(a) Urgent, and in some cases strategic, national considerations will demand the acceptance of a higher degree of risk by the Commission in endeavouring to extend the apparently limited life of mineral resources such as tin and tungsten ores, fluorspar and barytes by higher expenditure on exploration than the size of the existing industries working these minerals apparently justifies.
S
(b) The number of exploratory schemes which can be undertaken at the same time will necessarily be limited under present conditions by the shortage of technical staff, manpower, and materials. (c) Expenditure during the first few years must be regarded in large measure as an insurance for the future. In many cases the longer exploration is deferred the more costly it will be to undertake.
4
(d) A great deal of preliminary work will be required; including ex- ploration, before the real future economic significance of some of our mineral industries can be assessed, and thus some measurement obtained of the permanent size and scope of the Commission. (e) Provision may have to be made also for loans to mining under-
takings to safeguard mineral resources for the future.
van the mday vise od genun. Dynum **
452. The Commission must not necessarily be expected to become entirely self-supporting out of revenue it receives from royalties. The financing of the work it will be required to do could not have been borne by mineral owners out of royalty receipts and the rates of the latter must obviously not be increased. The Commission will have failed in its task of promoting the national interest in mineral development, therefore, if the scope of work justified on technical grounds is limited by financial considerations of this kind.
=
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453. We recommend, therefore, that as soon as the Commission is con- stituted the Treasury should make an advance to it of a sum in accord with general economic considerations, and within the national_investment programme. The Commission should prepare an Annual Report and Accounts to be submitted to the Minister of Fuel and Power who should lay them before both Houses of Parliament. The financial arrangements of the Commission should be reviewed before the first five years of its existence have elapsed.
62
CHAPTER XLI
SUMMARY OF RECOMMENDATIONS
MAIN RECOMMENDATIONS
Mineral Development Commission
1. The Minister of Fuel and Power should establish a new permanent organisation, largely technical in character, charged with specific functions and duties, and with relationships to other Departments in regard to mineral
đo development as set out in Chapter XI (para. 433).
101
.
Nationalisation of Mineral Rights r
Het doide bolikm
2. The "fee simple " in those minerals dealt with in this Report should be acqulag by the ostat6,2and, together with the gedevelopment value "wat present vested in the Central Land Board, should be transferred to the new. Commission (paras. 371-75, 432).
to soligson ad: Dr, nab
Government administrative arrangements
POTXO
3. Production responsibility for MDC minerals at present with other Depart- ments should be transferred to the Minister of Fuel and Power (para. 442).
OTHER RECOMMENDATIONS Voup vår (9)
GU.
Mining Taxation
4. The principle conceded by the Income Tax Act, 1945, whereby certain expenditure of a capital nature, e.g., that on exploration, development, shaft sinking, is now allowed for tax purposes should be extended so that :-
(i) All expenditure except (a) any expenditure on the acquisition of the site of the source, or of the site of any works, or of rights in or over the site; and (b) any expenditure on the acquisition of, or of rights in or over mineral deposits, where not otherwise provided for should be allowed as charges against profits having regard to its effective life or the life of the mine, whichever is the shorter and
of
(ii) Losses incurred during the early years of operation of a mining concern, computed in accordance with existing legislation, should be charged against the first profits available, with no limit on the period during which they can be carried forward (para. 343). : 5. Whether or not mineral rights are nationalised, development charges or royalties should be imposed as annual payments, not as capital sums (para. 346)...
sbaur og feslangat no bonuzgj
The Carn Brea district, Cornwall
6. To safeguard the future development of substantial tin ore resources still believed to exist in the area, the Minister of Supply, being at present responsible for tin supplies, should replace his existing contract with South Crofty Ltd. by a new contract which would:-D VE
(a) provide for the purchase of the output of tin concentrates from the mine at a guaranteed minimum price for a period of not less than three and not more than five years,
(b) enable special provision to be made for new centrifugal pumps, if necessary by a loan from public funds or by a hire-purchase agreement,
(c) empower the Minister to appoint one or more representatives on the Board of South Crofty Ltd. and enable him to prescribe the annual expenditure on underground development and maximum annual payment of dividends by the Company, so long as any loan from public funds is outstanding to the Company (para. 249).
The Hemerdon wolfram ore-body
7. Further exploration should be undertaken to ascertain the full extent and value of this ore-body before the plant erected by the Minister of Supply in 1942-43 is broken up or disposed of (para. 260). «vem
North Yorkshire potash
8. Until the Mineral Development Commission (1 above) is set up, the national interest in this project should be secured by the formation of a
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