John Carty (Fianna Fail)

I welcome the Minister of State and thank him for his very comprehensive contribution on why the borrowings figure should be raised for Coillte which is to complimented on the work it has done in the 21 years since 1988. Senator Coffey spoke about many aspects of forestry which I we can enhance, particularly with reference to recreational facilities, on which much work has been done. I come from County Mayo where in Belleek woods, a hardwood forest on the verge of Ballina, the red squirrel has been reintroduced in recent years in conjunction with the Department of the Environment, Heritage and Local Government. This has been a huge success and added much to the tourism aspect of Ballina, where fishing is the prime attraction. The people involved are to be complimented. They received tremendous assistance from Coillte, the forestry service and the Department of the Environment, Heritage and Local Government.

It is delightful to see Coillte getting involved in a wind farm in County Leitrim which I hope will be a tremendous success. In these times we have to produce as much energy as possible and not depend on imported energy resources such as oil. I note that under the renewed programme for Government it is proposed to diversify forest culture with an emphasis being placed on native trees and to plant a minimum of 30% broadleaves annually in order that by 2030 there will be a major increase in plantations. That is very important. Now that the price of land has decreased, I appeal to Coillte to try to purchase large acreages of good land which could be used to produce hardwoods which take a long time to mature. I do not suppose anyone in the Chamber will see the day when they will mature, but it is important that we grow them for the generations to come. That is for whom we should plan.

Forestry provides much local employment. In County Mayo one of my family members is involved in the production of stakes using various timbers and employs five or six people. It is great to see the business, based in the countryside, doing so well and it could not operate without the raw material.

Between 2005 and 2008 the profit figures were €19 million, €22 million and €40 million. However, in 2008, the profit figure was €9.2 million, even though turnover was €249 million. I know dividends of €2.6 million were paid, but why was the profit figure so low? I am not giving out; many companies would be delighted to make a profit of €9.2 million and the employment of an average of 1,250 people is a huge bonus. Coillte is to be complimented on the work it has done. It has diversified into other businesses and has a huge export market; it exports approximately 80% through Smartply Europe based in Waterford and Medite Europe based in Clonmel. That is very good for the economy, as it proves that if we put our minds to it, we have the people and expertise to produce high quality timber products and diversify into other lines, which is of huge importance.

I commend the Bill to the House. I have not doubt it will be passed and give Coillte more flexibility. It was only able to borrow approximately €101 million, which figure is being extended to €400 million, which will enhance its position.