Simon Coveney (Cork South Central, Fine Gael)

Although Deputy O'Dea is not present, I will read the reply into the record. Coillte was one of 28 commercial state bodies reviewed by the review group on State assets and liabilities, chaired by Mr. Colm McCarthy, which reported in April 2011. There were three recommendations in the section dealing with Coillte, one of which was that the State should initiate the disposal of Coillte's forest and non-forest assets but not its forest land. My Department has considered the recommendations in the report and I also asked Deloitte on a pro bono basis to examine the recommendations in the McCarthy report as they apply to my Department, including Coillte. The analysis and possible outcomes from this work will be considered by the Government, along with the future of other assets, in the context of the work of NewERA.

Coillte was established as a private commercial company under the Forestry Act 1988 and currently manages some 442,000 ha of land, of which some 390,000 ha is under forestry. It also plays a significant role in the provision of forest recreational activities, which was evident from the participation in National Trails Day last weekend. Given its extensive forest holdings and its role as main supplier of timber to Irish sawmills, it is a key player in the Irish forestry business. The group's two panel processing companies, Smartply Europe Limited and Medite Europe Limited, also export significant volumes of wood panelling. The review report recommends the disposal of Coillte's forest and non-forest assets but not its forest land. However, there are still a number of considerations and options arising from that recommendation.

As I outlined to the House in an Adjournment debate on this issue in June, it is essential to maximise the information available to the Government to make an informed, sensible and well-thought out decision that will not compromise the State's core asset, which is the land Coillte manages on behalf of its shareholders, amounting to some 7% of our land mass. NewERA can play an important role in this process. To assist in its examination of options for the possible disposal of assets in general, the Government has requested the Department of Public Expenditure and Reform, in consultation with relevant line Departments, such as my own, and NewERA, to consider a number of possible candidates for disposal. The Government will be advised on the appropriate valuations to be placed on the assets in question, and on the most appropriate method of disposal, likely timeframe and economic impact of any such disposal to inform any further decisions that the Government may wish to make in this regard.

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