Joe McHugh (Donegal North East, Fine Gael) | Oireachtas source

I agree with the Senators' concerns about keeping licences under review. A five-year review interval would be too lenient. At present, prospecting licences are granted initially for a period of six years and may be renewed for a further six years, if warranted. Thereafter, the licence may be renewed for periods of one or two years, depending on the circumstances. During the six-year term of the licence, every licence is subject to formal review at two-year intervals and thereafter on renewal. This regime has been in place by administrative procedure since 1994 and has worked well. It is my intention that these arrangements will not change following enactment of the Bill. Section 29 of the Bill provides that the Minister will determine the time limits for which prospecting licences and retention licences may be granted subject to any maximum limit prescribed under section 30.I do not propose to grant a retention licence for as long as six years but the Bill allows flexibility, having regard to the particular circumstances. Retention licences will be formally reviewed at the same frequency as prospecting licences. Apart from formal reviews, the technical staff of the Department maintain contact with licensees throughout the licence term and keep apprised of developments. The proposed amendment is, therefore, unnecessary and I am not inclined to accept it.

I accept the Senator's point regarding prospecting licences. He is correct that there are between 550 and 600 such licences. He also asked how many prospecting licences are inactive and how many are active. All of the licences are active.

I reiterate that a prospecting licence is not a permit to mine. It is not always clear that a prospecting licence only allows the holder to explore for minerals. It is, therefore, a licence to spend money on exploration activities which, in itself, gives no return to the holder of the licence. Once prospecting has been completed, licence holders must go through the full rigours of the application process, which includes a planning process and the involvement of the Environmental Protection Agency.

I appreciate the Senator's concern regarding this matter. He should note that the legislation provides for a review to be held every two years to maintain vigilance.