Ciarán Cuffe (Dún Laoghaire, Green Party)
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Question 118: To ask the Minister for Agriculture and Food if her attention has been drawn to concerns in the timber industry regarding Coillte's proposed purchase of a plant (details supplied) in County Tipperary; her Department's position on the purchase, pending the completion of the Competition Authority's investigation; her views on whether such a purchase will damage competition in the industry; if she has met Coillte to discuss the proposed purchase; and if she will make a statement on the matter. [32921/06]

Mary Coughlan (Donegal South West, Fianna Fail)
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I am aware that the Irish Timber Council has expressed concerns in relation to the proposed purchase. My colleague, Mary Wallace TD, Minister of State at my Department with responsibility for forestry, met with representatives of the Council recently to discuss these concerns.

My Department's position on this matter is that the plant in question is of strategic significance to the forestry sector as it provides a market for thinnings and sawmill residues and it is important in that context that it remain a fully operational entity.

It is ultimately a matter for the Competition Authority to decide on whether the purchase of the plant will damage competition in the sector and the approval of the Competition Authority is required before any purchase can be concluded. The Competition Authority is carrying out a phase 2 investigation into the purchase and, as part of that process, invited interested parties to make submissions. The Authority has until 22 December 2006 to make a decision on this matter.

The proposed purchase of the plant in question has been the subject of various meetings between Coillte and my Department, and was considered by me, in accordance with the provisions of the Forestry Act, 1988, under which Coillte was established. I have also discussed the matter with senior management of Coillte Teoranta.