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Dáil Éireann debate -
Thursday, 5 Dec 1985

Vol. 362 No. 7

Industrial Development Bill, 1985: Second Stage (Resumed).

Question again proposed: "That the Bill be now read a second Time."

Deputy Sheehan was in possession.

I am deeply shocked at the news which has been conveyed to the House about Chevron deciding not to go ahead with their project in Bantry Bay. As a Deputy who lives close to Bantry I know only too well the vacuum that will leave in the area. This announcement has confirmed the fears which I expressed at an area roads meeting of Cork County Council in Glengarriff last Friday week when I made a plea to the bodies concerned who had appealed against the decision of Cork County Council, to withdraw their appeal from An Bord Pleanála in the interests of faith and goodwill, to let proper dialogue ensue between all parties concerned and not to inhibit in any way this valuable industry that we are looking forward to.

It is amazing to think that a few years ago an oil refinery project which was on the cards for that area was bedevilled with objections that played the issue out for two and a half years before it was decided finally, and the world scene had changed so much by that time that the project was abandoned. I am sorry that we are seeing a repetition of that now in view of the fact that Cork County Council as a planning authority had imposed the most stringent conditions on the planning permission that was issued to Chevron about four months ago. All the conditions were incorporated in the findings of the Costello Tribunal and I am sorry that the assurance given by that reputable body were not adhered to or taken up by the people concerned who object to that very valuable industry.

I realise that every citizen has a right to object to and appeal against any planning decision. This is a democratic right laid down in the Planning Acts and it gives the opportunity to every person in this country — he need not be a national — to object to any development which he sees fit to object to. I am not placing all the blame on the section who objected to this development. I know only too well how unscrupulous multinational oil companies can be. We have seen in this instance that Gulf Oil came in and established the storage depot on Whiddy Island and for years enjoyed the facility of the finest bay in the world——

They gave good employment.

——without contributing one penny to the Exchequer in taxation. There must have been a deal somewhere along the line which gave that concession. It smells as if something was in the pipeline from the beginning.

I think Chevron would have gone ahead if they had got the green light when the permission was given by the council. However, I was speaking to a member of the company about three weeks ago and he expressed grave fears and doubts as to the future development of the project. Taking all the opposition to it into consideration, if the objections were dealt with even by An Bord Pleanála, who had agreed to hold an oral hearing on 21 January, and they gave the green light to Chevron on that occasion, the objectors still had the right to appeal that decision to the High Court, and years could pass before a decision would be given. Every Minister for Industry, Trade, Commerce and Tourism must face this in his capacity in that Ministry.

It is sad for the country, and particularly for south-west Cork, that this industry is not going ahead. The Exchequer would gain to the tune of £40 million according to the agreement——

Forty pieces of silver.

——but this is very little consolation——

It is no consolation.

——to the people who were awaiting jobs from that project. We were told that about 250 jobs would be provided in the reconstruction of the project and that a permanent force of around 100 would be employed if the project got under way.

The Government have let you down badly.

I am reminding you, Deputy Lyons——

The Government and our Minister, Dick Spring, have bent over backwards on several occasions to ensure that this development got off the ground. I challenge any Fianna Fáil spokesman or Deputy across the way to get up in this House and prove that Dick Spring——

——the Minister, did not work tirelessly towards bringing this industry to fruition.

In for the liquidator again.

He did his best in getting an agreement with this international oil company. If they decided to change their minds he cannot under any circumstances influence them to change again. It is a pity that the then Taoiseach and the Minister of the party opposite when the Whiddy project was mooted at the time of the creation of the oil tank farm did not dig in and get the necessary taxation from that oil company who enjoyed 13 years of freedom without paying one penny in taxation towards the economy and enjoyed the facilities available at one of the finest bays in Ireland. Those facilities were given on a plate to an international oil company whose associates will not now honour an agreement.

There will not be any jobs from that.

That is an indication of the amount of sympathy multinationals have for Irish people. They will exploit them to the last, if possible. It is a pity that the Taoiseach, and the Minister in charge on that occasion, did not insist on them paying their share to the national cake as all companies do.

Who is in charge now? There are no jobs for Bantry.

I presume the Deputy will soon return to the provisions of the Bill.

The black hole he was talking about earlier has arrived for Bantry.

