I move:
That a sum not exceeding £18,448,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of December, 1985, for the salaries and expenses of the Office of the Minister for Fisheries and Forestry, including certain services administered by that office and sundry grants-in-aid.
I propose as in previous years to discuss the Fisheries and Forestry Estimates together and I shall move the Forestry Estimate at the conclusion of the debate.
The amount provided for the Fisheries Vote this year represents an increase of 13 per cent over last year's outturn and will be adequate to continue the development of our sea and inland fisheries resources.
During 1984 the value of landings of sea fish, excluding salmon, at ports at home and abroad by Irish registered vessels was £55 million. The value of exports of fish and fish products during the year was £85.7 million. The principal export outlets continued to be France, Britain, West Germany, the Netherlands and, outside the EC, Nigeria, Spain, Sweden and Egypt.
The importance of promoting the fish processing industry as a means of adding value to our fish landings and increasing employment in the fishing industry is recognised fully by the Government. To that end generous State and EC (FEOGA) grant aid is available for approved projects. Investment in shore base processing facilities continued in 1984. During the year seven fish processing projects — all in Gaeltacht areas — involving a total capital commitment of £3 million which included State grants amounting to £0.7 million, were approved for EC (FEOGA) grant aid of £1.5 million. I urge our industrialists to consider this area of economic enterprise to the benefit of themselves and the nation.
The promotion of marketing of our fish and fish products at home and abroad by Bord Iascaigh Mhara (BIM) continues as an on-going priority item of Government policy. An increased financial allocation has been made in 1985 to BIM in accordance with the Government's programme Building on Reality. The extra funds for marketing will enable BIM to increase our development work in the home and export markets and so broaden our national fishery marketing base.
The Advisory Committee on Marketing, which comprises representatives of all sectors of the industry, continue to meet under the chairmanship of Deputy Michael D'Arcy, Minister of State at my Department, and make valuable practical suggestions for the improvement of marketing arrangements for fish.
The Egyptian market for bulk frozen mackerel, which is the highest volume species landed by the Irish fleet, has been reopened with significant exports to date in 1985. In the case of the important Nigerian market for our frozen mackerel import licensing difficulties were experienced in early 1984. At my request, marketing officers of Bord Iascaigh Mhara visited Nigeria to investigate the situation. Subsequently the licensing difficulties were resolved and I am pleased to say that the Nigerian market for our frozen mackerel opened up again in August 1984 and no problems have been experienced since.
Exports of herring to Poland have increased substantially. In the promotion of the Polish market for our fish the Minister of State at my Department visited Poland in 1984 and the Polish Minister for Fisheries visited Ireland in March 1985 in continuance of the trade talks. Within the EC our exports to France have increased substantially and now account for about 27 per cent of our total exports. Accompanied by BIM marketing officials I visited France in 1984 to promote the market there. In early 1984 I visited Japan also in the interest of market promotion. I am pleased to say that the established export trade with Japan in herring roe has been successfully broadened to include such high value shellfish products as crab and Dublin Bay prawns. The USA market is also receiving attention and exports to that country have trebled over the past three years.
During 1984 Bord Iascaigh Mhara continued their work of developing the home market for fish by such means as advertising and publicity, consumer education, fish cookery and advisory service, training courses for the distributive trade, and retail fish distribution and advisory service.
The board's market promotion strategy is aimed at increasing the consumption of fish at home by creating a national awareness of fish as a valuable wholesome food, suitable for use at any meal. The success of the board's work in so increasing the demand for fish at home depends largely on close co-operation between BIM and the fish trade. I therefore exhort fish traders to co-operate fully with Bord Iascaigh Mhara in their market development work at home and abroad. In the area of marketing I would like to stress the importance of quality and presentation at all stages of sale. With notable exceptions the grading and handling of fish leaves a lot to be desired and I would urge all sections of the industry to take steps to remedy this situation in their own and in the national interest.
