Oireachtas Joint and Select Committees

Tuesday, 3 December 2019

Joint Oireachtas Committee on Agriculture, Food and the Marine

Coillte Annual Report 2018: Discussion

Mr. Mark Carlin:

The Deputy asked a few different questions. The major issue he raised regarding the harvesting contractors was felling licences, which Ms Gray has dealt with. There is no doubt that this is a short-term challenge. We have to recognise that, but the sector is very viable in the longer term. The industry will double in the next five years and there will be fantastic opportunities for contractors to grow. We are trying to ensure our contract is a five-year contract. Gone are the days of a contractor only having enough work for the next few months and not knowing when it was coming. We wanted to move into more of a partnership approach with our contractors. That is very important. There is a short-term challenge but the longer-term health of the industry is looking good.

The Deputy made a good point about marginal land, which is a real challenge. How do we deal with the 8,000 ha? What are we competing with? There is so much competition for the land, but marginal land is available. We need to look at what forestry model we need, which goes back to Ms Gray's point on the land use policy. If we could identify areas of the country that were suitable for forestry, taking into account carbon, biodiversity and everything else, we could make sure our forest policy was well aimed and well aligned with the potential of the land. We need to open our thinking a bit more in terms of bringing in more marginal land. Equally, we have planted in organic soils and deep peats in the past where perhaps we should not have. We need to bring fresh thinking to this area, and Coillte will contribute to that conversation and debate.

The Deputy asked about planting a 15-year premium and then not getting any cash for 15 years. This is a challenge for private owners and individuals, particularly when they come off premia. Coillte is exploring whether it would be possible to allow the continuation of the premia to the end of the rotation, by bringing forward the value of the asset and paying it in annuities through the rotation of the crop, thus allowing farmers to access the capital as they go along. That is something-----

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