Mr. Gerry Egan:

The question about Coillte doing more afforestation is interesting in the context of Food Harvest 2020, which aims to increase beef and milk production. Afforestation is happening at a rate of approximately 7,000 ha per annum, with the support of annual Government funding of €100 million or €110 million. The thrust of Government policy is that afforestation should be led by the private sector, namely, farmers who already own the land. While I understand why people expect Coillte, as the State forestry company, to do more afforestation, the policy keeps us out of that area and the incentives are directed towards other actors.

The clear message we are receiving from our shareholder Ministers is that, rather than necessarily investing money in that way, they would prefer to see proceeds from our business operations going back to the shareholder in the form of an enhanced dividend. From a policy point of view we are trying to square those different circles and ultimately fulfil the very clear objective we have been given from our shareholder, which is that a significant improvement in commercial performance, as per the Senator's question, in the form of a material dividend. It is on that aspect of our commercial performance that the company is focused.