In pursuance of Government policy to develop the sea fishing industry to its fullest extent my support continues for the on-going programme of fishery harbour development. The amount allocated this year in subhead C.2 of the Vote for fishery harbour improvements is £2,700,000. This sum is provided to pay for work in progress at the start of the year and to commence some urgently needed new work.
During 1984 the work on the Howth development was completed with the exception of the final testing of the syncrolift, the installation of the ice plant and resurfacing as necessary. Work on the syncrolift and the ice plant was completed recently and the necessary resurfacing is going ahead. At Castletownbere storage accommodation for machinery and toilet facilities were provided.
In 1984 also harbour works were undertaken at Kilmore Quay, County Wexford; Cahirciveen, Cashen and Scraggane, County Kerry; Seafield, County Clare; Dooneen, Youghal and Garnish, County Cork; Skerries, County Dublin; Kilcummin and Rathlacken, County Mayo; and Rathmullen and Portmore, County Donegal. Site investigation works were undertaken at Schull, County Cork and at Carrigaholt, County Clare. At the end of 1984 works were in progress at Killala, Inch Island, Bone Rock and Belderrig, County Mayo and at Portevlin, County Donegal.
For 1985 I have approved a comprehensive programme of harbour improvement works. This programme provides for the completion of works in hand and includes major development works at Greencastle, County Donegal, and Schull, County Cork, and the provision of a syncrolift at Killybegs, County Donegal. As well provision has been made for further site investigations at Clogherhead, County Louth, and initial investigation at Darby's Point, County Mayo, and for works of a lesser degree at various other harbours and fish landing places. Work on these projects will commence as soon as the necessary financial arrangements have been finalised.
BIM will provide funds of approximately £4.8 million by way of investment in the fleet. The main thrust of investment will be directed towards the modernisation and re-equipping of existing vessels. Additional funds cannot be provided towards the construction of new vessels which require BIM loan finance, because of the substantially reduced repayments by existing vessels. For the same reason, it has been found necessary to assign £2.5 million of the £4.8 million referred to above to meet instalments due by fishermen in respect of bank loans which have been guaranteed by the board.
The scope of the board's marine credit plan has been increased to cater for white fishing vessels up to 33 metres in length and if a suitable proposal is received for such a vessel, which would qualify for a FEOGA grant, the board would be in a position to provide the necessary grant finance this year in respect of such a proposal.
Recognising the difficulties being encountered by large segments of the fleet in meeting their financial obligations, the Government agreed a package of aid measures earlier this year involving the full remission of excise duty on fuel oil used in fishing and extra funds for marketing, exploratory fishing and harbour development, together with a re-vamping of loan repayments arrangements under BIM's marine credit plan involving extra subsidies on interest rates for a three year period. I am confident that this package of measures will bring the vast majority of fishermen back to economic viability before too long. BIM are in the process of finalising agreements with the banks and individual fishermen for the implementation of the new loan arrangements.
In regard to the Common Fisheries Policy, the agreement on total allowable catches (TACs) and quotas for 1985 at the Council of 19 December 1984 represented a major breakthrough, being the first occasion upon which TACs and quotas were introduced before the start of the fishing year. The fact that this was achieved under the Irish Presidency gives cause for satisfaction. In regard to the details of the quotas, I am convinced that we got a reasonable result, given the state of some of our stocks, particularly mackerel, which is such a vital component of the industry.
I am glad to say that the comparatively new surveillance force of EC inspectors is already beginning to make its presence felt and has, for instance, clearly identified cases of over-fishing by some member states. The Community's conservation policies, in particular, are the main guarantee of the availability of stocks in the future. We know that the mere introduction of regulations does not ensure compliance with those regulations in spite of the best efforts of national Governments and we therefore welcome the additional assistance which the EC inspectorate can provide.