The Minister should ensure that any future deals with oil companies engaged in exploration work off our shores contain a clause obliging them to bring the oil ashore at Whiddy. A proper refinery must be built there in the near future. We need action, not false promises. As a result of the decision of Chevron the Government should give special attention to the Bantry Bay area. Serious consideration should be given to establishing a free port there. We are entitled to such treatment as a result of the serious setback we received today. We will not stand idly by like Opposition Deputies did when in Government. We must continue the fight to ensure that industries are placed in Bantry. I will be vehement in my approach to Ministers in future in seeking special treatment for that underdeveloped area.

The war has been lost.

It is ironic that I made reference this morning to the fact that Bantry and Whiddy were the only areas with proper facilities for storing crude oil. If we are to survive in south-west Cork Bantry must get priority treatment.

The Deputy should change his script.

I do not have any need to change my script and I must point out to the Deputy that I am able to stand on my own two feet. The Government must take into consideration the serious setback experienced by Bantry and its hinterland today. Special treatment is required from the Government, and future administrations for the area.

We will look after the area after the next general election.

We should not be subjected to the dismal treatment meted out to us down the years. Fianna Fáil did away with the railway system in south-west Cork in 1950 but did not give us one mile of national primary road. They sold it to the blacks in Africa and did not give us anything in return. They laid all emphasis on creating big industrial zones in Dublin, Cork, Galway and other big centres of population but had no thought for Bantry's cry for industrialisation.

Who succeeded in having the pier at Schull built?

The people of west Cork will continue the fight for industries. With my colleague, the Minister of State, Deputy Jim O'Keeffe, I will intensify my efforts to ensure that a replacement is found for Bantry.

Another promise.

I hope an industry with a high employment content will be obtained for the area. I appeal to the Ministers involved to investigate the possibility of placing an industry that will give at least 100 jobs in Bantry.

The Government cannot keep the present industries open.

There is little use in crying over split milk.

It depends on the extent of the spillage.

I guarantee the Deputy that the Coalition will tackle the problem in Bantry.

That does not say very much.

Our performance in Government has been very good. The Deputy's contribution this morning was so mediocre that it amazed me. I thought he would have made a better case for industrialisation in Cork. Charlie would need to reshuffle his Front Bench and get a dynamic approach as far as industrialisation is concerned.

There will be a major reshuffle in west Cork in the next general election.

It will take some reshuffle to shift Deputy Sheehan.

If the people of west Cork are relying on the way Deputy Lyons puts their case for more industries they will be sadly disappointed. There will be white blackbirds before there is an industrial revolution in Cork and Munster under Deputy Lyons' misguided approach.

It is important that fish processing industries are established on the west, eastern and south-eastern coasts. We should utilise our natural resources to the fullest. It is amazing to think that the herrings in brine imported from Holland are caught in Bantry Bay or Kenmare Bay. We must explore the possibility of establishing fish processing plants adjacent to our fishing ports. We must foster and develop such activity. There will not be rapid growth in industrialisation here unless we harness our natural resources and ensure that they are utilised to the fullest extent.

In the matter of mariculture and fishing, we could and should take a lesson from our northern neighbours in Iceland and the Faroes. These people depend completely on their fishing which they have made a very lucrative industry. We are only skimming the surface here as far as the development of our fisheries and mariculture is concerned. I hope that there will be an emphasis in future on industrial development along our western seaboard.

Another area that could be developed is our mineral wealth. At the turn of the century there was a very important mining industry in existence here. There were copper mines dotted all along the south-west coast and the western coastline which gave very valuable employment. Was a proper evaluation ever made of our mineral resources since the foundation of this State?

(Interruptions.)

Deputy Sheehan is going underground.

You will get industry underground as well. I need not remind you of that, a Leas-Cheann Comhairle. There is a good coal mine not too far away from you.

On the Bill, please, Deputy.

The time is right to have an intensive survey carried out of our mineral resources.

Forestry is another fact of industrialisation which has been completely forgotten. A few hundred years ago the country was completely covered in afforestation. The forests were cut down and utilised during the centuries but our climate is still conducive to good afforestation and I am amazed that a proper forestry policy has not been got off the ground. It would give valuable employment in the matter of tens of thousands of jobs for young people in planting, pruning, cutting down and manufacturing from the raw materials.

You are going into forestry now.

This is all to do with industrialisation. It relates to our natural resources and would have a terrific impact on the future of progressive industrialisation.

Food processing.

I had dealt with food processing before the Deputy came in.

He has dealt with it more than three times.

