Oireachtas Joint and Select Committees

Wednesday, 15 January 2014

Joint Oireachtas Committee on Agriculture, Food and the Marine

Forestry Bill 2013: Irish Timber Council and IFFPA

1:20 pm

Mr. Pat Glennon:

We circulated three submissions. The back page of the submission we made to NewERA features a diagram that shows the breakdown of a typical crop of timber. Pulp wood is at the top, boxwood in the middle and saw log at the bottom. The price of pulp wood is approximately €20 per cu. m. Box wood costs approximately €55 per cu. m., while the price of saw log is €65 per cu. m. It is not the case that the sawmills are trying to commandeer a market. Our proposal would give the best return to taxpayers and stakeholders. It is far better to have logs go to the sawmills. We are not seeking handouts but to have all material placed on an open and transparent market to allow us to bid for it. There is too much inter-company trading between Coillte and the board mills. We have stated categorically that the board mills should be stand-alone companies as the potential for a conflict of interest is too great as matters stand. Timber should be placed on the open market and Coillte should be a stand-alone forest products company aggressively trying to achieve the afforestation target of planing 15,000 ha per annum. Incidentally, when Mr. Ivan Yates was Minister for Agriculture, he recommended an afforestation target of 25,000 ha per annum. When this target could not be met, we changed the goalposts and reduced it to 15,000 ha. Deputy Penrose is correct that the current rate of afforestation is approximately 7,500 ha per annum. We are a country mile behind the target.

To respond to Deputy Boyd Barrett, we are in full agreement on the aggressive afforestation targets. The hardwood versus softwood balance should be realigned and the minimum target for commercial softwood planting should be 15,000 ha per annum. While we do not advocate that hardwood planting should cease, our industry is starved of raw material.

To respond to Deputy Penrose, last year we imported between 350,000 and 400,000 cu. m. of timber and most of the mills are running at between 70% and 80% capacity. The industry is crying out for raw material, yet 35% of the new plantation last year was hardwood, for which we do not have an industry and which will not bear fruit, as it were, for approximately 100 years. The proportions should be rejigged.

I was not sure what the Deputy meant when he referred to a clash between sustainability and the commercial side. Forestry presents this country with a fabulous opportunity because it is one of few areas where we have a natural advantage over our competitors. Timber can be grown faster here than in the United Kingdom. We should maximise this advantage. One achieves sustainability by replanting and growing again.

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