There is one other area which, while it does not strictly come within my writ, is nevertheless of great concern to me. I refer, of course, to the accession of Spain and Portugal and, in particular, the implications for the fisheries sector. It must first be clearly stated that there was already a political decision dating back to 1979 to admit Spain and Portugal to the Community. Thus our task was to agree the details of accession in the various sectors, including fisheries which proved to be particularly difficult. We have aired these problems in the House on more than one occasion and I do not propose to deal with them in detail now. However, I think we can take particular satisfaction from the continuation of the Irish box for ten years after accession and the tight restrictions on the number of Spanish vessels permitted to fish in our general area, which will be limited to less than 100 until the next century when the whole Common Fisheries Policy falls to be renegotiated.
The negotiations were long and tedious and I take the opportunity of paying tribute to my colleagues, the Minister for Foreign Affairs and his Minister of State, for their efforts in achieving agreed terms which represent a very acceptable deal for Ireland.
Work is continuing apace in my Department on the drafting of a new White Paper on Fisheries Development reflecting the views expressed in the reports of the Sectoral Development Committee and the Sectoral Consultative Committee on Fisheries. I would hope that this document will be available for publication later this year.
I would like to place on record my appreciation of the valuable work performed by all the staffs engaged in fishing protection duties, namely the Naval Service, the Garda and officers of the various fishery boards.
The interest in fish farming up and down the county remains high and generous grants will continue to be available for both pilot and commercial scale projects to enable further development to take place in 1985. I am glad to say that a start has been made with the implementation of the designation process provided for under the 1980 Fisheries Act and I am hopeful that further progress can be made with this and with licensing of individual projects in the current year. A number of public inquiries were held during the course of 1984 at which substantial objections were raised and I would hope that the series can be completed this year and the process of making designation orders proceeded with. I would like to stress here that until such time as a designation order has been made it is not possible to proceed with individual licensing in any area.
I now turn to inland fisheries. The Central and Regional Fisheries Boards, which were set up in October 1980, continue to work for the better conservation, protection and development of every aspect of our valuable inland fisheries. A total of £4,445,000 is allocated to the boards in 1985. I am glad to say that, in accordance with section 32 of the Fisheries Act, 1980, the staff scheme for the staff of the central and regional boards was agreed to by both management and unions in December 1984 and is now being implemented.
The most important aspect of our inland fisheries is our salmon fisheries. Catch figures for 1984 show that the total weight of the salmon catch by all methods was 844 tonnes valued at £4.7 million as compared with 1,515 tonnes valued at £6.7 million in 1983. This decrease of around 44 per cent on the 1983 catch is a cause of major concern. In view of this, if salmon stocks are to be preserved and rehabilitated there can be no relaxation in the various conservation measures at present in force and, indeed, more stringent measures may be necessary. Illegal salmon fishing continues to be a major factor in the decline of salmon stocks and I am considering what further steps can be taken to deal with this problem.
I have recently had a meeting with the Central Fisheries Board which represents all aspects of inland fishing and the views of the board to improve the way in which our salmon fisheries are managed will be considered in the context of the White Paper on Fisheries now being prepared. The development of our trout, coarse and eel fisheries are also of great importance and will be covered in the White Paper. The contribution of well managed fisheries to the welfare of our people in providing excellent leisure activity cannot be measured in pounds and pence. The revenue from tourism can and the benefits to the economy are considerable.
Responsibility for the control of water pollution rests with the Department of the Environment and the local authorities. However, the fisheries boards continue to play a leading role in the battle against water pollution in the interests of protecting fish life.
Progress continues in the rehabilitation of Lough Sheelin as a major trout fishery. The slurry transport subsidy scheme operated by the Lough Sheelin Management Committee had, by the time it ceased operation on 31 December 1984, succeeded in restoring the lake to an acceptable condition. I am pleased to be able to say that approximately 52 million gallons of excess slurry were removed from the Sheelin catchment under the scheme since its inception in December 1980.
In order to ensure that the improvement in the condition of the lake is maintained, a new management committee for the Lough Sheelin catchment has been set up by Cavan County Council.
