asked the Minister for Industry, Commerce and Energy the current cost of setting up a chemical pulp mill to absorb excess output from Irish forests.
12.
Ceisteanna—Questions. Oral Answers. - Forest Output.
11.
asked the Minister for Industry, Commerce and Energy the plans, if any, to expand the timber processing sector to cater for the huge increase in output from Irish forests.
I propose, with the permission of the Ceann Comhairle, to take Questions Nos. 11 and 12 together.
On the general issue, I would refer the Deputy to my reply of 8 February 1979 to a similar question from him on this subject. I informed the Deputy on that occasion that the Industrial Development Authority had agreed a development policy and grant criteria for the sawmilling sector of the timber processing industry. The authority have to date approved grant assistance for projects with an investment in fixed assets amounting to approximately £2.9 million. These projects are expected to generate 257 jobs.
The section of the study of the timber processing industry dealing with pulpwood products has since been completed and is being considered with a view to identifying how the maximum return can be obtained from our timber resources.
I am informed by the Industrial Development Authority that the cost of setting up a chemical pulp mill would depend on the capacity of the mill and the availability of adequate supplies of pulpwood. Information available to the IDA suggests that the cost of setting up a modern commercially viable chemical pulp plant would be about £150 million. The pulpwood requirements of such a plant would be much greater than the present supply of pulpwood in this country.
Is the Minister aware that the people engaged in the forestry industry including foresters, are very concerned at the lack of outlets for the thinnings of forests? They tell me that timber is literally rotting in the majority of those forests due to a lack of outlets. The sawmilling sector, which has been referred to by the Minister, is not capable of absorbing this surplus.
The Deputy is giving information not asking a question.
What real, concrete solutions has the Minister for this problem of over-supply?
One of the most useful things which could be done would be to revitalise the chipboard industry, which is one of the major users of the type of timber, which the Deputy refers to. After many long months of negotiation at my instance the IDA finally agreed with a major Irish company, which are of considerable financial and management standing, to take over the two chipboard factories in this country, one of which was closed down and the other which had encountered some difficulties. When the Government had approved of the package concerned and when all the details had been finalised, the company concerned found themselves confronted by a picket of a relatively small number of people in the Munster Chipboard factory in Waterford. Those picketers were in no way, nor did they claim to be, in dispute with the company which were taking over this and the other factory. Notwithstanding the fact that there is no dispute and that their demands were quite unreasonable, the picket has persisted with the result that the company concerned have had no option but to withdraw from their proposed takeover. This has placed several hundred jobs in immediate jeopardy. Jobs will be permanently lost, which could otherwise be created now or maintained. I deplore very strongly the attitude of the handful of people concerned and their two unions, who appear to be supporting them in this. I ask those concerned and their two unions whether or not they are interested in the creation and maintenance of employment in this country and in the utilisation of our surplus thinnings, to which the Deputy has referred. It seems to me that their actions are only compatible with the actions of people who are not interested in the maintenance and creation of employment.
I fully support the Minister's please to the people concerned. Has he any practical alternatives for getting rid of this surplus? If he is not going to set up a chemical pulp mill he obviously must expand the chipboard industry on a major scale. Have the Minister's Department any definite plans?
If the chipboard industry could be got going again on the great basis on which this Irish company are prepared to get it going again it would take up a great deal of those surplus thinnings. That would be an excellent start. The IDA are actively studying certain other areas in which that type of timber might be used. The difficulty which they face at present is that the market in Europe generally for the sort of products that are made from this type of timber is extremely bad: the prices are very low, it is subject to dumping, and it is subject to subsidies from certain Governments. It is difficult at the moment to operate this type of industry viably. That is why it is doubly tragic that an Irish company of considerable standing who are prepared to take on this difficult task should meet with such opposition from two small, English-based unions.