asked the Minister for Industry, Commerce and Energy if he is aware of the withdrawal of Cement-Roadstone Ltd. from the takeover negotiations for Munster Chipboard Ltd. and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Munster Chipboard Ltd. Takeover.
17.
I am aware of the withdrawal of the company mentioned from negotiations for the take-over of Munster Chipboard Ltd. Since then the IDA, in consultation with Government Departments concerned and in co-operation with the receiver, have made contact with a number of industrialists operating in the timber processing sector with a view to interesting them in becoming involved in the chipboard industry. No firm proposals have emerged, so far, from these discussions and the prospects do not appear to be good.
Is the Minister aware of the categorical assurances given to a deputation in respect of the speedy re-opening of this factory? Is the Minister further aware that he has at his disposal two consultants' reports—one a private consultant and the other an NESC report—pointing out the medium and long-term potential of this industry? Is the Minister also aware that there is need to have continuing processing for the thinnings of our forestries; and, in those circumstances, would he consider giving priority to the re-opening of this factory?
As the Deputy is probably aware, as a result of discussions I had and the IDA subsequently had with a large, private Irish manufacturing company, they had signified their agreement in principle to taking over the firm in question. Unfortunately, the building plant in question was subjected to continuous picketing by a small group of workers over a long period. It was not possible for the receiver to get those pickets withdrawn at the time when I had reached agreement with the company in question to take over the firm as a going concern. When, finally, the pickets were withdrawn the economics of the operation had changed considerably, because in the meantime very significant increases in oil prices had taken place. At that stage the company felt it was not in their commercial interest to go ahead with the proposal and, since there is no binding contract, there is nothing I can do in the matter.
I cannot accept that the short period involved, in which period a price increase occurred in oil, could be made a scapegoat in this affair. Neither do I accept that picketing, if ended, could be made a scapegoat. Is the Minister aware that it was a cosmetic exercise only on the part of the Government to have Cement-Roadstone come in in the short-term to take the hardness out of the closing? Would the Minister now make a further statement on the future of this factory in the light of his reply to supplementary questions on Question No. 13, when he was pessimistic about the future of the factory? Let us come clean on this. Can we see Munster Chipboard Ltd. re-opening as a timber processing factory or not?
I said in the reply, and I repeat, that the prospects do not appear to be good. Unfortunately, that is the situation and we had better face up to it.
What alternative industry has the Minister in mind to replace this one?
I am not certain that there is an alternative of exactly the same type but there has been considerable industrial expansion in Waterford over the past 12 months and the indications are that it will continue for some time to come.
Is the Minister aware that the unemployment position in Waterford since this Government came into office has been changed only by a meagre 100 people working? Is the Minister further aware that, if industrial employment is not given in Waterford, its standing as a major city is in jeopardy?
There has been considerable industrial development over the past two years in Waterford and the indications are that it will continue to move in that direction.