The Salmon Research Trust of Ireland Incorporated continues its research into the biology of the salmon and the factors relevant to its future survival as a species. A grant-in-aid of £70,000 is allocated to the trust for 1985. Since 1972 the trust has been funded on a 50-50 basis by my Department and Arthur Guinness and Sons Limited. This agreement expired at the end of 1984 and a new agreement was reached between my Department and Messrs. Guinness. This ensures that the trust will continue its work as heretofore for the next five years to the end of 1989 when its future will be reconsidered. During this five year period the financial commitment of Messrs. Guinness will be met by way of transfer to the trust of some capital assets valued at an estimated £144,000. These include a smolt rearing station which it is estimated will yield a profit to the trust of £45,000 in 1985 and a similar amount in future years.
A sum of £142,000 is included in the Estimate to meet our contribution towards the expenses of the Foyle Fisheries Commission. It will be paid to the commission to offset part of its 1985 deficit. The Department of Agriculture for Northern Ireland will be paying a grant to the commission to meet the balance of its 1985 deficit. I am satisfied that the commission is continuing to do everything possible to keep its annual deficit to a minimum consistent with fulfilling its obligations under the Foyle Fisheries Acts to conserve and manage the fisheries in the Foyle area.
I recommend this Estimate to the House.
I will now turn to the Forestry Vote for 1985. The gross total being provided for forestry for the current financial year amounts to £49.406 million which represents an increase of 4 per cent over the provisional outturn of expenditure in 1984. However, as in previous years, the demand on the Exchequer will, as I shall explain later, be reduced by some £14 million, arising mainly through timber sales and some other lesser sources of revenue such as rents from grazing and shooting lettings, the sale of foresters' houses and sales of surplus plants.
Before going on to deal with the main elements of the Forestry Vote, I think it would be appropriate at this juncture to refer briefly to a very important development since last year, namely, the establishment of the special review group on forestry. In accordance with Government policy, as set out in Building on Reality 1985-87, the group, with membership from inside and outside the public service, has been set up to examine and report on the structure, organisation and operation of the Forest and Wildlife Service and to make recommendations on the most appropriate methods of exploiting the expanding forestry asset to the best national advantage.
The establishment of this broadlybased review group is in line with the Government's overall strategy for promoting the national economic well-being and reflects a continuing commitment to promoting the ongoing development of our indigenous resources. The progress of the State forest estate over the past decades has now reached the point where wood production — both pulpwood and sawlog — has begun to expand rapidly. The review group is taking a fresh and objective appraisal of the entire structure of the Forest and Wildlife Service and will put forward proposals aimed at ensuring that the organisation will be geared to the challenges of the future. The group's deliberations are now well advanced and I have no doubt that their findings will be of major benefit in helping to chart the way ahead. I await eagerly the outcome of their deliberations.
I will now comment on the more important subheads of the Forestry Vote and, in doing so, I shall have something to say about the timber scene generally. Needless to say I will be happy, when replying to the debate, to deal with any lesser points on which Deputies may require information.
Salaries, wages and allowances are provided for under subhead A.1. the amount proposed for 1985, namely, £11.728 million represents a small reduction on the corresponding provision last year. The overall staff complement has been reduced somewhat but the current year's provision takes account of salary increases operative from 1 January 1985.
The next subhead which call for comment is B.I, which caters for travelling and incidental expenses and for which an increased provision of £298,000 is being made. The major element of the subhead concerns travelling — and more particularly home travel — which is an inescapable feature of forestry operations, including such activities as inspection work of various kinds, marking of timber for sale, supervision of felling and extraction operations and so on. It is particularly important that adequate funding be provided for these purposes to ensure an efficient service to the public and to generate maximum revenue for the FWS. I should point out that the level of expenditure incurred on foreign travel is quite low and arises mainly in the context of the need to service EC and other international organisations with which the FWS are involved.
In subhead B.2 the increased provision for postal and telecommunications services reflects, apart from increased charges by An Post and Bord Telecom, the countrywide nature of the Forest and Wildlife Service activities. Postal and telecommunications charges are expected to cost £793,000 in 1985 or 22 per cent more than in 1984.
