ordinances are necessarily wider, but the underlying principles are the same throughout. These are broadly that any person or company who is competent to perform the operations contemplated is eligible to obtain a concession. There are in most cases provisions regulating appropriately the various stages in such an undertaking, that is to say exploration, prospecting and mining. The miner must perform these operations efficiently and must not damage other people's property, unless this is unavoidable, in which case fair compensation must be paid. If he wishes to enter private property he must make proper arrangements with the owners, and he must make good the land, so far as this is possible, before he abandons it. On the other hand, so long as he conducts his operations properly he is given security of tenure for an adequate period.

So far as taxation and royalties are concerned, the general principle is that the Government, when it grants a concession, makes the best arrangements that it can for securing a fair share of the proceeds of the undertaking for the public revenues. In some cases the rate of taxation is laid down by the mining ordinance; in others, where there is no appropriate provision in the ordinance, it is made the subject of a special agreement between the Government and the undertaking. In some cases the taxation takes the form of a royalty, in others that of an export duty or a share of the profits. In nearly all cases a rent is charged for the land leased for mining operations; where the rent is a heavy one, the amounts so paid are sometimes set off against the royalties or export duty otherwise payable. Apart from this special taxation, mining undertakings are subject to the ordinary general taxation of the Colony, import duties, Income Tax, etc., unless a special bargain has been made.

It is unusual for special arrangements for welfare funds to be made, since it is considered that the Government's receipts from mining undertakings should be freely at the disposal of the Government for the benefit of the community at large; but the Government is in a position to ensure that proper wages are paid to the work-people. So far as social responsibilities are concerned, the general labour legislation of the Colony applies to such undertakings, and in some cases there are special provisions on the subject of mining. There is a Labour Department in all Colonies where there are any substantial mining operations, and it is the duty of the local Governments, through these Departments, to see that the proper labour conditions are Maintained in mining as well as in all other industrial undertakings.