Brendan Howlin (Wexford, Labour) | Oireachtas source

As the House will be aware, the Government has initiated a programme of State asset disposals as part of commitments made in the programme for Government and under the EU-ECB-IMF financial assistance programme, with a view to generating resources for additional investment in job creation initiatives in the economy.

Various aspects of this disposal programme have been discussed at Cabinet on a number of occasions since the Government came to office in February 2011 and Ministers had a further opportunity to discuss the Coillte harvesting rights aspects of the programme during the Government meeting yesterday. On foot of yesterday's meeting, I can inform the House that the Government has agreed with the joint recommendation of myself and the Minister for Agriculture, Food and the Marine that now is not the appropriate time to proceed with the sale of harvesting rights in Coillte. Instead, the focus needs to be on the restructuring of Coillte as a company to address the issues that were identified in the reviews undertaken. To that end, I wish to further inform the House that Coillte is to undergo a fundamental restructuring, to be overseen by NewERA and the relevant stakeholder Departments, which will include operational streamlining, financial de-leveraging and a critical examination of the disposal options for its non-core activities such as telecoms and wind. A robust analysis will also be carried out to evaluate how to give effect to a beneficial merger of Coillte with Bord na Móna to create a streamlined and refocused commercial semi-State company operating in the bio-energy and forestry sectors, as committed to in the programme for Government. A priority in this regard will be the annual delivery of a material financial dividend to the State by Coillte. Finally, we intend to fill the significant number of vacancies that will arise on the Coillte board this year by persons with relevant experience and commercial expertise to drive the restructuring process and the merger with Bord na Móna if this is approved by Government.

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