Mary Ann O'Brien (Independent) | Oireachtas source

They are going for a flight but they will take the tunnel. I thank Mr. Gunning for coming in and I congratulate him on the presentation and superb level of innovation both in products and strategy. In particular I congratulate Mr. Gunning on the successful negotiation with IMPACT, SIPTU and the employees. Coillte has a culture to be envied.

Some of my questions will help all of us understand the business in more detail. Coillte's export sales are going well. Mr. Gunning renegotiated the rewards system of the sales team. Who sets the targets? What margin targets do they work to? What margin target does the Coillte sales machine work to? I am interested in the company's turnover. In 2010 turnover was €250 million and in 2011 it was €259 million. Curiously, Coillte's profit in 2010 was €32 million but in 2011 it was €19.9 million. I am suggesting that there was a good margin in 2010 of approximately 12.5% but the company almost halved its margin subsequently. I imagine there was a good reason for this but I would be interested to know it. How are the sales people rewarded? How are their margins set and how are they set for the entire company? The transformation programme is impressive as are the savings. Is this done through a lean manufacturing practice?

The Deputies who spoke before me covered most of my other questions. I agree with Deputy Ferris. Although it is only the harvesting rights, it is profoundly depressing that the Government has decided to instruct Coillte to sell. A total of €3 billion was the price referred to in the presentation. How was that calculation reached? The profits in 2007-----