Dáil Éireann debate -
Tuesday, 25 Jun 1996

Vol. 467 No. 4

Written Answers. - Aughrim (Wicklow) Woodfab Company.

Joe Jacob

Question:

296 Mr. Jacob asked the Minister for Agriculture, Food and Forestry if his attention has been drawn to the fact that 65 timber workers have been laid off at the Woodfab Company in Aughrim, County Wicklow; the action, if any, he proposes to take in this regard; the extent to which he considers the long-standing timber supply/price dispute between Coillte Teoranta and the Woodfab Company and the Irish Timber Council is related to these layoffs; whether he will expedite the establishment of a new timber sales regime which is reported to be currently in hand; and if he will make a statement on the matter. [13496/96]

Minister for Agriculture, Food and Forestry (Mr. Yates)

The sale of timber is a matter for Coillte Teoranta in the context of its legislative mandate, as contained in the 1988 Forestry Act. I am not, therefore, in a position to exercise a function in that regard nor would it be appropriate for me to comment on business relationships between Coillte Teoranta and any of its sawmilling customers.

The Irish sawmilling sector in general is experiencing some difficulty at present in the light of an adverse international market for pulpwood, residues, chips and sawdust. Intake of these sawmilling products from traditional users in the panel board sector has fallen which, in addition to reduced prices, is impacting adversely on sawmillers' returns.

All sawmills purchase their timber from Coillte Teoranta through either its tender system or an allocation system. The price derived from the tender process and in turn the allocation system is set by sawmills themselves. Coillte Teoranta's pricing policy is centred on all sawmills paying the same market-determined price. Coillte Teoranta intend to dispense with the allocation system with effect from next month, so that all sales will thereafter be made on a competitive basis.

The framework for the new timber sales regime was agreed between Coillte Teoranta and the Irish Timber Council in March, 1996. This will be an auction-based, market-related system which will improve transparency and avail of the opportunity offered by new technology. Discussions between the parties on the detailed implementation of the new regime are under way. I understand that steady progress is being made. I have impressed on both parties the importance which I attach to a speedy and successful conclusion to their deliberations. It is intended to have most, if not all, of the elements of the new regime in place by end-1996.