andMr. White asked the Minister for Fisheries and Forestry the plans, if any, he has to provide increased capacity in the timber processing industry to cope with the increased output of State forests.

A study of the timber industry has been carried out by the Industrial Development Authority in co-operation with my Department. Since the study was completed the Industrial Development Authority have approved 27 projects, with a job potential of 463, in the sawmilling sector.

The study of the pulpwood using sector has also been completed and the Industrial Development Authority, in consultation with my Department, have been examining the market prospects for a selected group of products. In view, however, of current difficulties affecting these industries a final selection is not possible at this stage.

Does the Minister agree that there is a serious undercapacity in the timber processing industry?

No. We are now in a position to process all the mature sawn off timber available. We even have requests that we cannot fulfil from people who are anxious to become involved, so I do not think there is any undercapacity.

Surely there is a surplus of forest thinnings which cannot be utilised at present because of lack of processing facilities.

There is a surplus in the thinnings end. Other countries are experiencing the same difficulties with regard to their pulpwood. I am afraid it is not something we can solve overnight. It is engaging our attention.

Are there any plans to set up a chemical pulp mill here?

The IDA are having discussions with companies from different countries in the hope that a pulp mill may be set up here. We cannot give any details of that as there is nothing very definite yet.

With your permission, I propose to raise on the adjournment of the Dáil the adequacy of the arrangements being made by the health boards to meet the immediate financial needs of Northern Ireland pensioners resident in the Republic, whose pensions are not being paid because of an industrial dispute in the Northern Ireland banks.

I will communicate with Deputy Bruton during the afternoon.

18.

andMr. White asked the Minister for Fisheries and Forestry the efforts being made to sell our excess wood-pulp abroad in view of the lack of capacity available in the Irish timber processing industry.

Pending the development of outlets on the home market for increasing supplies of pulpwood which are becoming available from State forests, my Department have entered into an arrangement with an Irish company who are proposing to export a quantity of the excess material. This will enable my Department to continue to have forests thinned so that future production of good sawlog timber will be achieved.

The arrangement is, of course, short term. The Industrial Development Authority, in close consultation with my Department, are continuing their efforts to attract investment in new processing mills to utilise pulpwood at home.

Would the Minister agree that it is an undesirable practice to be exporting raw material when we should be processing it here?

The ideal thing would be to process that timber at home. When we have not the processing facilities to do that we are faced with the situation where it would cost us quite a considerable amount of money to thin the forests which must be thinned to allow the mature timber to grow. The arrangement we have entered into for a short-term period is one which enables us to gain a certain revenue and have someone else thin them for us and export them. It is not the ideal thing but it is the best we can do in the circumstances.

Is it correct that the country to which we are exporting this timber is Sweden?

I believe it is.

It is bringing coals to Newcastle.