Mr. David Gunning:

I will not comment on that particular topic. We will engage in the consultation process. The bigger issue concerns how we will achieve the targets. It is very important that we look at this at the top level. We have a big target to achieve. We need to get on with achieving it so let us not put any further obstacles in the way. That is my approach.

There have been comments on the sale of harvesting rights, the sale of the crop and so on. There has been much loose language in this regard. The Chairman brought the focus back to what exactly the Government has decided. We are talking about the sale of harvesting rights of Coillte's estate for a period of 50 to 80 years. We have already mentioned the issue of minerals. There has been no mention of land sales. These have been excluded in terms of the decision.

Since the end of 2011, I as board member and chief executive, and other senior executives and members of staff in Coillte have been engaged in an intensive process with NewERA and the Departments of Agriculture, Food and the Marine and the Department of Public Expenditure and Reform. There has been significant dialogue and discussion. We provided a significant input into the process which resulted in the Government decision at the end of June. We were involved in works on valuations and various other activity. More important, we were involved in identifying issues associated with this transaction or form of transaction.

I want to make sure that members are aware of the fact that we are right in the middle of this particular activity.

There are executives in all companies but the shareholders actually own the business. They have certain liberties as well as responsibilities and are allowed to make decisions. The Government, as the shareholder in this case, has made a decision, in principle at least, in relation to Coillte. The responsibility of the board and management is to give effect to that decision. We are doing that currently by working very closely with NewERA. At present, a broad range of issues is being discussed and analysed by us in conjunction with the Department of Agriculture, Food and the Marine, primarily, and NewERA. One such issue is the potential impact of a transaction on the timber processing sector. In that context, we are analysing timber supply to the sector and the central role that Coillte plays in that regard.

Another important issue concerns the viability of the remaining entity, should the transaction happen. Employee issues are also being discussed, including the pension fund liabilities. There are also issues concerning employment, transfer of undertakings to new owners and so forth, that need to be taken into account. The Coillte pension fund has a deficit of €122 million, as detailed in our annual report and that is one of the work streams we are looking at in partnership with NewERA.

In terms of the replanting obligation, like any other landlord in Ireland, Coillte must apply for a felling licence. One of the conditions of that licence, which is granted by the forest service, is that we must replant the area within a specified period, generally within 12 months of the felling being completed. A key item being examined at the moment is who will have the responsibility and who will incur the cost of such replanting. We are also discussing Coillte's debt and bank commitments. In round figures, by the end of this year, Coillte's debt will be approximately €180 million. The providers of that debt, namely, the banks, have reasonable expectations that, in the event of a transaction, this debt will be repaid.

Another item of concern is the issue of recreation and public good, which is currently being examined to ascertain how it will be addressed. The SmartPly reinvestment decision is also under discussion with NewERA, the Department of Agriculture, Food and the Marine and the Department of Public Expenditure and Reform. That is the breadth of the issues that have been identified jointly by all of the parties concerned.