Vol. 426 No. 7
14 Miss Quill asked the Minister for Agriculture, Food and Forestry the effects on the timber industry of the recent currency fluctuations and the decline in the value of sterling; and if he will make a statement on the short term and long term prospects for this industry.
The effects on the timber industry of the recent currency fluctuations, particularly the decline in the value of sterling, have been severe. Export markets amounting to nearly £40 million, almost exclusively in the UK, were under serious threat and the domestic market was also experiencing pressure from timber products sourced primarily from Scandanavia.
These difficulties were fully appreciated by my Department and a concerted approach, in full consultation with the Irish Timber Council, was made for special assistance from the Market Development Fund. The fund allocated a total of £2.7 million for the timber sector and, of course, the 10 per cent devaluation of the Irish Pound will also have improved the situation significantly.
I am convinced that the prospects for the industry are good. To fulfil its potential, the sector will have to develop a more export-orientated approach which will involve a certain element of restructuring in order that companies are of sufficient scale to compete at the international level.
