Oireachtas Joint and Select Committees

Tuesday, 19 November 2013

Joint Oireachtas Committee on Agriculture, Food and the Marine

Annual Report 2012: Discussion with Coillte

4:00 pm

Photo of Michael McNamaraMichael McNamara (Clare, Labour) | Oireachtas source

Mr. Britchfield referred to the requirement on Coillte to reforest areas that have been felled. That would obviously include areas that have been felled but are largely unproductive or are unsuited to forestry. I am aware of a number of areas in Slieve Aughty which were planted in good faith in the 1960s but which have not been felled because the growth is too poor. From an environmental and visual perspective, the areas would be better off had they never been planted. It is uneconomical for Coillte to fell the trees in these areas and, furthermore, they would have to be replanted. Is the area of law to which Mr. Britchfield referred something the Government should be considering in the context of forestry legislation?

He indicated that the supports for CHP plants are insufficient and that it is uneconomical to pay for the fibre. Correct me if I am wrong but I understand Coillte refuses to enter into long-term supply contracts. I am referring not only to finished timber which can be used for construction but also to thinnings. In the absence of guaranteed supply, no investor will establish a CHP plant. Coillte is supplying bioenergy in some instances. Are these Coillte's plants or is it providing thinnings and raw material? Has the company considered signing supply contracts that would enable communities with a significant Coillte presence, such as in County Clare, which is one of the most afforested counties in Ireland, to establish CHP plants?

Mr. Britchfield skirted around the issue of mergers with Bord na Móna. He told us considerably less than has been published in last Sunday's newspapers. The Sunday Times reported that the idea is being scrapped because Coillte is unhappy with the proposed cost saving measures. The Sunday Independent reported that Coillte's former CEO, Mr. Gunning, claimed to be owed money by the company even though he earned €498,000 per year. There is a perception that Coillte has been selling land to pay for ongoing expenses, including exorbitant salaries for upper management, for many years but has managed to hide it in its accounting system. It has been suggested that it is a loss-making operation and that its model is entirely unsustainable and in radical need of overhaul. Bord na Móna is already a fairly unsuccessful company but next to Coillte it looks like a good operation. I appreciate that Mr. Britchfield may not wish to comment on media leaks but I expect more detailed answers to my first questions.

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