Skip to main content
Normal View

Dáil Éireann debate -
Wednesday, 12 Jun 1985

Vol. 359 No. 7

Adjournment Debate. - Mountrath (Laois) Sawmills.

May I express my gratitude for allowing me to raise this very important matter on the Adjournment? This debate relates to the threatened job loss of 40 people employed in the sawmilling industry in Mountrath. Those jobs are being put at risk because of the policies being pursued by the Department of Fisheries and Forestry in relation to the tendering system at present in operation under which sawmills purchase their raw materials.

I do not have to remind the House of the importance of the sawmilling industry to the economy. Many hundreds of workers are employed in this industry and there are thousands employed directly and indirectly in the forestry industry. It is extremely important that this House and the Minister responsible for forestry immediately examine the situation in which this industry find itself. This State industry is supplied with raw material from State forests. Unless the Minister faces up to his responsibility, unless he reorganises the system in the Department which sell timber to the sawmills and make this industry competitive, thousands of jobs will be lost.

This is the only industry in Mountrath giving employment to approximately 40 workers. If these workers lose their jobs there is no other industry to provide alternative employment. These people have been on short time for six weeks and during that period the Minister had an opportunity to try to reorganise and rationalise the system for making timber available to our sawmills. It would be better for the Minister to face this task immediately than for the Department of Social Welfare to have to pay social welfare to these 40 workers.

As was explained at a public meeting last Friday night, these people want to work. They do not want to go on the dole. Mountrath sawmills have one of the finest industrial relations records in the country. There was never a strike in that industry. It is pathetic that that industry is being forced to close its doors because of the system operated by the Department. There is an immediate need for the Minister and the Government to face up to their obvious responsibilities in this area. The time has come when we must recognise that there is a great potential for the development of forestry as a basic national industry not only from the point of view of job creation but to ensure that in the long term we make adequate provision for supplying our own timber needs.

One of the great problems facing the sawmilling industry at present arises from the deteriorating and scaling down of the construction industry. Fianna Fáil always recognised the value of that industry for the purpose of a job creation. If you talk to any manager of a sawmill, he will tell you that over the past two years in particular the demand for timber products has seriously declined. It is very easy to see why this happened, because the level of house building is at an all time low.

It is sad to say that what is happening in Mountrath will happen in every sawmill in the country unless immediate action is taken. Mountrath, one of the most efficient sawmills in the country, has been forced to take this action. We were told that an opportunity would be provided for the people who manage the sale of timber from our forests to face up to their responsibilities. All the people in this industry are asking is that they be given the same opportunities that sawmills in Northern Ireland and foreign industries are being given. That is not an unreasonable request from an old established industry. It is not an unfair request to ask this Government to recognise the difficulties in which this industry finds itself.

The time has come to have another look at the situation in relation to forestry development. For far too long the heavy hand of the Civil Service has inhibited and restricted the development of forestry. It has been governed at Civil Service level by people who are not aware of the problems on the ground. The sooner we face up to that reality, the better for the country and for the industry generally. There is no doubt that this most important industry can be developed as one of our greatest, because it is based on one of our natural resources.

We have always claimed agriculture to be one of our greatest natural resources and there can be no arguing that forestry could also be. There is no area in which more jobs could be productively created than in the general area of forestry. Any man or boy employed in planting a tree or harvesting timber from our forests is engaged in gainful and productive employment. It amazes me that this Government and this Minister have decided to reduce the Estimate for forestry development, to scale down the overall capacity of our forests for employment. They are doing so at a time of the highest unemployment levels ever recorded in the history of the State. If the Government were even remotely interested in creating productive employment — and they tend to talk about productive job creation — surely this is the obvious area in which to engage more people in planting our wasteland and in harvesting, preserving and maintaining our forests.

Foresters will tell you that at present our young forests are choked and overgrown because of insufficient manpower to keep them clean, yet the Department of Social Welfare on the one hand are handing out millions of pounds to keep people on the dole and at the same time there is a productive Government Department waiting with hands outstretched to take on additional workers. Why can two Government Departments not put their heads together realistically, with a view to transferring resources from an unproductive area, the Department of Social Welfare, into the productive job creation area, the Department of Forestry? It is a shame on the Department and the Minister for Forestry that this area is not being productively developed in the national interest at present.

