Oireachtas Joint and Select Committees

Tuesday, 3 December 2019

Joint Oireachtas Committee on Agriculture, Food and the Marine

Coillte Annual Report 2018: Discussion

Ms Bernie Gray:

I will reply to the questions and pass them to my colleagues as appropriate. On the last point made by Deputy Penrose, Coillte is conscious that it is one of the major players in the forestry sector in Ireland. It is very conscious of the 12,000 jobs the sector provides and of the contribution it makes to the economy of €2.3 billion overall.

If the sector does not perform well, it will be bad for everybody in the sector. It is in everybody's mutual interest that the sector thrives.

On the overall issues, such as the status of forestry and its significance as part of the climate action plan, we are conscious that Coillte has a significant role to play. The main enablers that would help us to do that include a national land use policy, which does not exist; a prioritisation of forestry as the main element overall, not just for Coillte but also for the private sector; and a roll-out of processes within the forestry sector, both for the approval of felling licences and the appeals mechanism that is currently a part of the process, that are robust and allow the forestry sector to thrive.

Although Coillte is returning to the area of commercial forests, it is limited by the availability of land. While it can acquire farm partnerships, which it has done in a number of cases, and while it can acquire other lands, other interests held by pension funds or other investment vehicles, that will not be a net increase in afforestation for the country. While it will increase Coillte's shareholding, it will not increase the national holding. We have been in discussions with the Department in recent months since the plan was introduced on how best to provide a roadmap in the national interest, and Coillte is not the only player in that regard. Part of Coillte's commitment to having a dialogue in the sector is its support of the Forestry Ireland initiative, which is the first time in the State's history that all the voices in the forestry sector have come together. All of them have a number of mutual interests to be served, and it is in Ireland's interest that the sector as a whole will move forward.

They are some of the initiatives the Coillte has taken and some of the practical discussions we have engaged in. We are clear about what is needed on a national level to help not just Coillte but other members of the sector to perform their role, and we will continue those discussions. We are disappointed with the progress in respect of felling licences. We have been in active discussions at the highest level with the Department and the Minister in recent weeks and they will continue this week. While it is a significant issue for Coillte - it is currently our number one risk - we fully appreciate the impact it has for private operators in the sector. There are two interests, the first of which is to overcome the immediate tactical issues about the process in place and the accompanying appeals process. Our second, more enduring interest is to put in place a more sustainable process for the future. Otherwise, the forestry sector, as well as Ireland's contribution to mitigating climate change through the forestry sector, will be impaired. That is not in anyone's interest and we are conscious of that.

On its stated position on employment, Coillte is not averse to increasing employment where it is warranted. We seek to balance our commercial and non-commercial mandates as provided for in the Forestry Act. If we were to increase afforestation and assume the 8,000 ha target outlined in the plan, it would cost Coillte on average approximately €100 million per year. That is because Coillte does not have access to grants or premia that are available to the private sector. If we did have such access, the cost would reduce to €20 million, which would be a much more viable option for Coillte to engage in. We have been in active discussions with the Department and made a submission to the EU in respect of the risks of state aid that apply to determine whether we can mitigate the risk and move forward in the interests of both Ireland and Coillte.

A number of Deputy Cahill's questions related to forestry. I will hand over to my colleague, Mr. Carlin, in the first instance to deal with them, after which Ms Hurley might address a number of the other questions that were asked.