asked the Minister for Industry, Commerce and Energy if there are plans to develop a native timber industry from the State-owned forests.

The Industrial Development Authority in consultation with the forest and wildlife service of the Department of Fisheries and Forestry are engaged on a comprehensive study of the timber processing industry with a view to identifying how the maximum return can be obtained from our timber resources. The authority expect that the survey will be completed by the end of 1978 when long term plans for the development of the sector will be formulated.

Is it true to say that there are approximately 800,000 acres under afforestation and that with the proper development of the industry, with the labour intensive input that would be involved, it could produce about 30,000 jobs?

No. I am not sure of the acreage but the processing of the timber on a large scale is not a very labour-intensive industry as the preliminary results of the IDA study have indicated. One of the most beneficial uses of our timber resources which will be coming available in the years ahead in considerably increased quantities would be to pulp it for the manufacture of paper. That is a highly capital intensive operation with the capital involved being in the region of more than £100 million while the number of jobs involved would be quite few.

Is it the IDA brief to consider the total area for the development of forestry or are their considerations confined to specific areas? Are they being asked to provide the Minister with proposals for the total area with a view to forestry development, rather like the hide being sent out untreated, and making the most out of the raw material in the various ways? In other words is there a downstreaming?

The IDA study extends first to the timber resources in the entire country and it extends to all sectors or potential sectors of the timber-processing industry, every aspect of which will be covered.

Would the Minister agree that having regard to the investment of the taxpayers' money in afforestation, the IDA might consider the establishment of a State industry in this area?

That is a separate question.

Would the Minister have any preference in respect of either State or private industry in this regard?

I have no preference one way or the other but I should be happy to see either a privately-owned industry or a State industry or a joint venture of the two or whatever is likely to work best.

Would not a State industry give additional return to the taxpayer?

There might not be any additional return.