Vol. 415 No. 1
33 Tomás Mac Giolla asked the Minister for Energy if, following the decision of a Swedish industrial group (details supplied) to pull out of a planned joint venture with Coillte Teoranta to build a £150 million pulp plant, he has any plans to encourage an alternative project in this area; and if he will make a statement on the matter.
254 Mr. Creed asked the Minister for Energy his views on whether, in light of the increased afforestation programme, both privately and by Coillte Teoranta, there is adequate raw material available to merit the establishment of a new wood pulp plant; and if he will make a statement on the matter.
I propose to take Questions Nos. 33 and 254 together.
Although the proposed joint venture to which Deputy Mac Giolla refers is not now proceeding, my policy remains firmly geared towards the establishment of another pulpmill in this country. I have no doubt but that the increasing availability of timber supplies merits the establishment of a new wood pulp plant. The increased afforestation programme will of course, ensure the continued availability of raw material supplies for such a development and for further expansion of the wood processing sector in due course.
The promotion of such a project is primarily a matter for Coillte Teoranta, in liaison with the industrial development agencies. Coillte Teoranta and the IDA have maintained contact with all of the major companies in the industry internationally with the aim of developing early proposals for a new pulp mill which will best meet the growing raw material output of our forests.
May I ask the Minister the reason a public announcement was made about this project in September 1990 — that this would be a £150 million project and involve 1,000 jobs — given that within two months the project collapsed? Is it not a fact that no agreement was made in September 1990, when this announcement was made, and the Stora project never got off the ground? It is obvious now that there is nothing there to replace it but is it not a fact that at the time Stora pulled out another project went ahead at Magherafelt in Derry involving a Finnish company? Is the Minister aware of this and can he say if Coillte Teoranta made any approaches to that company?
The Deputy's assertion is not correct. At the time a statement was issued in regard to the intentions of the Stora Company, the proposal contained two parts, one was an afforestation programme and the other was to proceed subsequently with the construction of a wood pulp mill plant in this country. That was the Stora intention at that time, it was necessary to make the announcement in regard to the forestry aspect of it and the Department's position was that it would be conditional on the pulp mill proceeding subsequently. Because of international trading conditions and matters which affected the Stora company's international trading position, the company's management decided not to proceed with the construction of the pulp mill industry here. That is why the project did not go ahead. I made that clear in the House on previous occasions and in public statements so there should not be any difficulty about it.
I am fully aware of the proposed development in Derry referred to by Deputy Mac Giolla. My assessment of timber supply over the next few years convinces me that another pulp mill will be required in this part of the country. Accordingly, it is appropriate that we should now be in the process of taking the necessary preparatory steps to ensure that such a development takes place. As I indicated to the Deputy, the Coillte management and the industrial development agencies are carrying out extensive inquiries in the marketplace to seek to identify a company who are interested in investing here. These discussions are ongoing and when there is anything to report to the House or the public I will be pleased to do so.
A brief question from Deputy Mac Giolla.
Is it not a fact that we are already producing pulpwood beyond even the capacity of this pulp mill to use? Does this mean that the jobs proposals in the Programme for Economic and Social Progress agreement will not now be implemented for 1992 and 1993?
The Deputy knows the steps being taken by the IDA and the State quick timber company, Coillte, to seek to attract an investor here to construct a wood pulp mill plant. I assure him that every effort is being made to make rapid progress in that matter. Obviously, if another party are involved, we cannot force them into making a final decision. This is a very big investment which will have to be carefully examined before any final decisions are made in regard to it.
I am calling Question No. 34.
What about jobs?
I do not know why Deputy Mac Giolla is so pessimistic.
Question No. 34 has been called.
Deputy Mac Giolla is always knocking something, he never has anything constructive to say. I would not like to see him in charge of anything.
