Deputy Eileen Lemass has been given permission to raise on the Adjournment the question of Clondalkin Paper Mills. She has 20 minutes and the Minister has ten minutes to reply.
Adjournment Debate. - Clondalkin Paper Mills.
Deputy Seán Walsh will share the time with me. I will take approximately ten minutes and I will give ten minutes of my time to Deputy Walsh. I would like to thank the Chair most sincerely for allowing me to raise this matter on the Adjournment. I realise that it is very late in the night, that several other Deputies have been endeavouring to raise matters on the Adjournment and that it has been difficult for you to decide which matters are of importance and which should get priority for raising on the Adjournment.
I am raising this matter on the Adjournment because I consider it to be extremely important at this time. We all know that Clondalkin Paper Mills are closed since 22 January 1982 and that approximately 350 workers are unemployed in that area. They are skilled workers who have from five to 40 years service. They have pursued their trade in the paper making industry and they are very anxious to know what their future is. Those people have families and have now been unemployed for a long time. I am endeavouring tonight to find out what will happen to the Clondalkin Paper Mills. I am anxious that the Minister of State gives us a firm reply. I do not want to be told that the Government are trying to sell the Clondalkin Paper Mills to Canadians, Germans or anybody else. That was tried without success in March 1982. At that time the then Minister. Deputy Albert Reynolds, gave a commitment to open the Clondalkin Paper Mills on 9 June but that fell through.
At that stage they were trying to sell the paper mills at Clondalkin to Canadians or Germans without success so I do not want to be told at this stage that that is still going on. That situation went right on through the summer of 1982 and the Clondalkin Paper Mills were not opened. In November 1982 before the election the deal was almost brought to a conclusion and the then Minister, Deputy Albert Reynolds, gave a firm commitment that the mills would be opened. After the election, when the Coalition Government came into power, trade union members and the workers from Clondalkin Paper Mills met the Tánaiste, who stated that he would do everything he could to open the mills. In February 1983 a meeting with the Irish Congress of Trade Unions and members of the action committee of Clondalkin Paper Mills took place just before this year's budget. My information is that a deal was done. I am sorry if that is the wrong way to phrase it but I have been informed that the Coalition Government were very anxious to get their budget passed. The union said they would withdraw their support from the Labour Party if the Coalition Government did not agree to re-open Clondalkin Paper Mills. At 4.30 a.m. in the morning it was agreed to buy clondalkin Paper Mills. I would like the Minister of State to say if this is the case because my information is that this happened.
A sum of £1.75 million was paid to purchase Clondalkin Paper Mills because the Coalition Government were of the opinion that if they did not do this the Congress of Trade Unions would withdraw support from the Labour Party regarding the details of this year's budget and they would not agree to the implementation of the budget. We know that the Minister in the Fianna Fáil Government gave a firm commitment on 16 November 1982 to re-open and refurbish Clondalkin Paper Mills and the incoming Coalition Government gave a firm undertaking that they would honour the commitment given by the previous Minister. I am trying to find out what the present situation is. I know there is a care, maintenance and refurbishment agreement or plan to be submitted to the Department. That means it is just a plan for care, maintenance and refurbishment, not to do the refurbishment. The Government have not given any undertaking to carry out refurbishment of the mill.
There is a sort of statement at the moment. The Government will not say that they will definitely close the mill, although at a meeting about two weeks ago when the Minister for Industry and Energy, Deputy John Bruton, met members of the action groups and members of the trade union, he stated emphatically that the Government had no intention of opening the mills as a State or semi-State concern. He said he would try to sell it to Canadians or anybody else who might be interested in purchasing it. I want the Minister of State to tell us if that is true. If it is not true and the Government have no intention of opening the mill as a State or semi-State body what do they intend to do with the mill? They bought the mill for £1.75 millions of State money. Will they let the mill fall apart? Will they do anything with it? Will they leave it until it rots away?
Every piece of paper we use in this House now is probably imported. We need an Irish paper mills to make the paper we use every day. I am trying to discover from the Government if they will allow this industry to disintegrate? Will we in the future use paper in this House, on which our Bills are printed, which has been imported? It would be a disaster if we allowed this paper industry to dissipate.
