I should like to express my appreciation to the Chair and the officials in his office for giving me the facility to raise the situation with regard to the Clondalkin Paper Mills on the Adjournment. Briefly, I should like to recall the history of this mill, the last fine paper mill in Ireland. The operations of the mill were crippled as a result of high energy costs and the inability of the firm to compete in Europe where energy costs of paper mills were heavily subsidised. However, the prospects for the mill have radically changed as a result of the Kinsale gas situation and I understand the pipeline passes close to the mill. The Fianna Fáil Government gave an undertaking to have the mill open by 9 June last. That did not prove possible but that Government carried on negotiations. They brought the matter close to completion, so much so that all necessary formalities for a takeover by the State were agreed by all parties. At the last minute a legal technicality held the matter up. I understand provision has been made for acquisition in the Estimates. The Minister and the new Government are faced with the critical and vital decision which must be made now on whether they will adopt an arrangement which was negotiated through to a conclusion by the previous Government.
The time for decision is now. This is the last opportunity the Government will have to preserve a paper mill for posterity. The liquidator of that company has indicated in an affidavit to the court that very shortly he will break up the equipment and machinery of that mill, which goes back so many years, and sell it off to an American firm. In my view it will be nothing short of a national tragedy if that is allowed to happen. If a decision is not made affirmatively and quickly, the situation will go by default. The machinery will be sold off and we will have lost the opportunity forever of having a paper making capacity. We must all know and concede that, once it goes, the cost of setting it up anew will not be met and the country will be deprived of this vital asset.
Our consumption of paper is enormous. We see the consumption of paper in this House. We know that the consumption of paper by Government, semi-Government and local government sources would be sufficient to keep the mill going at full tilt. We spend large sums of money through the IDA and so on in creating new jobs. We have seen the enormous costs of creating new jobs and setting up the industries. Why do we not spend a far lesser sum to preserve this industry and to preserve those jobs, rather than spending much larger sums on creating new ones?
We are often told — and it has been pointed out by the Taoiseach on many occasions — that things are very difficult now with the world recession and so on but that in another year or two there will be an upturn and then we will have good times to look forward to. I want to ask this question. If we allow vital, key and essential industries like Clondalkin Paper Mills and others to go under and be lost, what will happen when the upturn comes? These industries will be gone past the point where they can be reclaimed. There will be no advantage in having the upturn at that stage. When this last remaining mill has gone it will be far too late.
The production of paper is a highly skilled operation. It requires great training and skill acquired over generations. The workers of Clondalkin have acquired those skills through the generations. They are anxious, willing and determined to carry on their operation and to preserve their jobs. They are so willing that they have indicated that they are prepared to go to jail rather than obey a court injunction to evacuate the mill. That gives some indication of their dedication to the preservation of their jobs and the mill.
As I have already indicated, it is essential that this matter be faced up to now. If nothing is done now that does not mean we can make a decision on this later. We cannot. The liquidator has sought an injunction from the court. He has indicated that he is negotiating with an American firm. Therefore, the whole setup in the factory will collapse within days unless the Government make the decision.
Before the last election the Labour Party gave a commitment to the workers in Clondalkin that they would do their utmost to ensure that the mill would continue in operation. I understand the Fine Gael Party also gave an undertaking and commitment to the workers in Clondalkin that they would honour any commitment entered into by the previous Government.
