Mr. Bill Stanley:

Yes. Where the landowner is only due to get 1% of the profits from clearfell, it is typically because he or she has been receiving significant payments throughout the full rotation of the crop. The commitment that we have given through our engagement with the IFA and others is that we are open to engaging with any of the partners where this is a source of anxiety and to considering, for example, replanting obligations and restructuring some of the elements of cashflow within the contract so that there is no risk of a negative cashflow at the partnership's termination.

If I may, I will refer to the way in which thinning profits and annuity payments are calculated and specifically the five-year review of profits, which is important and has been mentioned by a number of people. The review is a sensible clause in the contract and protects both partners' interests. I will explain how it works. It is a review of annuity payments that are due to the partners. The majority of partners are not yet at the stage where those annuity payments are payable to them. The annuity is designed to provide continuity of income once the forest service grant premium payments expire after 20 years. Critically, all profits that are generated from thinnings regardless of their timing are recognised in the calculation of these annuity payments. In advance of an annuity payment being due, we make a calculation of the forecasted profits from thinnings over the full rotation of the crop. In the majority of agreements, 80% of those profits are payable to the partner as an annuity payment. This amount is divided by the number of years from the date on which the premium payments expire to the date of clearfell, which gives the annual annuity payment to the landowner. For example, if 80% of the total thinning profits from a crop is €200,000 and there are 20 years remaining in the partnership from the expiry of grant premiums to the clearfell date, the landowner will receive an annuity of €10,000 per annum for 20 years. It is a simple calculation.

In all cases, the annuity commences after the expiry of premiums and gets paid until clearfell. All thinning profits are taken into account. When we start paying the annuity, it is based on a forecast of profits because we have not yet realised the profits. The purpose of the five-year review is to ensure that, as the partnership progresses, the annuity payment is reflecting reality rather than forecast.