asked the Minister for Fisheries and Forestry if, in view of the need for a comprehensive timber processing industry, he will state the reason the Government have decided not to purchase a company (details supplied) in Waterford in view of his powers under the Forestry Act, 1946; and if he will make a statement on the matter.

As I already informed the Deputy in reply to a question on 4 March 1980, it is not intended to take over or nationalise Munster Chipboard Limited.

The Government made every effort to achieve the re-opening of this mill and at one stage negotiations had been finalised with an Irish company. As the Deputy will be aware, the company concerned withdrew from the proposed takeover because of the action of a small group of picketers.

The operation of the particle board mill at Scarriff and of the proposed medium density fibreboard mill at Clonmel, together with other smaller existing outlets, will utilise all the smaller material coming from our forests for a considerable time to come.

Is the Minister saying that the sole reason why the takeover did not take place was because of a picket by a few people?

I believe that there was an Irish company actually ready to move into this mill and take it over and that the action of a small group of picketers dissuaded them from so doing. Subsequent events may also have led them to make that decision, but the action of the group of picketers in no way helped to encourage the company concerned to move into the Munster Chipboard premises.

Is there any possibility that the premises will be used for the processing of timber?

I am sure that the premises could be used for some other purpose, I did mention that with the particle board mill at Scarriff and the medium density fibreboard mill which will come on stream in 1983, we will utilise all the available small materials and have maximum utilisation of all the small timber available in our forests.

Is the Minister aware of the frustration of the former employees of this firm and, for that matter, of the people of Waterford generally, when they see this factory closed and when they see timber being exported through the port, the timber which was previously processed there?

I can share a definite kinship of interest there with the Deputy, because the people in Athy, where there was a wallboard factory, would have the very same sentiments. I assure the Deputy that timber being exported through the port of Waterford is a purely temporary measure. It is timber in excess of our present needs which nobody wanted. We got some people to take it for two or three years. These people are tied up after that. We have made provision since then that every bit of timber will be utilised in Clonmel, once that period is up.

A final supplementary, please.

Has the Minister any plans to set up a chemical pulp mill for the processing of timber?

No. Our decision has been made with regard to a medium density fibreboard mill which will take up all the available supplies. I have not heard anything about, nor do I anticipate in the short term, a chemical pulp mill being set up.

Is the Minister not aware that his predecessor forecast the setting up of such a mill by the late eighties?