Mr. Jean-Paul Deveau:

The first question was on why Arramara Teoranta was bought as opposed to taking a different approach. In Canada, we have two operations that are very similar to that of Arramara. We saw it as a fantastic opportunity to be able to transfer the technologies we have developed in Canada with respect to processing, resource management and the application of products to Ireland, and to use Ireland as a base from which to start. By way of example, over recent weeks we sent Irish harvesters, hauliers and management to Canada and brought Canadian resource scientists, managers and engineers here in the first stages of this transfer of technology. Last week, as I mentioned, we announced our initial investment of €2 million in Arramara. This is really our first step. The investments here will be in research and development, marketing, quality improvements and capital expansion.

This relates to the next item. I apologise to the Deputy for not having responded to the question on the closing of Arramara. The Deputy asked whether we would walk away if we did not get a licence. There is no question that we regard these investments as very long-term. We have a track record in Canada in this regard. We believe tremendously in the potential of Ireland. Irrespective of whether we receive a licence, we believe we will be treated fairly here and in a proper manner if we show we can make the right investments, work with the other players in the industries here and do what is required to build an industry. We certainly believe the initial investments can be justified without a licence but, with a licence, we believe we can do a lot more in the future.

I would like to address the issue of co-operatives. Certainly, there have been many areas in which co-operatives have been quite successful. Let me outline the challenge I envisage in a co-operative-type environment. Mr. O'Sullivan spoke about the challenges associated with the Chinese fracking industry. At times there can be blips in demand for raw materials. It would not be unusual for the Chinese to be able, all of a sudden, to offer a higher price to the harvesters at co-operative level and take it all. Obviously there are those here who feel that is an appropriate way of operating. I refer to harvesters getting the harvest price. The challenge here is that if all of a sudden the Chinese took all the harvest, it would be very detrimental to the Irish industry, which is creating value-added products. In other words, the other companies and ourselves would not have the security of supply for the longer term.

In determining the common good, it is best to have a strong and vibrant industry that has access to supply. We should not be looking at ways of allowing for a short-term opportunistic form of behaviour, be it at harvester level, industry level or any other. We want good, long-term investments. The challenge is arriving at a trade-off such that everybody wins, thereby allowing the harvesters and industry to do well and Ireland to be at the level it should be at in leading the world with this tremendous resource.