Mr. John Prior:

It is unusual. There is probably a historical background to it because pulp was almost impossible to sell and had hit rock bottom. In order to encourage pulp manufacturers into Ireland, Medite in Clonmel had to be given a long-term contract. That was the only basis upon which it would come in. The same situation applied to Louisiana-Pacific which was the original owner of the Waterford plant. Pulp is a different commodity than saw-log timber. It is a much more fluctuating market in terms of output and is susceptible to sudden requirements of supply. If there is a hurricane in America, everybody needs hoarding material. It is a cheap commodity and there are quiet years when no hoarding is required. However, a slightly different situation applies to pulp than to saw-log.

Deputy Ó Cuív has described the situation correctly. Saw-millers have the comfort of knowing that every year Coillte's supply of logs will be put on the market. They are given a five-year advance understanding of the scale of that, so they can plan accordingly in total confidence. That is quite different from the situation concerning private sellers such as IFUT, the Irish Forestry Unit Trust. If one looks at the latter's sales record, one will find that in a particular year, its sales of timber could be one-fourteenth - as it was in one recent instance - of what it is the subsequent year. One could not invest in a sawmill on the basis of a supplier who is going to hold back this year and offer a whole lot next year when the material is dearer.