Dáil Éireann debate -
Wednesday, 28 Jan 1998

Vol. 486 No. 1

Written Answers. - Sawmilling Industry.

Michael Finucane

Question:

188 Mr. Finucane asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the fact that the proposal for Coillte Teoranta to take over a large sawmilling activity is going to create unemployment and financial difficulties for the sawmilling industry in view of the fact that Coillte Teoranta has almost a monopoly at present in supplying raw timber to the sawmilling industry; if her attention has further been drawn to the fact that this will give Coillte Teoranta unfair competitive advantage in its proposed sawmilling activities; and if she will make a statement on the matter. [2019/98]

Tánaiste and Minister for Enterprise, Trade and Employment (Miss Harney):

On 5 January 1998, I received a notification under the Mergers and Take-overs (Control) Acts, 1978 to 1996 of a proposal whereby Coillte Teoranta intend to acquire a majority of the issued share capital of Balcas Limited, a sawmilling company incorporated in Northern Ireland. Under the Mergers Acts I can refer any merger proposal notified to me to the Competition Authority for investigation and report. I have decided to exercise this option in the present case.

The purpose of referring the proposal to the Authority is to establish whether, in its opinion, the proposed merger would be likely to prevent or restrict competition, or restrain trade in any goods or services, and would be likely to operate against the common good. In assessing the likely effect of the proposal on the common good the authority can have regard to such issues as continuity of supplies and services, level of employment, access to markets, employees, consumers and so forth.

It is not appropriate for me to comment while a proposal is under investigation by the Competition Authority. I will make my decision in the matter when I have received the authority's report.