Michael Creed (Cork North West, Fine Gael)
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Question 1: To ask the Minister for Agriculture, Fisheries and Food if he was consulted on and approved of Coillte's proposal to become involved in nursing home development; and if he will make a statement on the matter. [17245/10]

Seán Connick (Wexford, Fianna Fail)
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My Department has been appraised of the details of Coillte's multi-annual business plan, as submitted in its strategy document, and is supportive of its business strategy.

The company's strategy document, Destination 2012: Make it Happen, submitted to the Department in April 2009 outlined a number of strategies for the future development of the company. Land development is one of those strategies and includes obtaining planning permission for housing and other developments that enhance the value of sites. This is a continuation of a strategy adopted by the company in the past two decades.

The strategy document described possible development projects, which included the development of nursing care facilities. Coillte identified a possible development opportunity in this area based on projected demographics.

The company carried out a feasibility study on the development of nursing care facilities on Coillte properties during the summer of 2009. Coillte advise that the opportunity for new nursing care facilities is strong, given a projected quadruple increase in the population of 65 years and upwards in the next 14 years, the introduction and strict application of new standards of facilities and operations under the auspices of the Health Information and Quality Authority, HIQA, and the introduction of legislation supporting deferred payment for access to facilities - the Fair Deal scheme - which will underpin the viability of nursing home operators.

In the course of its investigations Coillte met a number of potential developers of nursing care facilities who were interested in developing Coillte sites. One such company was Kilbrew Recuperation and Nursing Care, which currently operates an award winning nursing home and independent living facility at Curragha, County Meath.

Following discussions with Kilbrew, Coillte authorised the company to apply for planning permission on behalf of Coillte for five nursing care-independent living developments on Coillte property in December 2009. These planning submissions have been validated by the planning authorities and their designs have been verified to be in compliance with HIQA standards.

The company submitted applications as follows:

The current position on the five planning applications is that planning permission has been refused for the site in Wexford; the planning authorities have sought further information relating to the sites in Cork and Clare; and consideration of the applications for the remaining two sites in Galway and Mayo has been deferred.

Coillte has advised that the company's focus is on leveraging the development value of the land and that it is not its intention to get involved in operating nursing homes. Its intention is to realise the value of the sites by selling the planning permitted sites on to third parties.

Michael Creed (Cork North West, Fine Gael)
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At the outset I want to avail of the opportunity to congratulate the Minister of State, Deputy Connick, on his appointment. I am sure the Leas-Cheann Comhairle would wish to join me on that-----

Brendan Howlin (Wexford, Labour)
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I would, and have done so previously.

Michael Creed (Cork North West, Fine Gael)
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-----and to wish him well in his tenure as Minister of State. By way of observation, and then there were two, which begs the question: who now holds responsibility for the food portfolio? That is an issue for a later question.

At a time when Coillte and the State are missing all of the targets they set - the target in the renewed programme for Government is 10,000 hectares per annum - how appropriate is it that the State forestry body, Coillte, would be involved in nursing home development? The Minister of State will be aware, as I am sure is the Minister, Deputy Smith, that some years ago the question of an internal audit arose and findings against Coillte about State aid premiums being paid to the State forestry body. I do not know if that matter was ever resolved but is there a question in this instance that is equally applicable? We were here before Christmas approving a borrowing facility of up to €400 million for Coillte not knowing anything about the nursing home development. Does an issue arise in this instance about capital allowances being made available to a semi-State body which has support from the State in terms of its financial position? It is unfair competition. This is something that should not be countenanced. All of Coillte's resources should be put into developing forestry and related activities.

Seán Connick (Wexford, Fianna Fail)
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I thank the Deputy for raising his concerns with me but would point out to him that under the renewed programme for Government, to which he alluded, there is a strong commitment to forestry. I was somewhat enthused by my initial meetings, not just with the forestry liaison group but the officials within the Department and the other people I have met, and the renewed vigour about the forestry sector. It is one of the few indigenous industries. I am fortunate to have two in my folio in terms of fisheries also, an area in which we see great potential for further development.

Coillte has responsibility for almost 7% of the total land mass of this country. It averages out at about 4% per county and therefore is almost the equivalent of two counties. Surely the Deputy is not arguing the case that we should allow that quantity of land to be sterilised or not used for other purposes. There are opportunities that Coillte has identified. I met with the chief executive officer and the chairman of Coillte last week ahead of the report being published and was impressed with their commitment to the programme. As the Deputy is also aware, there is a review of the said forestry policy under which Coillte's operations will come up for review.

Michael Creed (Cork North West, Fine Gael)
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We had the publication of Coillte's profits and, regrettably, the trajectory is going in the wrong direction. The profits for 2009 are approximately €4 million. Given that we have legally binding targets to meet in respect of reducing our CO2 emissions, does the Minister not believe it is financially questionable - I believe it beggars belief - that the State would facilitate investment of scarce resources into nursing homes at a time when, if we do not invest in the core objective of Coillte, that is, afforestation and other biomass initiatives, we will be penalised financially? Coillte should be using every spare euro it has to drive the afforestation programme, which is way off target. It is fine to have 10,000 hectares under the renewed programme for Government but I remind the Minister that in 1994 we planted 20,000 hectares. In 2009, however, we planted 6,500 hectares. How will we increase that figure to 10,000 if we do not insist that Coillte drives all its resources into its core objective, which is afforestation?

Seán Connick (Wexford, Fianna Fail)
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The Deputy will understand it is an extremely difficult trading area for any company at this time, and Coillte is no different from any other company. It had a difficult year last year, as did many other companies in the country. There is a business focus to what it is trying to achieve. I would again point out to the Deputy that the interdepartmental group, with Coillte representation dealing exclusively with its functions and operations, is currently sitting and we hope to have a report on that later in the year. At that time we will lay the report before the Houses and the Deputy can repeat his comments at that stage but Coillte has a responsibility. There are opportunities. I see opportunities from the point of view of job creation, investment and a return to the Government and therefore I will support, as best I can, the opportunities that Coillte and the Department will identify to advance those particular opportunities.

Michael Creed (Cork North West, Fine Gael)
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Will it be compliant with State aid requirements?

Seán Connick (Wexford, Fianna Fail)
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I cannot answer that question. The Deputy will understand that in my new position that is something to which I cannot refer. I will raise the issue with my officials and ask them to respond to the Deputy directly on that issue.

Michael Creed (Cork North West, Fine Gael)
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Will they deal with the premiums paid to Coillte as well?