There is another thing I do not know a lot about but I have heard people speaking about it on more than one occasion. I believe the trees in our forests, which were planted 50 years ago, are about ready to be harvested and that trees could be used in the paper pulp industry. Wood is being sold at £1 a ton or some such ridiculous price out of a port in the south while we could be using it here. Is all that industry to fall by the wayside? I want a definite answer tonight from the Minister of State. I ask him please to tell the workers at Clondalkin Paper Mills whether they will get their jobs back and whether the mills will reopen. If not what exactly is to happen to Clondalkin Paper Mills?
I would like to associate myself with the words of Deputy Lemass in thanking you, a Cheann Comhairle, for allowing this matter to be raised and I thank the Minister of State for coming here tonight. This has been a long day, but this is a very important matter for areas such as Clondalkin and Tallaght, two new towns in developing County Dublin.
We heard in a reply to a parliamentary question yesterday that something like 2,000 people are on the unemployed list in Clondalkin and 3,000 on the unemployed list in Tallaght. Both of these towns have been served very well by Clondalkin Paper Mills in regard to employment. I hope that the Minister of State will clarify the position tonight once and for all regarding the future of Clondalkin Paper Mills. After discussions between the Minister for Industry and Energy, Deputy Bruton, the ICTU and the action committee, grave doubts exist in the minds of the workers there and of the action committee about the future of Clondalkin Paper Mills. Will they ever re-open?
It is true that Fianna Fail gave a commitment regarding the mills prior to the general election in 1982 but the mills are now in the ownership of the Government. According to a reply to a parliamentary question addressed to the Taoiseach on 19 April this year about £200 million worth of paper was imported into this country in 1982. Therefore, the markets are there. Many of the workers in Clondalkin Paper Mills have over 40 years experience in the paper making business. It is possible that the mills may have been overstaffed prior to the partial closure in 1981 and the final closure in 1982, but during discussions with the former Minister for Industry and Energy, Deputy Reynolds, agreement was reached that the mills, if reopened, would employ a work force of about 250. The re-opening of the mills in the very near future and the re-employment of some of the former staff would be of great benefit not only to Clondalkin, Tallaght and Ballyfermot but to the country in general.
The mills have been purchased and are in the ownership of the Government. I am surprised that some of the Deputies supporting the Government are so quiet about this matter. I was invited to a meeting organised by the action committee and the former employees of Clondalkin Paper Mills in June 1982. This meeting took place after the by-election in Dublin West when Deputy Skelly was elected. Deputy Skelly was at that meeting. Deputy Lemass was the defeated candidate in that by-election, and Deputy Skelly attributed a great deal of his success to the fact that Clondalkin Paper Mills remained closed. A number of other Deputies, some of them not now in this House but in the Upper House, were present at the meeting, as also was Deputy Taylor representing the Labour Party, and they all gave a commitment that if they were returned to office Clondalkin Paper Mills would be reopened. I do not like to criticise people in their absence and I am disappointed that some of these Deputies are not here tonight. We had to accept a good deal of criticism on that occasion in 1982. We were the Government of the day and we had a duty to provide employment for the people of Clondalkin, Tallaght and the surrounding district.
I understand that agreement was reached in regard to care and maintenance. I am well aware of the difficulties involved in getting the wheels to roll. I hope that the Minister will give the commitment we are seeking here tonight and that we will leave here quite happy about the future of the mills.
In reply to another parliamentary question yesterday addressed to the Minister we were told the IDA had plans to encourage new industries to establish themselves in the areas of Clondalkin and Tallaght. The industry we are discussing has been there for years. The skills and experience of the workers in Clondalkin, Tallaght, Ballyfermot and so on, in some families amounting to 35, 40 and 50 years, must not be lost.
If there is a minute left I would like to take advantage of it.
The Deputy is welcome.
I would like to associate myself with the remarks of Deputy Lemass and Deputy Walsh. I too have been involved from time to time with the workers in Clondalkin Paper Mills. They have been treated very shabbily during the past couple of years. It is extraordinary that the Government, having committed themselves to buying this factory, have not made moves to have it reopened. As Deputy Lemass stated, timber can be utilised in industry here and it is remarkable that it is being exported at £1 a ton and no effort is being made to produce the paper which this House and the local authorities use in abundance. I ask the Minister of State to confirm on what date it is intended to reopen the factory.
