Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Question 27: To ask the Minister for Communications; Energy and Natural Resources the position regarding the proposed creation of a new energy company through the merger of Coillte and Bord na Móna; and if he will make a statement on the matter. [6904/11]

Fergus O'Dowd (Louth, Fine Gael)
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In the context of the NewERA plan the Government commits to an ambitious strategy of accelerating the development of Ireland's forestry and bioenergy resources. Key to the realisation of this strategy is the plan to create a new State company, to be called BioEnergy Ireland, which will entail the merger of Bord na Móna and Coillte.

The Government envisages that the new company will become a global leader in the commercialisation of next-generation bioenergy technologies. In addition, it will oversee delivery of an annual 14,700 hectare afforestation programme. I will work with the Minister, Deputy Rabbitte, with the Minister for Agriculture, Marine and Food, and all relevant Ministers to develop a national bioenergy strategy as well as a comprehensive business case to underpin the merger of Bord na Móna and Coillte.

The systematic development of Ireland's abundant bioenergy resources will contribute to national security of energy supply and our renewable energy targets. Critically, it will support rural development by providing new markets and employment development opportunities for the agriculture, farming and forestry sectors.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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The McCarthy report was released - or leaked - in part at Christmas and given to the previous Government. Concerning some of the proposals relating to Coillte and Bord na Móna there was a report in the Sunday Business Post of December 12 that one option in respect of State assets and liabilities considered at the time was a merger of Coillte and Bord na Móna. Does this Government's policy proceed from the McCarthy report?

My understanding is that at that time some of the labour negotiators met Professor McCarthy in regard to the sale of €2 billion of State assets. What will happen the land currently owned by Coillte? Many people were very concerned some months ago when it appeared that an international forestry group was interested in purchasing it - a group, incidentally, chaired by a previous Taoiseach, Bertie Ahern. People were concerned regarding the actual land under forest. What is to happen Coillte lands with regard to the merger?

Fergus O'Dowd (Louth, Fine Gael)
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The key point is that what is being discussed is the setting up of a State company, not a private company, and one which will remain in State ownership. To put it a different way, in medieval times if one were going through the forests of Nottingham, the Sheriff of Nottingham's writ would have run there and the Robin Hoods of the day would have prevented him doing whatever he wanted to do. In this modern State these are the people's forests and will so remain.

I acknowledge the 150 different recreational and special amenity areas that Coillte hold and maintain throughout the country which provide fantastic public amenities for anybody and everybody. These will continue, absolutely. However, we need new synergies between the two State companies and our plan will bring this about.

The key point is that this will create new jobs, particularly in rural areas where at present there is no opportunity for employment, as all of us know.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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Perhaps I misunderstood and did not explain my point. When the forestry owned by Coillte has been harvested what does the Minister of State intend to do with that land?

Fergus O'Dowd (Louth, Fine Gael)
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It will remain in State ownership. Does the Deputy require references?

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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The land will remain in State ownership. Will it be replanted?

Fergus O'Dowd (Louth, Fine Gael)
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The problem at present is that by virtue of a European directive Coillte is prevented from benefiting from grants such as those farmers receive for reforestation and, therefore, there is an issue which must be tackled. I believe Coillte has not planted a tree since 1995 for that reason - perhaps I may be corrected by a Member with greater knowledge. We need new synergies to plant more trees. We need more jobs and we need to reduce our carbon footprint. One of the key points about forestry is that it is a carbon sink and will help us reduce our CO2 emissions, strengthen our competitiveness and will create more jobs locally. That is our plan.

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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If the land is not to be replanted what does the Minister of State intend to do with it?

Fergus O'Dowd (Louth, Fine Gael)
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At present Coillte cannot plant it because it cannot benefit-----

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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What will happen when the forests are harvested?

Fergus O'Dowd (Louth, Fine Gael)
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The idea is that the new company will have a new synergy and a new way of looking at this issue which is not the case at present. The only way we believe we can make it happen-----

Martin Ferris (Kerry North-West Limerick, Sinn Fein)
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The lands will not be sold.

Fergus O'Dowd (Louth, Fine Gael)
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-----is by the new company creating new jobs and new synergies. One cannot exclude the possibility that people might wish to co-invest with the State company.