asked the Minister for Lands the system which his Department operates concerning sales of timber to commercial concerns; and if he intends to change and streamline the system.
18.
Ceisteanna—Questions. Oral Answers. - Timber Sales.
17.
asked the Minister for Lands if he will re-examine the existing conditions laid down by his Department regarding the sale of timber and prunings with a view to facilitating firms which are now experiencing grave difficulties and which must rely on the Forestry Division for their supplies.
(Cavan): With the permission of the Ceann Comhairle, I propose to take Questions Nos. 17 and 18 together.
I am not aware of difficulties in securing supplies of timber and I am assured that there are ample supplies available.
The bulk of timber produced by the Forest and Wildlife Service of my Department is sold standing by sealed tender. In addition small quantities, for local consumption, are sold at fixed prices at most forests.
I have recently visited some of the factories engaged in timber processing and have received deputations from various interests concerned with the timber business to discuss the problems and difficulties being encountered by the trade. I am having the whole situation examined on the basis of the representations made to me.
I was disturbed when the Minister said he was not aware of these things but I was glad to see he had been in contact with the people concerned. Does the Minister propose to change the system whereby firms must pay in advance for their timber supplies or prunings and are expected to give credit to the people they are supplying? Does the Minister not feel that, since the international price of timber has dropped by 50 per cent this year, this should have been matched here? Does the Minister feel that his Department, who control 93 per cent of the forests, are abusing the monopoly they have and that the tardiness with which the officials counted the fallen trees and made timber available earlier in the year after the storm has resulted in an artificially high price for timber here which would not be matched by prices in the world?
(Cavan): It is not correct to say that people must pay in advance. They pay on removal from the forests, which is cash in exchange for delivery. The timber is sold by tender and the highest tender almost invariably gets the timber. By that I mean to convey that there is a reasonable reserve fixed and it is almost unheard of for timber not to be sold to the highest tenderer. Therefore I do not concede that the Department of Lands are obtaining more than normal market value for the timber.
I visited the forests and a number of factories recently and I discussed the problems with interests concerned in the factories. I have also received deputations. I am having the whole matter looked into. I inherited the present system which has been in operation since we started to sell timber.
What period of time is involved between advertising the timber for sale, the submission and acceptance of tenders? What period of time is involved from the time the Department start to sell the timber until the person can accept delivery?
(Cavan): I regret I have not that information but I could give the Deputy some indication of the position by letter if that would suit.
I am grateful to the Minister. Would the Minister agree that, in a position where the world price falls suddenly, the length the deal takes is very important for a business concern?
I should like to impress on the Minister that I am not castigating anybody and that my interest is to ensure that jobs which are in jeopardy are not lost. Has the Minister taken note of the fact that the present system of sealed or blind tendering which forces firms to work in the dark is not helpful to them? Would the Minister endeavour to change that system?
(Cavan): I am looking into this matter. The Deputy will realise however that the Department deals with a very limited number of customers and that makes it difficult to come to a decision or to change the system. I have discussed this fully. I am sure the people who called were satisfied they got a full hearing. I am having this looked into as a matter of urgency.
With reference to Deputy Wilson's supplementary, I agree it would be unreasonable that there should be a long time-lag between the date the tender is submitted and the date it is accepted.