Tony Killeen (Clare, Fianna Fail)

Investment in forestry has been a part of Government policy since the foundation of the State. This investment has contributed to a thriving wood processing sector which employs many thousands throughout Ireland, in both rural and urban areas.

The next part of my speech deals with COFORD and general issues of importance. However, in view of the fact I want to allow colleagues to have an opportunity to speak and that the delay was beyond my control, I will skip the next part.

On the role of Coillte in afforestation, when it was first established in 1989 the company actively engaged in land acquisition for afforestation purposes and expansion of its estate. In latter years, it has reduced its land acquisition programme for a number of reasons, including reduced availability of land for sale, rising land prices and the company's ineligibility for forestry premiums. Since 2000, the company has focused on contributing to the afforestation programme through its farm partnership schemes, by providing forestry services to farmers and by promoting forestry investment. Coillte is currently engaged with Bord na Móna in a joint venture to afforest cutaway bogs. The pilot phase of this project will commence next year with the planting of 200 hectares initially. It is proposed to plant up to 5,000 hectares over a number of years.

In the wider context, Coillte also has a pivotal role to play in renewable energy. Coillte is strategically positioning its forestry business and biomass resource to play an important part in contributing to the reduction in greenhouse gas emissions and climate change mitigation in Ireland. While much of Coillte's timber supply is destined for processing, the production of biomass for energy will still be significant for the company. The company is working with the key stakeholders, including the relevant Department, and has established a pilot depot in County Mayo. Coillte is also currently seeking to align itself with a leading technology company with demonstrable experience and a proven track record in the larger industrial biomass sector. Wind energy is also regarded as playing a major role in the achievement of the renewable energy targets.

I am sure members appreciate Coillte has developed significantly from the time of its establishment. I believe that for commercial and operational reasons, it is timely to revisit the level of statutory borrowings set down. As I said, the most appropriate level received a lot of consideration and €400 million was the amount considered appropriate at this time. I remind the House that agreeing to this increase does not mean that Coillte may automatically borrow to that level. The consent of both Ministers is required for the level of borrowings and requests will be the subject of scrutiny by both Departments. It is not envisaged that this proposed level will be sought in the immediate future. However, when it is being amended, it is important to provide for a sufficiently high level in the medium term. I commend the Bill to the House.

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