Subhead B.3 provides £270,000 for the purchase of office machinery and other office supplies. There is an increase of 28 per cent over last year, the bulk of which is attributable to the provision of some essential computerisation facilities in the Forest and Wildlife Service.
Subhead C.1 takes the form of a grant-in-aid for acquisition of land. Under this heading a sum of £4.25 million is being provided which, when added to a balance of about £0.80 million remaining in the acquisition fund since last year, makes a total of £5.05 million available for the purchase of land for afforestation in 1985.
While in present financial circumstances an allocation of this order, which exceeds last year's provision by £775,000, must be regarded as extremely creditable, the level of land intake still continues to be inadequate, especially having regard to the existing plantable land reserve situation. However, I can assure the House that the money being provided for this purpose will be used to the best possible advantage in the interests of consolidating and expanding the national forest estate.
At the end of 1984 contracts between my Department and landowners for the purchase of land for forestry purposes stood at 8,000 hectares, 20,000 acres, and it is estimated that some 6,250 hectares, 15,625 acres, will come into the possession of the Forest and Wildlife Service in 1985. I would very much like to see a substantial increase in this level and I will continue to use my best endeavours to secure even more generous funding for land acquisition in the years immediately ahead.
Subhead C.2 makes provision for forest development and management and the proposed amount namely £27.687 million, accounts for almost 75 per cent of the total nett Vote. Not surprisingly, this subhead invariably proves to be the focal point of the debate on the Forestry Estimate as it embraces the wide range of activities inseparable from the development and management of the national forest estate, which now stands at almost one million acres.
As the breakdown in the Estimates volume of the various components of the subhead is largely self-explanatory, I do not propose to go into it in detail but there are a few aspects to which I would like to refer specifically.
In the context of part (1) of the subhead — which provides funds for my Department's 14 nurseries which produce the plant supply for the State afforestation programme — it is necessary this year to include some extra money for the purchase of seed. The reason for this is that a succession of poor years for home production of seed of some species, particularly Sitka Spruce, has resulted in depleted stocks and purchases from abroad have become necessary to provide seed for current use and for a build up of a reserve stock.
Part (2) of the subhead relates to the various elements involved in the establishment of plantations, in other words, the current year's planting programme. It is expected that the level of funding proposed, which is at about the same level as last year, will result in the afforestation or reforestation of some 7,000 hectares. I would draw attention to the fact that, out of the total subhead C.2 provision of £27.687 million, upwards of £19½ million represents wages, reflecting the fact that the Forest and Wildlife Service continues to be a major source of rural employment. Indeed, the labour content of this subhead, together with the wages provisions in some other minor elements of the Vote, means that the FWS currently has a total workforce of approximately 2,450, the majority of whom are engaged in manual and machine operations at 246 forest centres throughout the country.
Another facet of subhead C2 which merits special mention — and one in which Deputies on all sides of the House usually show a very keen interest — is the forest amenity programme provided for in part (3) of the subhead. Some 20 years have passed since my Department originally decided to exploit the amenity and recreational potential of State forests in the public interest. It has been an extremely rewarding process achieved at comparatively moderate cost and I am glad to say that progress is continuing satisfactorily.
At present the Forest and Wildlife Service is primarily concerned with the upkeep of a network of 11 forest parks and more than 400 other lesser amenity developments which have been provided throughout the country. Over 90 per cent of the relevant provision relates to labour costs necessary to maintain these amenity areas in the interests of the 1.5 to 2 million visitors who use them annually.
