asked the Minister for Industry, Commerce and Energy the present capacity of timber mills in this country, the annual imports in this regard, and in view of the recent National Economic and Social Council report on Irish Forestry Policy if there are any proposals to create more downstream processing capacity for Irish timber.
Ceisteanna—Questions. Oral Answers. - Timber Industry.
13.
I am informed by the Industrial Development Authority that a study of the timber-processing industry which was conducted by the Authority in conjunction with the Forest and Wildlife Service of the Department of Fisheries and Forestry has been completed. Figures established by the study would suggest that current total timber processing capacity in Ireland, including sawmilling, wood-based panel production and pulp manufacture is of the order of 605,000 cubic metres.
Figures published by the CSO indicate that in 1978, the value of imports into this country of wood-based products was: Wood and wood products (excl. furniture), £68.6 million; Pulp and waste paper, £5.7 million; Paper, paperboard and articles of paper pulp, paper or paperboard, £96.2 million.
Arising from a consideration of the study of the timber industry, the IDA already agreed a development policy and grant criteria for the sawmilling sector of the timber processing industry and, to date, has approved grant assistance for projects with an investment in fixed assets amounting to approximately £3.0 million. These projects are expected to generate 256 jobs when in full production. The pulpwood products sector is at present being considered by the IDA with a view to determining how the maximum return can be obtained from our timber resources. An extensive programme has been undertaken by the Authority in the USA and Europe with the aim of securing new pulpwood-using projects for this country.
Would the Minister not agree that the main finding of this report is that on the basis of existing levels of trees already planted and coming to maturity, a major bottleneck in the processing of the wood will arise in the near future and unless action is taken to establish adequate processing we will be exporting raw timber for other people to make profits out of?
There will be an increase in a number of years' time in the amount of thinnings and light timber available. The IDA are extremely anxious, as am I, to ensure that the maximum amount of that is used here. Unfortunately, at the very time when we are coming into a situation in which there will be an increase in our resources of this type of timber the world market has taken an appalling downturn. Plants of the type that process this kind of timber have closed in this country, indeed closed in countries all over Europe and in other parts of the world also. The market remains at a very low level at present in terms of price. The economies of processing this sort of timber are very doubtful while the price level remains as it is. Therefore, the IDA in particular are looking towards the pulpwood side of it to see what can be done in that respect because, as the House is aware, processing into board of various kinds has been very unpromising over the last couple of years.
Given that the market situation is not good at present, would the Minister not agree that the prospects for the market are considerably better?
I am afraid I cannot agree without reservations on that. The short-term outlook, and indeed the medium-term outlook, are not terribly good. This type of industry is very energy-intensive. This is creating problems for all countries, not least ours, where unfortunately such a large proportion of our energy is based on oil.
Did the Minister not say three minutes or so ago, in reply to Question No. 8, that the industrial development consortium, through one of its sub-groups, was carrying out a study of the timber-processing industry?
I said a study was being carried out and that the sub-group was examining it and seeing how it could implement it.
How is it then that the Minister is able to reply to Question No. 13, and to three supplementary questions, without once mentioning this same Industrial Development Consortium?
The Deputy has that on the brain.
——this Kildare Street spook——
If it will make the Deputy happy, we will make him a member of it.
How is it possible to contend that this consortium is doing serious work when, in regard to a specific question on timber-processing, it does not even rate a mention?