§ 8.55 p.m.
§ Lord ELTONMy Lords, I beg to move that the Mineral Exploration 1271 (Northern Ireland) Order 1979, a draft of which was laid before this House on 6th November be approved.
The order before the House makes provision for the payment of grants to persons carrying out mineral exploration activities in Northern Ireland. Northern Ireland does not have an extensive mineral industry and in fact only one mine, for salt—no one raised that in a penal context in the earlier debate—is operating commercially at present. However, we are hopeful that further exploration of the area will in time lead to the identification of commercially viable deposits. Most mineral rights in the Province have been vested since 1969 in the Department of Commerce which in that period has issued 53 prospecting licences. Seven licences covering an area of 725 square miles are currently held by prospecting companies and a further four applications are being considered. This I think attests to the interest being shown in the Province by mining companies. The range of minerals being sought is considerable. Apart from salt, which seems to exist in abundance, the companies are searching mainly for base metals but also for coal, lignite and uranium.
The effect of the order will be to allow the Department of Commerce to pay grants to companies and individuals involved in these activities. This will bring Northern Ireland fully into line with Great Britain as the order will largely reproduce those provisions of the Mineral Exploration and Investment Grants Act 1972 which relate to minerals. The fact that the Act of 1972 did not apply to Northern Ireland did not give rise to concern until March 1977. Prior to that date persons undertaking prospecting operations in Northern Ireland could claim assistance under the Capital Grants Scheme operating in the Province. However, when this scheme was revised to exclude non-manufacturing categories prospecting activities become ineligible for grant. As a result companies operating in Great Britain had an advantage over those carrying out similar functions in Northern Ireland. This order will correct that anomaly.
The order itself is short and contains only three articles. Articles 1 and 2 deal largely with procedural matters and the 1272 meat of the order is in Article 3. Article 3(1) gives the department general authority to pay grant for mineral prospecting operations. It is intended that the Department of Commerce will draw up detailed provisions at a later date and that the grant scheme will be similar to the one operated under the Great Britain Act of 1972. Article 3(3) fixes the upper limit of grant at 35 per cent. and allows the department to impose conditions on persons receiving grant. The one condition specifically referred to will allow the department to "claw back" grants from operators whose prospecting activities enable them to identify viable ore deposits. This provision is intended however to apply only where profitable extraction results.
Article 3(2) is intended to safeguard environmental interest by requiring that no one can claim grant without first satisfying the Department of Commerce that planning permission has been obtained or is unnecessary. Most prospectors will have to obtain a licence from the department. This is an additional safeguard since the department will normally consult a wide range of interests, including planning authorities and district councils, before granting a licence.
Article 3(4) sets a ceiling on the total amount of grant payable under the order but also makes provision for this to be increased if required.
§ Lord PEARTCome on!
§ Lord ELTONThe noble Lord says "Come on!". I have one paragraph to go. It might not be of great interest to the noble Lord, but on the other hand we have the readership to he considered of the people affected by this order. Article 3(5) provides that a report will be made annually as part of a statement already prepared by the department on its mineral development activities. This report will include information such as the number of companies assisted and the amount of grant paid in each year.
Perhaps I should comment on the definition of minerals in Article 2. Only minerals as defined under the Mineral Development Act (Northern Ireland) 1969 for the purposes of prospecting licences, will be eligible. I will not read them out, 1273 but as in Great Britain natural gas and oil are not included, as these are the subject of separate legislation. My Lords, I beg to move.
§ Moved, That the draft order laid before the House on 6th November, be approved. —(Lord Elton.)
§ On Question, Motion agreed to.