asked the Minister for Energy if he has considered the 21st Report of the Dáil Committee on Public Expenditure and in particular that committee's conclusions and recommendations on the long-term supply contracts entered into with pulpwood processors; if he has satisfied himself that these contracts provide adequately for price reviews; if they adversely affect the market for pulpwood; and if he will make a statement on the matter.
Written Answers. - 21st Report of Committee on Public Expenditure.
60.
I have considered the 21st Report of the Dáil Committee on Public Expenditure. The contracts in question were negotiated to provide an outlet for the increasing volumes of thinnings arising from forest plantations, following the closure of the country's four main pulpwood processors. Because of the large investments involved, the location of these plants in Ireland could not have been secured without longterm guaranteed supply arrangements. The confidentiality of contractual arrangements, particularly on price, is standard practice in the State's commercial transactions particularly in situations where competing interests exist. It would appear that the price review provisions in these contracts represent the best deal which was achievable at the time they were negotiated. I will be endeavouring to make the best possible use of these provisions in order to maximise the return from the sale of pulpwood to the two companies involved but I must have regard to all relevant factors involved.