As a follow-up, the same Department are going to allow the sawmills throughout the length and breadth of the country to close down because they are making it impossible for these to purchase the trees planted as an investment by the people. These trees should now be made available at a competitive price to people who are giving employment and these are undoubtedly the people involved in sawmilling.

I make a final appeal to the Minister to take immediate steps to keep Mountrath Sawmills open — just one example of the number of sawmills threatened with closure in the immediate months ahead, unless we face up to reality. I promised Deputy Flanagan the opportunity of saying a few words in this debate because he was present with me at the recent meeting in Mountrath and I do not want to deny him that opportunity.

I have had the honour for a long time of representing the county of Laois in this House. We have had many meetings and discussions in the area of Mountrath, but never in my long experience have I felt such disappointment and anger as on Friday night last when one of the largest public meetings ever held in that district was held in connection with the proposed closure of Mountrath Sawmills. In that town, 40 people are about to lose their employment and they have at least four dependants each so there are 160 people about to be seriously affected as a result of the proposed closing of one of our most outstanding and progressive sawmills. I am told that the price to purchase logs from the Department of Forestry has increased by 40 per cent and the price of the sawn timber is down by 15 per cent to 20 per cent. If that is the case, no business concern can function effectively, economically or efficiently in that industry.

Is it a fact that other sawmills in which there are foreign interests obtain certain concessions which are not given to sawmills such as Mountrath? If this is so, I should like to hear it from the Minister. As Deputy Hyland is aware, I have already made very strong representations within the past 48 hours to the Minister for Industry, Trade, Commerce and Tourism and to the Minister for Fisheries and Forestry asking that a deputation of local interests be received as soon as possible, so that there can be a full and frank discussion on this very important matter.

There is no other industry in the town of Mountrath. This is a town with large numbers of unemployed. There is a large young population and the town has made several efforts to direct the attention of the IDA to its industrial needs and requirements, without success. How can we, as public representatives, stand idly by and remain silent when the only industry is faced with closure and the 40 workers who have been traditionally associated with sawmilling for many long years are thrown on to the unemployment queues?

This is a very serious matter for the town and for the families involved. I want to make one request, that the Minister for Industry, Trade, Commerce and Tourism arrange as soon as possible to receive Deputy Hyland and myself who were present on the occasion of the meeting in order to have a very full and frank discussion on the matter. One matter raised very forcefully by everyone who spoke at the meeting was the decline in the purchase of timber because of the stagnation of the building industry. If that industry is thriving, there is greater demand for furniture, timber, roofing, flooring, windows and doors. Because of the present state of the building industry, it was conveyed to us that the market for timber and timber products has steadily declined. I respectfully say that if this be so the time has come for a complete review of the whole situation.

Hear, hear.

Timber is one of our own natural, native products. We have the raw material necessary for sawmilling and the timber industry generally at our door, within three miles of the town of Mountrath. We have there some of our finest forests. I would ask these two Ministers to get together, certainly within the next six weeks because that period of breathing space has been given to the sawmills. If there are difficulties, let them remove them; if there are problems which prevent the Department of Forestry from supplying timber at an economic rate, it is more important to have people working and the sawmilling industry thriving than to have books and ledgers being written up——

Hear, hear.

——in such a manner as to convey that it is more important that the ledgers balance and bureaucracy is in control, than that 40 people will now be thrown out of employment. I am glad that Minister of State, Deputy D'Arcy, is present at this debate. I beg him to consult with the Minister, Deputy Bruton, on this matter and also with the Minister for Fisheries and Forestry. We want this problem solved immediately. I urge that a serious and sympathetic view be taken and a reasonable attitude adopted towards this most important industry. I am sure they will be gracious enough to be helpful and co-operative in this matter.

Hear, hear.

(Mr. E. Collins): I should not like to see the question raised by Deputy Hyland and Deputy Flanagan blown out of proportion. I understand that the mill at Mountrath is to close temporarily for six weeks. This will mean a temporary lay-off for the 40 workers for that period. I understand and sympathise with the workers concerned but one should understand that of its nature the sawmilling industry is cyclical. There is a tendency by the Opposition to point a finger at the Government but the company who own the sawmills at Mountrath, Irish Forest Products, have taken a decision to close. It is a private industry and this is one of a number of plants owned by a major business.

