asked the Minister for Industry, Trade, Commerce and Tourism the number of people currently employed on the paper conversion operation at Clondalkin Paper Mills, Dublin.
Ceisteanna—Questions. Oral Answers. - Clondalkin (Dublin) Paper Mills.
2.
I understand that 22 people are currently employed on the paper conversion operation at Clondalkin Paper Mills.
Is the Minister aware that in a reply to me on 29 May last he indicated that 35 persons would be employed there within three months? This is now the end of October and 22 persons are employed. Could he indicate when, as a result of this paper conversion process, he will be satisfied that the company is viable and give them permission to move into manufacturing?
The paper conversion operation run by Friedman McCormack International Limited was set up as part of the agreement signed between the IDA and FMI in November 1983. Essentially the agreement provides for the lease of the appropriate portion of the mill premises for the purposes of a paper conversion operation. That is the operation currently employing 22 people. The granting of an option to FMI on purchase of the mill's assets for the purposes of a paper manufacturing operation is subject to compliance with the viability criteria specified by the IDA. This matter is currently being considered by the IDA but they have not yet reached a conclusion on it. It is important to note that originally this enterprise was unprofitable and the company which owns the mill decided to close it. This Government decided to help out in a substantial way but we can only go forward with the development of a paper manufacturing operation on a viable basis. Until the IDA are satisfied that they have a viable proposition they will not be in a position to sanction further development.
Would the Minister not agree that since those first negotiations took place the viability of the paper making project has substantially increased by reason of very substantial increases in the price of manufactured paper? Would the Minister agree that the premises at Clondalkin represent a substantial investment of State money, £1 million or possibly more, and that it is essential from the point of view of the taxpayer that this very valuable asset be exploited to the benefit of taxpayers as a matter of urgency?
I recognise that there has been a valuable investment by the State in this property. I am pleased to note that the market conditions for paper have improved and that factor will be taken into account by the IDA. We have a responsibility not to make a mess of this and we must be sure that the project to go ahead is viable. It will be examined in that context by the IDA. This is the only long-term way to secure employment. Any course of action which did not satisfy the acid test of economic viability would be unwise for the Government and the IDA.
We do not contest what the Minister is saying but I am anxious to know if the Minister recognises the need to impress upon the IDA the urgency of completing whatever study they are making in view of the fact that the market prospects have improved so rapidly. These prospects may decline within two or three years and if the company are to be allowed to manufacture this must be done now. Does the Minister recognise the urgency of the case?
The IDA are in negotiation with FMI on this matter and I would hope that these negotiations would be completed sooner rather than later. There will be no undue delay on the part of the IDA in reaching a conclusion on this question.
Is the Minister in constant contact?
Yes.
Can the Minister assure the House that the premises and plant have been maintained and are capable in the short-term of being put into paper production? It is important that the people should know that the State's very substantail investment has been preserved.
We have given a commitment to refurbish the non-leased assets of the company as soon as the IDA are satisfied on viability. There will be no delay in carrying out our obligations when we arrive at that position.