asked the Minister for Energy if he will comment on the success or otherwise of the auction of mature timber introduced by this Government during 1987; and if he will indicate the number of companies from the Six Counties which were successful.
33.
Written Answers. - Timber Disposal.
27.
asked the Minister for Energy if he has had any consultation with the sawmilling industry about the auctioning of mature timber; and if he will make a statement on the matter.
49.
asked the Minister for Energy if he has examined the merits of the auction system over the tendering regulations operated by his Department for a number of years; and if he will make a statement on the matter.
I propose to take Questions Nos. 27, 33 and 49 together.
The Forest Service of my Department has ongoing consultations with the sawmilling industry concerning matters of mutual interest. The decision to dispose of timber from State forests by way of auction sales, on an experimental basis and in part substitution for tender sales, was taken following a specific recommendation of the interdepartmental committee on systems for disposal of State-owned timber which reported in October 1984. In the course of its deliberations the committee consulted fully with the Irish Timber Council, the umbrella organisation of the Irish sawmilling industry, who themselves in fact recommended to the committee that auction sales be considered as a means of diversifying existing sales systems.
The merits of the auction system over the tender system have been fully examined. However, on this point I must stress that it was never intended to replace existing sales methods entirely by auction sales, but rather to diversify the system to the mutual advantage of the State and the industry.
The first national auction was held in Dublin in July 1985 and was followed by a regional auction in Kilkenny in January 1987. A second national auction was held in Dublin in September 1987. On each occasion the industry has expressed satisfaction with auctions as an alternative method of sale and it is proposed to hold further auctions in 1988.
With specific reference to the auction held in Dublin on 17 September 1987, it was considered a success from both the point of view of the Forest Service and that of the sawmill industry. Total sales to the value of £1.45 million were realised. I am satisfied that it would not be in the commercial interest of the Forest Service to disclose the information in respect of sales to Northern Ireland.