Vol. 474 No. 3
40 Mr. Sargent asked the Minister for Enterprise and Employment his views on whether the paper recycling industry needs an indigenous paper mill as dependence on export of post-consumer paper is so volatile as to be uneconomic unless a mill is available in Ireland or Government credit is given to support the industry when the international paper price drops. [2886/97]
There is one paper recycling facility in Dublin — the Smurfit Paper Mill — which is engaged in the conversion of a particular type of used paper, largely used corrugated cases, to produce a paper which is reused in the manufacture of new corrugated cases. I understand from Forbairt that in 1995 Smurfits examined the feasibility of establishing a further recycling plant but that, for commercial reasons, they have postponed a decision in this matter.
I understand from Forbairt that there are certain major obstacles to the establishment of paper recycling facilities. First, each individual end product requires its own mill. For example, a mill that produces brown paper lining for corrugated cases cannot produce paper suitable for writing, envelopes, etc. Second, the cost of establishing a mill is extremely high, being in the region of £80 million. For that size of investment, companies require a level of sales that implies substantial exports. The pulp, paper and board industries are subject to cyclical price fluctuations worldwide.
Grant assistance is available from Forbairt for projects where the collected recycled material is used to produce products in a traded sector, which are commercially viable. Forbairt's feasibility study grant programme provides support to investigate market opportunities for recycled products. Forbairt have advised that they have not received any recent proposals for such projects.
