Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

That is a series of valid questions. The Deputy is correct in respect of the mills in that most commercial mills are at full production. Many of them obtain 80% or more of their timber from Coillte forests and many have long-term supply contracts in place with Coillte. We will need to protect these supply contracts to ensure that if the forest, not land, ownership structure changes, one can stitch it into any sales process. This has been done successfully in other parts of the world. If we cannot do this, naturally we will have difficulties. I am not in the business of supporting any process that would put the timber sector out of business, an industry that has survived through a rather different building recession in Ireland.

On the management of the crop, it may well be the case that Coillte will continue to manage its forests, but it will no longer own them on behalf of the State. A series of financing models for any new ownership structure may be considered, but one may find that at the end of the process, if it is concluded successfully, Coillte will be essentially on a contract to manage the 1 million hectares or so of trees and more or less continue what it does, except that its management could be obliged to have a commercial relationship with the new owner. I would be slow to move away from the current replanting obligation, whereby Coillte plants approximately 15 million trees per year. In other words, when Coillte harvests them, it must replace the crop by planting. I expect any new owner to have the same obligation.

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