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Dáil
‹ Ceisteanna — Questions. Oral Answers. - Timber Marketing.

State timber marketing and tendering

Summary

The Minister defended the Department’s timber marketing operation while saying tender and quota systems were under review. Deputies challenged the tendering system and raised industry dissatisfaction; the Minister acknowledged complaints and noted that timber supply remained below demand.

asked the Minister for Fisheries and Forestry if he is satisfied with the operation and procedures of the marketing section of the forest and wildlife service of his Department; and if he will make a statement on the matter.

19.

Comment on this

asked the Minister for Fisheries and Forestry if he proposes to replace the current tendering system for disposal of timber to the Irish saw milling industry with a contract price system.

20.

Comment on this

asked the Minister for Fisheries and Forestry whether he is satisfied with the present tendering system operated by his Department for the sale of timber from State forests; whether he is aware of complaints that this system is uneconomic and inefficient; whether he will consider an alternative system; and if he will make a statement on the matter.

Comment on this

I propose to take Questions Nos. 18, 19 and 20 together. I have no doubt that my Department's timber marketing operation, which is entrusted to experienced administrative and technical staff, is being carried out efficiently and responsibly with due regard to the interests of the Exchequer and the needs of the industry.

In the light of on-going developments in the forest products sector, the principal methods of selling sawlog, namely, the tender and quota systems, are currently under examination by an inter-departmental committee whose findings are expected shortly. I will be reviewing the matter in the light of the committee's report, but meanwhile any variation in the existing sale arrangements would be inappropriate.

Comment on this

I am glad to hear that a review is going on. Will the Minister not accept that the growing and selling of timber is a commercial operation that needs to be carried out on sound commercial principles if it is to be successful? Further, will he not agree that within the Irish timber industry and the Forest and Wildlife Service of his Department there is widespread dissatisfaction with the way matters are handled, with the antiquated methods, the obsession with Civil Service routine and the absence of specialist marketing ability? Can the Minister give an indication as to whether the review will be carried out with a sense of urgency?

Comment on this

I accept that dissatisfaction has been expressed. In many cases allegations made in relation to this area of activity are unfounded. I accept that any system can be improved, and I hope the recommendations from the interdepartmental committee will result in improvements. No matter what we do in relation to large saw logs in particular where we can supply only 60 per cent of demand, and no matter what sales approach we adopt, we will not increase the ratio of supply and demand. At the moment there is a 40 per cent shortfall and until the end of this decade we will not have equilibrium in this area. I hope we can improve some of the methods we have adopted in the past but it will not improve the overall position of a shortage of timber, particularly in the large saw log area. In relation to small saw logs, there is the capacity to supply existing demand.

Comment on this