Pat O'Neill (Fine Gael) | Oireachtas source

I welcome Mr. McKenna and wish him the best in his position as chairman of Coillte. I come from Kilkenny and I am aware of Smartply in south Kilkenny, which employs approximately 350 people, and Medite in Clonmel. They are two innovative companies and I have seen the new products they are hoping to produce.

Smartply is looking for investment of nearly €80 million for a new plant, which would guarantee the jobs in the company. If Coillte sells the harvesting rights on its land for 50 to 80 years, will the two companies, Medite and Smartply, be included in that sale or will they be kept in Coillte as independent companies? Where will they source their raw material? If Coillte's harvesting rights are sold will these companies be guaranteed supply or will they have to seek raw material on the open market?

Forestry requires a heavy capital investment because forests must be constantly replanted. I note that Coillte's profit last year was €19.9 million. I have seen the figures for the last few years. Companies such as Smartply and Medite were very profitable during the building boom. Their profits went down, but they are now on the way back up with new products. Does Coillte give a set percentage of its profit back to the Government? I think it is negotiated with the Minister of the day. If harvesting rights are sold off, what is the future for these two companies? Where will Smartply get its investment of €80 million? If the companies are sold with the harvesting rights, Coillte will not want its balance sheet to show that it invested €80 million in Smartply as this would make the company unattractive to a buyer, who would be buying a company with a debt of €80 million. I have been to see Smartply and I think the investment should be made. I know the sale of harvesting rights is holding up the decision on that. Could Mr. McKenna clarify the position?