Dáil debates

Tuesday, 26 March 2013

Ceisteanna - Questions - Priority Questions

Coillte Harvesting Rights Sale

2:50 pm

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)
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To ask the Minister for Agriculture, Food and the Marine if he will ensure a supply of timber to the indigenous saw milling plants in view of the sale of the harvesting rights of Coillte forests; and if he will make a statement on the matter. [15362/13]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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This is a question relating to Coillte and is a real concern for many timber companies and sawmills. Due to the fact that 80% of their supply comes from Coillte forests, they are concerned about the implication for their businesses of the sale of harvesting rights in forests on which they rely for a steady supply to their sawmills and the potentially disruptive effect if this sale is not managed properly. I have a list of the ten significant sawmill companies in Ireland. I have spoken to many of them and visited some of them to see their facilities, in particular Glennon Brothers in Fermoy. I am very aware of this issue.

I can reassure people that this Government is not going to proceed with a sale that will undermine or damage the broader timber industry that relies on Coillte. If we do proceed, this will be a major factor in the consideration of how we proceed to ensure that long-term and medium-term supply contracts remain intact to ensure this industry continues to grow and expand to its potential. I am not in the business of making a broad policy decision to sell an asset for short-term cash for the State in a way that will inflict long-term damage on an industry. I can assure the House that this is not going to happen on my watch.

If we make a Government decision to proceed in the coming weeks, we will do so in a way that will ensure that not only will the public asset that is timber and the land on which it grows remain intact and available to the public from an access perspective but the position held by Coillte as practically a monopoly supplier of timber to the timber industry does not change significantly the capacity to access timber at affordable prices over medium-term to long-term supply contracts in the context of any sale.

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)
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In September 2012, the Minister said it would be necessary to protect sawmills' supply arrangement with Coillte in the event of the sale of harvesting rights and that nobody can stitch it into any sales process. That is good news to some degree. It is interesting to note that the Government's amendment to the motion put forward by the United Left Alliance acknowledges and confirms the concerns of the recreational bodies that replanting and biodiversity requirements be catered for in any sale but that there is no mention of the concerns of the sawmill sector. Many in this sector have expressed their concern to me that the amendment did not cover this. Will I be able to ask a supplementary question or will there be time?

3:00 pm

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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Yes, Deputy.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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I do not have the Government counter-motion to hand. I recall my own contribution to the debate on that motion and in which I made direct reference to the sawmilling sector. I refer the industry to my contribution. Regardless of what was said then, I wish to clarify for the record that we are not in the business of putting a viable and progressive sawmilling industry in Ireland out of business by mishandling a sale or proceeding with a sale in an inappropriate manner. As I have said many times, when the Government makes a decision there will be an opportunity for the House to scrutinise that decision and its consequences.

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)
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That causes a bit of a quandary. Obviously the Government must take care of the sawmilling sector but if a rider is inserted that sawmills must be taken care of in the sale, this will affect the price. The price currently being mooted is not really very good value for the State and this will make it even worse.


However, something else will affect the price - if a sale is the intention - unless something is done about it. Why has Coillte management refused to order a Garda investigation into volume weight fraud, despite being requested to do so on numerous occasions? When it was initially reported to the Garda Síochána, the complainants were told that a report would be compiled and sent to superior officers, after which the Garda Síochána would respond to the complainants. This has not happened. In fact, this morning, the Minister for Justice and Equality, Deputy Shatter, informed me:

I have now received the Garda report. I am informed that the Garda authorities are not aware of any ongoing investigation into systematic weight volume fraud at Coillte Teo.
The reported fraud is apparently costing the State - or this semi-State company - tens of millions of euro. Given that it has been reported on numerous occasions, why is no action being taken?

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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This has not been reported to me on numerous occasions. I am aware that the Deputy has raised this issue before. If the Deputy has evidence on which I can act, I ask him to give it to me and I will act upon it.

Photo of Luke FlanaganLuke Flanagan (Roscommon-South Leitrim, Independent)
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It has been given to the Garda Síochána.

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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With respect, I do not deal with the Garda Síochána; I deal with Coillte at company board level. If there are questions which need to be asked of the Coillte board about any type of fraudulent activity, I will follow up on that. However, I will not cast aspersions without having the supporting evidence.

On the more general point about a Government decision on harvesting rights, this may be frustrating for the Deputy but he may have to wait until the Government decides. He will then know the rationale for that decision and be able to scrutinise it, which is his right.