Mr. Mike Quinn:

It is pulp wood. If I may move on to the international biomass supply chain, there are two types of international biomass with which we are engaged at the moment. We import palm kernel shells which are used in the palm oil industry. They are coming in from Indonesia and Malaysia. We can call the second biomass woody biomass. We look to the USA, South America and Africa for that. There is a power company in the UK called Drax which has converted 50% of its capacity to biomass. Its model is that it went to the southern United States, took rights on the forestry for 20 years and built a wood pellet plant and shipping terminal and it now brings 900,000 tonnes of pellets back to the UK annually. It constructed two 450,000 tonne plants.

That is potentially one model that we may look at. I mentioned sourcing. There will be three streams: owned infrastructure, internationally sourced contracts on long-term agreements for ten or 15 years and domestic supply. I also mentioned that the risk of developing an international supply chain is pretty low because one can sell it on the open market. It is a commodity-based fuel stock.

In regard to future modules with Coillte, we have only one which we are working on, that is, the wind farms. The State proposes to have one company developing wind farms. We are taking our development pipeline and Coillte's development pipeline and currently evaluating whether we can merge the two and have one company to develop wind farms. We are not engaged with Coillte on any of the other projects, for example, anaerobic digestion, gasification or landfill gas.

I was asked about the number of employees. We have 500 to 600 seasonal employees depending on how late we start the harvest. Obviously, the later the harvest, the more people we need to try to catch up. It is our intention to keep the 2,200 FTEs long-term but the mix will change. There will probably be more seasonal employees than permanent employees. The overall FTEs will be the 2,200.

In respect of the €24.2 million, due to the reduction in volume we get almost €17 million or €18 million from sales. Some €8.7 million will come out of labour cost. The reason we need €8.7 million for labour costs is that 62% of the cost of producing peat is labour related, 38% is non-labour. As there is not enough in the 38% to achieve the €24.2 million, unfortunately we have to do something with the labour costs.