Andrew Doyle (Wicklow, Fine Gael) | Oireachtas source

I also welcome the debate. It is necessary for us to conduct a series of debates and thrash out this proposal and the possible benefit or otherwise. I will provide some background information. In April 2011, the McCarthy report made the point that Coillte reported aggregate pre-tax profits of €204 million in 2009, with profits from land sales accounting for 70% of this amount and profits from sales from immature forests accounting for a further 17%. Profit from forestry and downstream operations including log sales and CPP, which were traditionally the core operations, accounted for just 13% of the company's profits.

Deputies on the opposite side of the House have acknowledged that Coillte is not a perfect model and certainly needs to be looked at. The reason we are looking at it is that, under the deal with the troika, we have undertaken to examine the possibility of selling €3 billion worth of State assets. While this is regrettable and is because of the economic position we are in, it is an opportunity to examine all State assets, run the rule over them and see if there is value in the sale of some of them - in Coillte's case, the harvesting rights. However, we should bear a few things in mind. A total of 47% of the forest estate in the country is privately owned, although it is not as mature and is not in a cycle of maturity.

All new afforestation is being done by the private sector. Carbon sequestration has been mentioned. Only new plantations since 1990 can be considered under the current agreement and under Towards 2020. We must reduce our greenhouse gas emissions. In the last Dáil I was rapporteur for the climate change committee which reported on how to calculate the value of forestry in land use. Heavy machinery is a necessary tool for working in forestry. Coillte has the right to move or alter the Wicklow Way - but not to close it - during harvesting.

I refer to three existing reports. The Coillte report has been forwarded to the steering group which will make a report in conjunction with NewERA and present options to the Government by the end of next month with further consideration and no determination until the end of quarter two or early in quarter three. EPS Consultants carried out a survey on behalf of the sawmills processors. Mr. Bacon has also made a report. There are seven points common to the reports. The seven core issues include the impact on timber processing and the timber processing sector; the viability of the remaining entity; the impact on employment, including the Coillte pension fund; the Coillte debt and bank loans; the replanting obligations; recreation and the public good; smart-ply investment. Coillte has three core activities which are the forest estate; smart-ply board mill industry and product development in conjunction with the private sector processors; windmills and renewable energy. Coillte continues to have a public service obligation which it argues is not the most economic or efficient method of supplying wood chip to the peat-burning stations for co-firing.

I am the Chairman of the Joint Committee on Agriculture, Food and the Marine. The chief executive of Coillte and also the chairman have attended the committee last October and November. We intend to invite all the statutory bodies to attend the committee as well as the processors, the nurseries, the forestry management companies, the recreational users and the trade unions. It is hoped these hearings will provide an informed consideration for the Government. I urge the Government to take time to consider all the deliberations of the committee on this matter. The committees have proven to be productive fora. I welcome the fact that this debate is being conducted in a mature fashion and that all speakers are allowed to make their points. The points raised in the original motion are valid for consideration.

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