Tony Killeen (Clare, Fianna Fail)

I will inform the Deputy why I believe this is the case. He made the point that we could have waited for the Forestry (Amendment) Bill and that was my initial preference. He also asked when it was notified. There has been a concern for a long period that it would be better in this case to have the borrowing requirement in the normal sense rather than under the provision for temporary borrowings. This matter has be ongoing for the length of time to which Deputy Sheehan adverted, some five or six years or longer. I would have preferred to address it in the main Bill but I took the view there was an urgency.

There is another urgency related to the reality of the current situation in the banking sector. There are two issues for every company - access to borrowing and the cost of such access. I believe Coillte will be in a more robust position in its dealing with banks when this legislation is, hopefully, passed. Deputy Sheehan also queried whether the borrowings comply with legislation and my view is that they do so. He also raised an important point about land use policy, a matter central to one of the reviews under way. We can discuss that matter in the committee or here at that stage.

Deputy Ferris referred to the need for a more proactive role in afforestation by Coillte. To be fair to the company, there is a question of land availability and a major question regarding the price of land. There is also a question because Coillte does not benefit in the way farmers and companies involved in afforestation do with long-term premiums. It competes with people in a position of considerable financial advantage, something we should keep in mind. Deputy Ferris also referred to EU planting levels which are vast by comparison with ours. It is worth remembering that one century ago only 1% of the land surface of Ireland was covered in forestry. That figure is now 10.5% and there has been considerable State investment in that change, some of which has come from the State and some from Coillte. We have come along a good deal. There is a target of 17% and we must find ways to address it. There are environmental concerns and various land use issues which arise. Although these are not central to this legislation, we will deal with them in a subsequent debate. The Deputy also referred to issues of employment, import substitution, increased isolation and farming viability all of which are important issues but none of which are related to the borrowing requirement of Coillte, although they are related to afforestation.

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