Austin Deasy
Question:9 Mr. Deasy asked the Minister for Industry and Commerce if any progress has been made in recent months to establish a bovine tannery industry in this country; and if he will make a statement on the matter.
Ceisteanna—Questions Oral Answers. - Bovine Tannery.
The negotiation of new industrial projects is a matter for the day to day activity of the Industrial Development Authority. However, I am informed that discussions are ongoing between the IDA and a number of parties for the establishment of a bovine tannery in the State.
As these negotiations are ongoing and particularly sensitive at present, it would be inappropriate for me to comment in any greater detail for the moment. Nevertheless, I am hopeful that there will be positive developments on this front in the foreseeable future.
I do not know if the Minister is aware, but his Minister of State told us in the House four months ago in an Adjournment debate that the announcement of two such projects was imminent. The Minister in his reply has merely referred to one project and I would appreciate if he would give a little more detail as to whether there is one or two projects involved.
As I said in my reply, discussions are on-going between the IDA and a number of parties for the establishment of a bovine tannery in the State. There are two parties involved in these discussions at the moment.
Would the Minister not agree that the IDA's performance in this area has been dismal? We export the vast majority of hides and import vast quantities of very costly leather goods.
I do not think that is necessarily the IDA's fault. For some time the IDA have identified quite clearly the possibility of a bovine tannery here and have been trying to encourage people in that business to establish such a plant. I understand from them that they are at a fairly advanced stage of negotiation at present with at least one of the two parties whom I mentioned and it would obviously be my hope that these discussions would come to fruition quickly.
Is the Minister aware that ten years ago there were 1,400 people employed in the tannery industry whereas today there are fewer than 100 people employed there? Would the Minister not agree that that is a dismal performance?
That has been the position in many industries where technology has passed them by; but in this case, provided we get a modern high technology plant, it will be possible to reestablish this form of industry. I might add that there is not the remotest possibility of the kind of numbers the Deputy mentions ever being employed again in the industry. The numbers employed will be quite small.
Surely on the manufacturing front, if you actually got the tannery off the ground, that is where the real jobs could be provided. Thousands rather than hundreds could be employed.
As a result of various studies which have been carried out, the IDA have concluded that it would be possible to tan up to 15,000 hides per week in this country, with a total fixed asset investment of up to £15 million and the creation of between 100 and 150 jobs.
Would the Minister agree that the demise of the tanning industry was due mainly to the fact that tanners found it more lucrative to buy hides and sell them on the international market, thereby closing tanneries in this country? I was involved in the tannery industry at one time and realise that that was the case.
The hides are being exported. Obviously, one would prefer to see them processed and value-added here rather than see them exported in their raw and unprocessed state.