Last year I mentioned a proposal to provide a holiday chalet complex in Killykeen Forest Park, County Cavan. I am pleased to say that work on this project, which is being assisted by the EC Regional Fund and which involves the construction of 20 self-catering wooden chalets, made almost exclusively from Irish timber, is now at an advanced stage. I have no doubt that, when operational, this novel and exciting development will considerably enhance the economy of the locality. I am also pleased to say that my Department, again with assistance from the EC Regional Fund, is actively considering the establishment of a long distance walk in the Cooley peninsula. It is envisaged that this walk will link up with the "Ulster Way" and eventually with an "All-Ireland Way". It is proposed to include an interpretative centre in the Carlingford district as a feature of the project.
Provision is made in subhead D for the payment of grants to encourage the expansion and promotion of private forestry. While obviously there has been tremendous progress in the sphere of State afforestation over the years, a contribution of any major significance from the private sector has still to emerge.
I am particularly anxious, and indeed quite determined, to see an early substantial increase in the level of private planting and I am encouraged by the interest in such activity which has been shown of late in some quarters and especially by investment agencies. The available grants are extremely attractive and expert advice is available from technical officers of the Forest and Wildlife Service.
This makes the slowness of the response to date all the more surprising. I hope later in the year to engage in more intensive publicity for the planting grant schemes but, in the meantime, I urge Deputies, through their normal contacts with landowners and other potential planting agencies, to encourage an interest in forestry in every way they can. In doing so they will be stimulating a development which will not only benefit those directly involved and their successors but will also augment in a meaningful way the important national asset which woodlands constitute.
Subhead H covers expenditure on the wildlife conservation programme, the provision for 1985 being £178,000. A major element of the programme consists of research into wildlife species and their habitats. The Forest and Wildlife Service has recently compiled a comprehensive list of areas of importance for wildlife throughout the country and the appropriate maps have been sent to all planning authorities. While, due to prevailing constraints, progress in giving statutory protection to a representative sample of these sites has not been as rapid as I would wish, nevertheless some progress has been possible. I am pleased to say that in the past year the number of nature reserves established under the Wildlife Act, 1976, has been brought to 21 and these reserves are now being managed by the Department to ensure the conservation of the important ecosystems which they constitute. Further areas are being examined by my Department with a view to granting them nature reserve status during the year.
Having regard to our international obligations as a member of the European Community and our contractual commitments under international conventions ratified by Ireland, nature conservation cannot be regarded solely as a national responsibility. My Department are responsible for implementing a range of Community directives and regulations as well as a number of international conventions relating to the protection of wildlife and natural habitats. During the past year Ireland ratified another such convention, namely, the "Ramsar Convention on Wetlands of International importance especially as Waterfowl Habitat."
Public interest in wildlife continues to be keen and there is a constant demand for information and literature. My Department meets this demand by distributing a range of educational leaflets — a service which is supplemented at a local level by the wildlife ranger corps who, in addition to giving lectures and advice, contribute articles on wildlife to local newspapers. Incidentally, subhead G, which provides for game development and management, relates almost entirely to the pay of these wildlife rangers whose duties also include enforcement of the Wildlife Act, 1976.
The Wildlife Advisory Council, established under section 13 of the Wildlife Act, continues to provide me with on-going advice on various wildlife conservation matters and it would be ungracious of me not to acknowledge wholeheartedly the dedication of this voluntary group and their valuable contribution to the conservation scene.
Subhead I refers to agency, advisory and special services. The main provision in the subhead relates to the funding of timber technology research undertaken on behalf of my Department by the IIRS. The expenses of bodies such as the Wildlife Advisory Council and the review group to which I referred earlier are also borne by this subhead.
I come now to subhead J — Appropriations in Aid of the Forestry Vote. As Deputies will see, total receipts for 1985 were projected at £12.861 million, it now seems likely that this forecast, the bulk of which concerns timber sales, may well be undercast and that receipts may turn out to be slightly higher than the eventual outturn for 1984 which amounted to just over £14 million. Through 1984 the market price of home grown sawlog from the State forests increased steadily in line with the price of imported sawn softwood. This trend continued into the early months of 1985 but now shows some signs of levelling out as the lower level of activity in building continues not only in this country but also in Europe and even further afield. There is, however, no sign of any general collapse in the price of imported sawnwood although occasionally some small lots at keen prices may be on offer.