If we progress along the path outlined by me this morning, we will be progressing along the road to prosperity as far as industrialisation is concerned. Anybody who has the audacity of Deputy Lyons in accusing the Minister of doing nothing about industrialisation would certainly need to read the extracts circulated to every Deputy during the past three years from various semi-State bodies. These extracts point out in no uncertain fashion what has been done by our Ministers and that we have the courage, initiative and mettle to grasp the opportunity of putting this country back on the road to prosperity.

Does the Deputy remember what Martin Luther said?

I say to my friends across the way, if I have friends there and I think I may have ——

I do not think so. They have their eyes on your seat.

The Deputy has good friends, but he is not treating them well.

I ask them to discard the begging bowl and face up to their responsibilities. I ask them to recognise the consequences of industrial development such as experienced in south-west Cork this afternoon. We must fight the issue to the bitter end——

Well put, boy.

——and our goal will be achieved.

Deputies

Hear, hear.

If the Opposition sit down and do nothing but criticise, they will be playing into the hands of those who are trying to beat the competitiveness in Irish industry.

The previous speaker moved from complete satisfaction to utter frustration, like a pendulum, many times. I would refer to one point he made about party favouritism where the IDA are concerned. In my experience as a public representative, I have never met party favouritism there. Many an accusation I made against the IDA as regards favouritism within regions, but not party favouritism.

The Minister said that there was no point in making excuses about excessive energy prices, declining markets and competition from low wage-cost countries. That statement is simplistic from an energy point of view. The high cost of energy has left us, in many phases of our industrial development, at a severe disadvantage. The Minister said also that the development of our telecommunications services continues at full pace. That sounds very hollow to people who have not yet got an automatic telephone service. I have met industrialists almost daily who have great complaints in this regard. In the Border town of Clones there are a few very extensive industries, one whose product is completely export-orientated, and it is a very valuable industry, with fairly high technology. The greatest problems that beset these people concern the telephone service.

The Minister also mentioned the achievement in eliminating bottlenecks and in the making of further substantial plans for our road network. While we must admit that a great deal of money is being spent on our national primary and secondary routes which are fairly heavily funded from the EC, to industrialise the area, as the previous speaker advocated, more money will have to be provided, not alone for these routes but for the county roads and main roads. Further the Minister talked about creating and maintaining the maximum number of jobs, maximising value added in industry and maintaining the wealth created for further employment. While good strides have been made in value-added industry, much more could be done. There are many areas which need to be closely examined. Some years ago a survey was done for the eighties, but we are not meeting the targets. In my area a number of entrepreneurs have made some very successful ventures into value added, as have the co-ops, but there must be greater urgency. The Minister mentioned the necessity to promote the rapid development of our natural resource-based industry. It is regrettable that our forests are not used to the best advantage. Almost all our tanneries have been closed and hides are sent elsewhere for processing.

In my area there is a problem of imports of concrete products from across the Border. While we are in favour of free trade and integration, the serious disadvantages of the manufacturers in my area must be emphasised. Within the EC there should not be such serious inequities. Grogan Associates published a report in September 1985 on the import of concrete and quarry products from Northern Ireland. In the five counties along the Border, 35 per cent of stone, gravel and sand is imported, while 31 per cent of concrete blocks and ready mix concrete is also imported. In one year 35,000 tonnes of precast concrete were imported. We are asking the Department to consider giving assistance to our local industries on a similar basis to the assistance being given across the Border.

The problems which beset our industries must be recognised. Twenty per cent of the market for paving slabs, coping, cattle slabs, floor units, flags, kerbs, bollards, drinking troughs and lintels is being filled by imports. Between 9,000 and 11,000 tonnes of concrete piping is being imported per year which represents 10 per cent of the total market requirement. People north of the Border have a great advantage in that their electricity prices are 25-40 per cent lower than ours. Cement prices are also lower. The declared value of concrete blocks imported in 1984 was £760,000, representing 96,000 tonnes. Imports of tarmacadam for the first five months of 1985 amounted to 13,000 tonnes. The market for roof tiles is filled by imports to the extent of 90 per cent.

It is time to consider the question of unfair competition. Our industries in these counties cannot continue to operate at such a disadvantage. Concrete product manufacturing plants and batching plants are now being set up across the Border in the same way as petrol pumps were set up some years ago, specifically to cater for cross-Border trade. The manufacture of concrete products in areas just south of the Border will come to an end. It is estimated that 400 or 500 jobs have already been lost. The people in the North have been grant-aided over the past four years to the tune of £76 million, but there has been no grant-aid here. In the North they have capital grants of up to 30 per cent on new buildings, machinery and equipment.