It is Government policy that is forcing them to close.

I want to make it clear that Government policy did not close the Mountrath sawmills.

Government policy is responsible for what has happened in the building industry.

The Deputy should allow the Minister to continue without interruption.

Lest the Opposition or anyone else be under any misapprehension, Irish Forest Products have got considerable aid from the IDA and from Fóir Teoranta. I want to state quite clearly that the production, output and value from sawmills have increased in the past three years. That may be Government policy.

The market has declined for timber products——

The Chair will insist that speakers get a hearing.

The Minister should not misrepresent the position.

The Deputy is being disorderly.

I am presenting the position as it is known to me. I wish to state quite clearly that since the joint IDA-Forestry and Wildlife Service report in 1981 was published production capacity has expanded. The supply of saw logs from State forests has increased from 443,000 cubic metres in 1981 to 550,000 cubic metres in 1984. That is a considerable increase in supply in the industry.

There are difficulties in the sawmilling industry. There is a question of over-capacity which has to be dealt with within the industry itself. I understand the reason for the temporary lay-off is market conditions for the finished products. It is a normal day-to-day decision that has to be taken by the company in the course of their normal management functions. I am sure they are doing so to ensure the survival and continued prosperity of the company as a whole. I hope this temporary lay-off will be seen in that light.

Much publicity has been given to the problems of the sawmilling industry in recent times. A new strategy for the sector was embarked upon after publication of the report to which I referred. This involved the upgrading of the sector's ancillary equipment to enable it to produce higher value products aimed particularly at the construction timber market. At that time Irish timber had only a 10 per cent share of the market which was then estimated at £80 million. I understand the share of the market is 30 per cent now which is a significant improvement and that should be recognised in the House. It should also be recognised that the IDA have given grants and subsidies to the amount of £5 million to this sector since 1981.

Will the Minister address himself to the point I raised in relation to the marketing and sale of timber from State forests? That is the problem in relation to the industry. The Minister is talking around the problem but is not dealing with reality.

The Deputy should control himself.

I am well aware the local elections are around the corner and that the Deputy may wish to score political points this week.

I am not interested in the local elections. My record will stand regardless of whether I am a candidate. I am concerned about the jobs of 40 workers in Mountrath but the Minister is refusing to deal with the problem.

The Deputy is being grossly disorderly.

I have been provoked into being disorderly.

The Chair will have to adjourn the House if there is not order.

I am being provoked into being disorderly because the Minister will not deal with the problem.

If the Deputy does not leave the House I will adjourn it, or else he must behave himself.

I will behave myself.

The Deputy has now deprived me of some time in which I could have explained the Government's strategy for the industry. However, because he wished to score cheap political points I have been deprived of some time which is unfair.

The Minister should not waste any more time.

There is over-capacity in the industry. Some years ago the Forestry and Wildlife Service introduced a large saw log qouta scheme whereby those mills best equipped to implement the new strategy would obtain a certain proportion of their timber requirements at a set price and within a specified catchment area. Despite the new strategy and the quota scheme, there have been many complaints from the industry about price, location and amount of available raw materials. The closure of a major sawmill in Fermoy, Homegrown Timbers, in late 1983 prompted the Government to set up an interdepartmental committee to examine the effects on the industry and generally of the FWS quota system. This report indicated a number of areas that required attention and the matters will be discussed at a meeting which the Departments and the State agencies concerned will convene shortly. It is here the Government will review overall strategy in relation to the industry as a whole.

I am aware that there are some weaknesses. I know there is still a need for tightening up on quality and on marketing and I cannot avoid making this comment in the House. Much needs to be done by the industrialists themselves. Pointing a finger at the Government is not the answer to the problem. This is an industry the same as any other in the State. It has its strengths and its weaknesses and it can survive with good management. The factory we are talking about tonight is part of a very strong group that has a predominant place in our overall industrial strategy. I am satisfied that group will address themselves to the problems of the company and that the lay-offs will be temporary.

The Dáil adjourned at 9 p.m. until 10.30 a.m. on Thursday, 13 June 1985.

Top
Share