I understand that many highly efficient mills throughout the world are currently operating at a level of no more than 60 per cent of their normal production, with very tight profit margins. It would be unrealistic to expect the general scene in Ireland to be different. Indeed, since there is now substantial excess sawing capacity in this country, the average production level here could conceivably be lower than 60 per cent.
I have already drawn the attention of the trade here to the problem of national over-capacity in sawing relative to the real availability of sawlog supply from the State forests. This supply, which amounts to 600,000 cubic metres in the current year — admittedly somewhat lower than the theoretical annual production — is the best that can be achieved in the light of various silvicultural and other constraints. There are, however, some 150 mills of varying size and efficiency striving for supplies and, even now, some other individuals are — unwisely, in my view — seeking to open additional new mills. This is quite unrealistic in the prevailing supply situation and there are bound to be some casualties because in a free market only the most efficient can survive.
I am gravely concerned at recent reports of sawmill closures, whether temporary or permanent. I accept of course that these occur for well-founded commercial reasons, but I reject any suggestion that they relate solely to the supply or price of the timber made available by my Department. Such factors as the prevailing scale of activity in the housing sector, the extent of overheads relative to possible production levels in existing supply and market conditions, the staffing situation in older mills compared with the more modern enterprises using newer technology, product quality and mix, management expertise, production and marketing efficiency — these are but some of the many complex factors affecting viability and profitability in the timber industry no less than in other industries.
The policy and practice of my Department in regard to the disposal of State-owned timber has been fully documented in the report of an inter-departmental committee on the tender-quota system of timber sales which was published within the past year and copies of which I circulated to all Deputies. Most of the recommendations in that report are in the process of implementation. Specifically, the sale of timber by auction is being introduced as an addition to the tender system, the first such sale being scheduled for the latter part of next month. Moreover, the criteria for assessment of sawmills for purposes of awarding quotas are being reviewed by my Department in association with the timber trade itself, the IDA and the IIRS.
Incidentally, subsidised prices for sawlog sales under the quota scheme have been discontinued and market price is now being charged for such allocations.
For the moment, however, I have deliberately deferred the setting up of a timber advisory committee as recommended by the inter-departmental committee because I feel it would be more prudent to await the review group's examination of the structure of the Forest and Wildlife Service before doing so.
I must now refer to repeated criticisms in regard to timber supply contracts entered into by my Department with our two major pulpwood processing concerns, namely, Medite of Europe Limited at Clonmel and Finsa Forest Products Limited in Scariff. I would remind the House that, when various pulpwoodusing mills closed around the late seventies, no positive interest was shown by Irish enterprise in establishing a replacement outlet for the large volume of pulpwood involved. Such pulpwood processing outlets are essential to the development of the long term supply of sawlog for the sawmilling industry. It is normal practice, here and elsewhere, to give some contractual guarantee for a substantial part of the necessary supply in order to attract investment of the magnitude required for pulpmill development. Indeed, such supply contracts reflect both the very high level of investment involved in these mills and also the high production level required in order to establish minimum viability and service the investment.
I would remind the House that, at the time when the contract with the larger of these companies was being negotiated, there was a serious crisis in Irish forestry with regard to pulpwood. Forests were in arrears as regards thinning and temporary exports and sales of firewood helped to remedy the problem until this company began production and, incidentally, opened up a major new outlet for sawmill residues.
Forestry is one of the few areas which, generally speaking, has traditionally enjoyed the support of all parties in the House. Certain Deputies now in opposition were the Ministers with responsibility for Forestry when the House commended the establishment of the Medite mill and the first restructuring of the chipboard mill in Scariff. I was the Minister concerned when a second restructuring of the latter mill took place. It is worth recording that no Member of the House objected to the limited supply contracts then negotiated with these companies when many new jobs were created and maintained.
