I compliment the Minister on bringing this order before the House and I wish him well in his new ministry. I know the Minister realises the importance and urgency of this order. It is a move to preserve a lot of jobs in Scarriff chipboard factory along with jobs in the harvesting, extraction, haulage and transportation of timber. The timber processing industry has faced tough times all over the world. Unfortunately the past few years have seen the loss of the Athy wallboard factory, the Munster chipboard factory, and portion of the Clondalkin Mills ceasing operations. These were all very heavy users of timber thinnings and waste. The loss of Scarriff would have seen the demise of the last timber processing mill here.
The situation there was very worrying not just because of the loss of jobs but because it would also have meant the importation of our chipboard needs and the loss of the expertise we have in this industry. Also we would have had no outlet for forestry thinnings. For some years before this move was taken, there was a scheme of subsidisation of timber thinnings to Scarriff and Clondalkin. Despite this move Scarriff had difficulties and were about to close. At that stage the IDA, Fóir Teoranta and other State bodies had washed their hands of the project and could not see much hope for its future. The Government decided to assist Scarriff, and local business people and ordinary people who were interested and were prepared to raise funds revamped the mill. With substantial State aid and the continuation of the timber subsidisation, Scarriff was saved. The new board of directors and the division and percentage we have come up with secured the investment of the private sector but particularly the State investment in this mill, which is considerable.
I was responsible for appointing two of the directors and Deputy O'Malley appointed two others. I now refute the statement which was made previously that this move to save Scarriff involved party hacks. I challenge anyone including the present Minister to provide two more qualified people than the two directors I appointed. I did not ask them about their political affiliations but I know and admire their qualities of honesty, trustworthiness, experience and commonsense. On 26 March when this was first introduced in the Forestry Estimate, Deputy E. Collins objected strenuously and referred to party hacks and political patronage. When a move was made to save Scarriff Deputy E. Collins displayed a truculence that would be very much in keeping with the dog in the manger and referred to the Munster Chipboard factory. Others referred to the close of the Athy wallboard factory. I lay the blame for those closures particularly on our Government and I note the remarks by mouthpieces of certain unions and of certain lunatic fringe political parties who were prone to refer to this matter. In relation to Waterford the unions have the greatest sin to answer for with regard to the closure of the Munster Chipboard factory having regard to the sit-in. Actions whether they were official or unofficial frightened away prospective buyers and they effectively closed the gate and locked the door on Waterford. In relation to the wallboard factory in Athy the management must take a certain amount of blame, as must the dumping of Swedish imports. The attitude of the management, the workers and the unions must be looked into. For years there were 50 too many working in that factory and they virtually got appearance money. The unions must be culpable on that account. Representatives of the Irish Transport and General Workers Union who would accuse politicians of playing on the emotions of people would be as well to cast the mote out of their own eye before they deal with anyone else. I refer particularly to a recent remark made by them.
When I say the unions I do not mean the ordinary working members, who have very little to say, I am talking about the Dublin-based people who pull the puppet strings in the background, the faceless people who dodge the blame but who are all smiles when it comes to taking the credit. They play with the lives of people also. But in this case the jobs and the future of Scarriff were saved. It is well to remark that for the period the State took on the responsibility of the mill — before the new company took office — it did remarkably well and paid its way. I am confident that in the future it will pay its way and stand on its own feet. The decision to improve the plant, to improve the product, giving it uniform quality in order to provide for our future needs at home, was the right one.
Side by side with that move in Scarriff there was also the introduction into this country of a firm from Oregon, the Medford Corporation, manufacturing medium-density fibre board. When the future of Scarriff was in doubt there was a degree of concern that Medford in Clonmel would harm Scarriff. I should say that they are not in the least incompatible. Scarriff make a chipboard; Medford make a medium-density fibre board which will be used in furniture. They will both look for different markets. The Medford product has already got a toehold for 20 per cent of its output even in Europe. Its output in America has now obtained 20 per cent of the trade in the EEC. This decision will utilise the supply of timber thinnings we will have for the next ten years — there will be enough for all — and the agreement with the Forestry and Wildlife Service to provide a subsidised supply will run for three years only. That is necessary and will give both industries an opportunity to find their feet. After that, hopefully, the market will decide the price. At that stage there could perhaps be an energy value to the thinnings that will be used that could help to decide the market price of the product.
Because of the difficulties of the timber processing industry, in which we had 300,000 tons of thinnings to spare every year with no market for them, as Minister at that time, I did a deal to the effect that we would export timber to Sweden for a three year period because nobody at home wanted it. The person concerned did manage to export 24,000 tons. I should say we have nothing whatsoever to hide in regard to this. The timber was there, nobody wanted it. It would be comparable to the sales of our calves at one time to Italy and to Europe generally, when nobody wanted them here at home. I am sure the Leas-Cheann Comhairle will remember the time when calves were available for £1, or could not even be given away. At that stage I am sure people would have been glad to export them. This decision of the Government also had the effect of keeping our harvesting people in employment, training more people, getting them ready for the large volume of harvesting and extraction and on road-making and machinery usage that will become necessary in two years time when the project gets under way.
I consider this decision in regard to the future of our forestry as a fine example of a Government that were not single-minded, who had no hang-up about socialism or capitalism but who were prepared to act to solve the problems of the day. I would see the State involvement in Scarriff and the private enterprise in Clonmel providing the complete answer to our needs through the utilisation of our forest products, as having been a very good decision and one that will ensure that our sawmills are geared to maximum capacity in providing the 1,000 new jobs for which the IDA recently claimed credit. I would view it also as forming part of a programme for which the Department of Fisheries and Forestry can claim some of the credit.
I compliment the Minister and I wish Scarriff well. I am sure it will thrive and prosper, serving our needs in the remaining decades of this century and beyond. When the decision was taken earlier this year it was considered a brave one. I consider it still to have been the proper decision and that it will so prove in the future.