I am grateful for the opportunity of clarifying once again the Government's position with regard to Clondalkin Paper Mills. The Minister for Industry and Energy, Deputy J. Bruton, dealt with the question at some length in his reply on the Estimate for the Department on 21 June 1983. He stated:
The aim I have in regard to this Mill is to provide an attractive opportunity for the recommencement of papermaking, on an entirely viable and economical basis.
It is important to note that this is the criterion which the Minister has laid down for the re-opening of the paper mills. He went on to state:
I believe it is very important that we obtain a substantial participation, on a risk-bearing basis, by other interests apart from the State in papermaking in Clondalkin.
That is the position of the Government. It is not very different from the position taken by the former Minister for Industry and Energy, Deputy Reynolds, in his advice to the then Fianna Fáil Government. My understanding is that he regarded his remit as securing the re-opening of the mill on a basis which would provide viable employment in the long-term and he was very much aware of the involvement of the IDA and their attempts to attract an outside purchaser. It is important to note that the positions of the two Governments are not very dissimilar. Despite all the ballyhoo, it was this Government who purchased the assets of the mill last March for £1.75 million.
What do they intend to do with it?
Since then the Minister for Industry and Energy has been acting for the Government in seeking to have the mills re-opened on a viable basis. There is no point in re-opening the mills on a short-term basis knowing that the undertaking will not succeed and will not be profitable. The Government are committed to re-opening the mills on a basis which will be sustainable in the long run.
The best prospect lies in the involvement of private interests which would be prepared to share the substantial risks. A number of possibilities were explored and Deputy Lemass referred to them. In the absence of firm financial commitments no satisfactory proposals have as yet emerged. The most reasonable prospect appears to be a proposal submitted by Canadian interests. It is important to note that those Canadian interests which are currently being considered by my Department and the IDA are not the same interests that were present a year ago. These negotiations are proceeding actively and it would be premature to make further comment at this stage. It must be stressed that the Minister is not the sole arbiter of the pace of these negotiations and that the setting of a date for the re-opening of the mills is not possible at this time. I share the concern expressed and assure the House that it is the Government's objective to re-open the mills at the earliest possible date on a basis that will provide sound long-term employment.
Since the Government acquired the assets of the mills essential care and maintenance work has been carried out to ensure that the building and plant do not deteriorate. Most of this work was completed recently, leaving only certain structural repairs on hand. A detailed and extensive study is being done in tandem with this work on the refurbishing requirements of the mills. Decisions on this work must be closely related to and influenced by developments regarding the participation by private interests in the operation of the mills. The Government and my Department are acting very responsibly in this regard. We have clearly stated the basis on which the re-opening of the mills can take place. This will require the involvement of private interests and the profitable operation of the mills. Any other basis would not secure long-term employment.
Deputy Lemass mentioned the pulp mills. These mills were closed in 1980 and are not involved in the question we are at present discussing. Their main customer in England closed down. The pulp mills are owned by the Clondalkin Group and were not involved in the closure and the subsequent purchase by the State of the paper mills.
Deputy Walsh asked about the value of imports of paper products. The figure quoted of £200 million does not necessarily mean that paper to this value can be produced profitably in Ireland. That is a matter which must fall to be determined by the new owners of the mills — the Government and private enterprise.
The Government's position was made very clear to the Irish Congress of Trade Unions on 22 June. It is understood that we are not prepared to open the mills except on a viable basis and with the involvement of private interests. That is a reasonable and responsible position. It might not meet with the requirements of Deputies opposite but we have a responsibility to ensure that public funds are expended on a sound and intelligent basis.
I appreciate the difficulties faced by former workers at the mills during the past few months. It is fair to point out that they were compensated by extrastatutory redundancy payments. Even taking that into account, it is our wish that the mills should re-open at the earliest possible date and we will do everything in our power to secure the long-term viability of the mills. Hopefully the negotiations in which we are involved will bear fruit and we can look forward to the re-opening of the mills in the not too distant future.
The Dail adjourned at 12.30 a.m. on Thursday, 7 July, 1983 until 10.30. a.m.