In so far as pulpwood utilisation is concerned, it has been the longstanding policy of successive Governments to encourage industry which would manufacture products with high added-value and good export potential, create jobs in the mills themselves as well as in ancillary harvesting and transport services and pay a fair price to the State relative to the value of the product involved. That continues to be the policy of this Government. As soon as adequate supplies of pulpwood and sawmill residues to warrant another processing industry become available, similar criteria will be used by my Department, in consultation with the IDA, in the context of recommending to Government the type of enterprise to be established, whether with native or foreign investment. If this should also involve some contractual guarantee of pulpwood supply, I would not hesitate to recommend it; and from past experience I would anticipate the continued understanding and support of the House in that regard.
Let me say clearly now that any sawmill interests seeking pulpwood supplies who can convince my Department and the IDA that a new project proposed by them is in the best national interest vis-á-vis other prospective projects will have my unhesitating support in their claim for a contractual guarantee of supply. I could not, however, at the present time give any one sawmill or group such a pulpwood supply contract which would bestow on it unfair advantage over the many other competing mills.
Contractual guarantees of sawlog supply, however, are an entirely different matter. Whereas there are only a few major pulpwood using mills, there are some 150 sawmills of varying sizes and it would be quite impractical to give guarantees to all of them, even if this were permissible from an EC standpoint. I would suggest to the House that the quota scheme for large sawlog — to which I referred earlier — is a positive, welldesigned concept for giving a degree of security of supply to those mills most likely to use it in the best national interest and which are therefore, because of their enlightened and creative managements in the spheres of production and marketing, also likely to be the most efficient and profitable. Quotas for small sawlog are much more difficult from a practical point of view and I cannot at this time undertake to introduce them. However, while making no positive commitment at this stage, I am investigating whether some limited arrangements for major users of small sawlog could be worked out.
Perhaps one of the biggest dangers facing Irish forestry and the sawmill industry lies in underselling the quality of Irish timber. There is no economic or technical reason why well-sawn, graded, dried and finished Irish sawnwood should command a lower price in the construction market than imported timber, allegedly of better quality but, in practice, sometimes found to be of dubious grades. I would earnestly urge architects and specifiers to look again at the qualities of Irish timber and discard some longstanding, unfounded prejudices about it.
On a more optimistic note I look to progressive mills in sawmilling to translate the results of heavily-funded research by my Department — both directly and through its financing of work by the IIRS — into market-penetrating quality products with increased added value, thereby generating new jobs in efficient mills and seeking out, either through their own efforts or with the co-operation of relevant State agencies wider export markets within the EEC and elsewhere. These are challenging times for us all but, if the dedication and commitment of the staff in all disciplines throughout the Forest and Wildlife Service are reflected in the timber-based industries, then the foresight of successive Governments in forestry investment will be realised handsomely and the long-awaited return on the taxpayers' investment in this vital national asset will be realised.
Before concluding, it would be remiss on my part if I let this occasion pass without drawing the attention of the House to the fact that 1985 has been declared by FAO as International Year of the Forest. The basic short term objective is to call public and political attention to the threats to the world's forests and the need to conserve forest resources. Member nations of FAO have been asked to give special recognition to the forest in 1985, including the mobilisation of people — especially youth — to participate in forest-oriented activities. The fact that FAO's decision to declare 1985 as International Year of the Forest was not finalised until very near the end of 1984 has meant that the preparation and stimulation of suitable programmes and events by many countries, including Ireland, could not be developed as speedily as they would otherwise have wished. However, my Department are currently formulating a series of events for the second half of the year and will welcome involvement by any outside agencies who may be in a position to make some contribution to the success of the venture.
I have tried to be as comprehensive as possible in dealing with the Fisheries and Forestry Votes but I appreciate that there may be matters which I have overlooked and on which Deputies may wish to be informed. As already stated, I will endeavour to deal with any such points in my reply to what I trust will be a constructive debate on two of our greatest natural resources, namely fisheries and forestry.
I now commend both Estimates to the House.
