Simon Coveney (Cork South Central, Fine Gael)
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Question 58: To ask the Minister for Agriculture, Fisheries and Food the role of Coillte in afforestation and the production of bio-mass for energy; and if he will make a statement on the matter. [24171/09]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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Coillte Teoranta was established as a private commercial company under the Forestry Act, 1988. One of the company's principal objects under the Act is to carry on the business of forestry and related activities on a commercial basis and in accordance with efficient silvicultural practices.

When it was first established in 1989 the company actively engaged in land acquisition for afforestation purposes and expansion of its estate. In latter years, it has reduced its land acquisition programme for a number of reasons, including reduced availability of land for sale, rising land prices and the company's ineligibility for forestry premiums. Since 2000, the company has focused on contributing to the afforestation programme through its farm partnership schemes, by providing forestry services to farmers and by promoting forestry investment.

In relation to the production of biomass for energy, while much of Coillte's timber supply is destined for processing, it will still be a significant provider of forest residues. The BioEnergy Action Plan for Ireland, published by the Department of Communications, Energy and Natural Resources in 2007 identified the slow pace of progress in developing a reliable supply chain from the private sector forest resource as a key factor inhibiting the development of a wood energy sector in Ireland.

Coillte advise that it has a pivotal role in working with the private sector to establish a robust supply chain. The company is working with the key stakeholders in the market and, in particular, with the bio-energy group under the auspices of the Department of Communications, Energy and Natural Resources. In order to refine its business model and strategy for approaching the market, the company has established a pilot depot in Co. Mayo. Coillte advise that, given its experience in the forestry sector and knowledge of the supply chain, it is well placed to play a leadership role in developing the sector.