The Minister must consider this question very carefully. We are denying our own people the opportunity to operate successfully in business. They spent a lot of money setting up a structure to cater for a market but, through no fault of their own, they have become completely uncompetitive because they are not getting the incentives which are being given north of the Border. If such incentives were paid, the outlay would be more than recouped by the additional jobs created.

The Minister mentioned our natural resources. If we are serious in our approach to industry we will have to consider all our natural resources including turbary, afforestation and quarries. There is no point in trying to attract foreign industrialists while we leave our resources untapped. The Minister mentioned the national linkage programme as being one of the most important incentives to job creation. I agree that it is very important and I pay tribute to CTT, IIRS and other bodies who are doing so much for the development of the economy.

Previous speakers mentioned the timber industry. The forest product of the area I represent is exported and then imported as pallets, fencing posts, fencing, box timber, etc. A report on the timber industry indicated the potential for development and the types of industry which should be set up. It is time the IDA looked at the ordinary things like fencing posts and pallets rather than the high technology aspect of the timber industry. There is a massive market for these ordinary products. In my constituency there is only one timber plant which has the necessary debarking equipment. The IDA should look at the possibility of grant-aiding this industry as many people have asked me if there is any hope of obtaining forest timber to make pallets for fencing so that they could go into business even in a small way. At present such timber is drawn from long distances from their area.

I mentioned tanneries earlier and it is incredible that the IDA and the Department have not conducted an in-depth examination in this regard. In October I asked the Taoiseach a question about the percentage of bovine hides exported unprocessed in 1983 and the tonnage and value of leather imported. The reply was that total slaughterings of farm animals in 1983 was estimated at 1,260,000. Exports of unprocessed bovine hides in 1983 amounted to 29,652 tonnes and the number of hides was in the region of 1,096,000 or 87 per cent of estimated slaughterings. In October 1983 I tabled a question regarding the steps which the Minister was taking to have all bovine hides processed in this country. The reply was that competitiveness in the market place for leather was the critical determining factor of the extent to which native bovine animal hides could be processed here on a commercially viable basis.

However, if other countries can process this on a commercially viable basis we should be able to do the same as we have the product. In 1973, when I was elected to the Dáil, they were fighting tooth and nail in my constituency to retain a tannery in Ballybay. We sought assistance at that time from the Government to no avail. The tannery closed, the second in the county to do so, at a time when there was a meat plant in the county which had a very high slaughtering capacity. They were exporting all their hides which entitled them to an export subsidy. The Minister talked about development resources, job creation and employment potential but that tannery was allowed to close and there is no sign of any attempt to revive it.

At present there is competition from across the Border by the Northern Ireland Industrial Development Board although they were always behind the IDA as far as the development of industry is concerned. A factory in Clones moved over the Border with nearly all their workers because they were offered very attractive incentives. Reading the NESC report the thinking seems to be that the designated status areas could be substantially changed. I agree with some of the recommendations contained in the report but there is cause for concern in many areas. I am afraid that areas which had been getting higher grant aid could lose their high designation status, particularly in the Border area.

Another statistic in the report shows the problems in relation to creating jobs. It relates to the development of agriculture and I notice that in my own area employment in agriculture has dropped from 44.7 to 22.8. Despite all the efforts that have been made by way of agricultural grants, development and so on, we cannot retain agricultural workers on the land and that is why we will have to make a greater effort in the agriculture based industries.

I mentioned afforestation earlier in relation to small industries. A few weeks ago I was in a builder's providers and there was a large shed there containing chipboard of various grades but I noticed that none was produced in this country. I asked a question in the Dáil regarding the tonnage and value of chipboard imported in 1984 and the tonnage and value of chipboard manufactured in this country during the same period. The Taoiseach replied that the information available from external trade statistics related to reconstituted wood and that there was a statement attached. He also said that information on the manufacture of that commodity was not available for reasons of confidentiality. He went on to state that the quantity of reconstituted wood in metric tonnes made from wood wool, wood flour, wood shavings, saw dust or other wood waste amounted to 67,771 to the value of £16,745. It made me wonder why we do not do more in this regard, especially when we realise that other countries are exporting this product in bale form to this country.

After discussions with people in my constituency I tabled questions regarding fire clay bricks. Seemingly, there are large deposits in various areas of that clay which could be used for the manufacture of bricks, fire clay and ceramics but no effort is being made to produce it. There is even a problem in finding out information about it.

Debate adjourned.
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