Paudie Coffey (Fine Gael)

I welcome the Minister of State. The Bill provides us with a good opportunity to reflect on the forestry sector, management of our forestry resources, the sustainability of our forests and on new opportunities to exploit this significant natural resource to its full potential. Coillte has played a major role since 1988. Its remit has expanded and it is engaged in many activities other than planting forests such as the manufacture of panel products. Two of its companies are close to my constituency - Medite in Clonmel, County Tipperary, and Smartply in County Kilkenny. It is important that support is maintained in order that Coillte can avail of new opportunities.

The development of our carbon sink presents an opportunity. The more forests that are planted in a sustainable way, the better we will be able to counter carbon emissions. All parties are developing good green policies and it is important that Coillte plays its role and is seen to be productive in managing forestry plantation sustainably.

I am not sure why the borrowing threshold is being increased. I am conscious of one high profile case in which Coillte was involved last year relating to lands in County Waterford. The agency had a 150-year lease with a landowner, which was taken out in 1933 but, unfortunately, due to its failure to maintain the lands, a High Court action was taken against it. The outcome of the case was that Coillte should purchase 400 acres of the 900-acre estate it had leased at a minimal cost for €3.7 million. This resulted in a significant loss to the taxpayer, which is a pity. I hope similar cases will not recur in the future because we depend on State agencies to manage our resources to the best of their ability on behalf of the taxpayer.

What is the rationale for this legislation? Have all Coillte's borrowings to date complied with the current legislation? Is there a compliance issue? It is important that we learn from the past. The recreational opportunities our natural resources offer are positive. I visited Northern Ireland last summer. The Minister of State referred to only one forest park in County Roscommon but I appreciate his remit is wide. I visited four forest parks in County Down within ten miles of each other, including Tollymore Forest Park and Castlewellan Forest Park. They are more developed from a tourism perspective than our forest parks. We more or less allow people to walk around and orienteer in our forest parks. Caravan facilities, well signposted walking trails and other services for families are provided in Northern Ireland. They are a huge attraction, they are well promoted and they provide a cheap holiday for families. I appeal to the Minister of State to impress on the officials in Coillte the opportunity that exists to develop forest parks to attract domestic and foreign tourists. If they can do it in Northern Ireland in very similar circumstances, there is no reason whatever we cannot do it here also. There are lessons to be learned in this area.

Another area in which there is huge potential is that of mountain bike recreational facilities. It is developing massively, not only in Europe but across the world. I acknowledge that there are parks for mountain biking in Ballinastoe, Ballyhoura, Derroura and Portumna on Coillte lands. However, proposals have been made to develop a similar facility in the south east. More than 1,000 people use the Ballinastoe facility every month. This creates a demand for bed and breakfast accommodation, restaurants and public houses and a new dynamic is created. In Wales, a short trip from here, the Government invested heavily to derive benefits from mountain bike parks. It estimates that more than £5 million is generated for local economies from each mountain park created. Each park also creates between 54 and 60 maintenance jobs. It is a natural resource that does not involve huge overheads. It takes thinking outside the box to develop these facilities that will attract people, not only from the United Kingdom but from elsewhere in Europe and much further afield. We already have the natural facilities which they could be further developed at very little cost.

Outside the structural issues and the hard work of Coillte, there are recreational facilities and opportunities that should be exploited. Tourist facilities for families in forest parks is one such area, as is mountain biking. Proposals have been made in Waterford where the local authorities are engaged with Coillte. I appeal to the Minister of State that they be given every facility. We should think not so much in the old way but outside the box and facilitate the new ideas presented to Departments or agencies such as Coillte. Everyone would benefit, including the State and the communities in which the facilities would be operated.