Ms Bernie Gray:

Senator Conway-Walsh asked about a hard Brexit. The implications for Coillte of a hard Brexit are stark and probably unique among semi-State companies. This is because one of the key divisions in Coillte is wood processing which derives 40% of its revenue from the UK. The UK is the second largest importer of wood and wood products in the world and we have built up a large market there for our products. Coillte has taken extensive steps to prepare for what it knows about what a hard Brexit will mean. It is likely to mean the imposition of tariffs of up to 7%, thereby reducing margins. It is likely to result in delays in processing and transport. To counter that we should first look at Coillte's financial health. The company has a much stronger balance sheet now than it has ever had. Its capacity to sustain a reduction in margins is now much greater than it was previously as a consequence of all the work that has been done on the financial health of the company. Moreover, Coillte has stockpiled to some extent in the UK to give it a transition phase in the event that a hard Brexit occurs and to allow the market to adjust itself.

Given that the UK's need for forestry products, from Ireland and elsewhere, is so great, it is likely that there will be more macroeconomic initiatives taken by the UK to deal with the issue. Any imperfections or inefficiencies that occur in the market as a consequence of a hard Brexit should be mitigated over time because of necessity. Otherwise, there will be serious implications for the UK, not to speak of Ireland. In summary, Coillte is in a much better position than it has ever been in to deal with any reduction in margin occurring as the result of the imposition of tariffs. While it has significant exposure to the UK market, it has taken and plans a number of measures to mitigate that, at least in the early phases. In common with many others, we will have to wait and see what happens, but we are flexible enough to deal with whatever emerges.

On community and consultation, one of Coillte's key advantages, similar to Bord na Móna to which Deputy Corcoran Kennedy referred, is its staff. The company has a nationwide staff of foresters who are respected by local communities and understand and live in local communities. This gives Coillte a very good base to understand what is important to communities and how it should consult them. Coillte is also one of the primary companies involved in providing community gain funds. Where initiatives are taken which have implications locally, the company is prepared to invest through community gain and moneys into local activities to recognise the implications for local communities of any changes it may make.

On what Coillte will do in the future, as the company's range of activities increases and its diversification into using forestry for recreation and climate change purposes intensifies, it clearly recognises the need for ongoing consultation. The key issue will be the extent to which we can use our own staff on the ground who understand the issue from a community base to inform Coillte's approaches. This is something EirGrid did not have when it was rolling out its transmission development. As the former chairperson of EirGrid, I know what risks it ran as a consequence. Having a national resource through one's team is a major benefit and Coillte is committed to this.

I do not have specific details on flooding plans but I will revert to the committee on the matter. As part of the forestry management system, a flood plan is developed for each site where such a need occurs, and this is done on a dedicated basis. If members need any further detail beyond that, I will be happy to come back to them.

I thank Deputy Corcoran Kennedy for her remarks on the initiatives we have taken. These are part of an ongoing approach of strategic partnerships which Coillte wants to use for the future development of resources.

On bogs, I referred to the use of cutaway bogs and consultation with Bord na Móna where the opportunity exists and it is optimal to use this land for afforestation rather than turf production. We are in ongoing discussions with Bord na Móna in that respect.

On monoculture and diversity, it takes between 15 and 20 years for forests to mature. The science and technology behind forestry, no more than any other technologies, were in a different place 15 or 20 years ago. Coillte at that time made the best judgments it could in terms of its species diversity and its pattern of planting. As the science of forestry has improved, Coillte is constantly trying to incorporate new and emerging best practices into its current stock. However, that takes time. One cannot simply cut the trees down at a less than optimal place because it is clear that the mix or style of planting is wrong. However Coillte is very conscious, as part of its forestry management plan, how it will do that over time as the new science emerges. I was heartened to see the level of investment in technology to help Coillte use the asset.

One of the challenges with having such a large asset base is knowing what one has and where one has it. To optimise the asset, one must start from that premise and make the best use of science to go beyond the monoculture. Coillte has invested strongly in its forestry management system and it is heartening to see it combined with the local knowledge and expertise of the forestry staff who operate it.

On the question about bogland, I do not know how many bogs there are but I will revert to the Deputy in that regard.