Luke Flanagan (Roscommon-South Leitrim, Independent)
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To ask the Minister for Agriculture, Food and the Marine the reason Coillte failed to correctly predict the future supply of round logs that was to be available to the saw milling industry here from the forests that they manage; his views on whether the prediction of a rising future supply of round logs encouraged sawmillers to invest in plant, and thus creating a competitive saw milling industry with more processing capacity than the annual supply of mature round logs could meet; if anyone has been held to account for this misdirection; and if he will make a statement on the matter. [54412/12]

Simon Coveney (Cork South Central, Fine Gael)
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Coillte Teoranta was established as a private commercial company under the Forestry Act, 1988 and day-to-day operational matters, such as timber supply forecasts, are the responsibility of the company. I understand that Coillte produces forecasts of the gross standing volume of roundwood in its estate, which form the basis for the company’s annual supply programme and its offer to its customers. This forecasted volume is validated on an annual basis through Coillte’s Roundwood Supply Document, which it shares with the wood industry, to ensure that Coillte meets its gross volume targets as set out in its Forecast.

As part of its commitment, Coillte regularly, on a 5 year rolling basis, publishes a forecast of potential roundwood supply. In the recent past this was done in 2000 (covering the 2000-2005 period), 2005 (covering the 2006-2010 period) and again in 2010 (covering the period 2011-2015). The roundwood volumes documented in these Forecasts are gross standing volume in the wood i.e. volume down to 7cm top diameter. I also understand that it is always made clear in the accompanying notes to Roundwood Supply Forecasts, each document represents an estimate of the gross standing volume in the period in broad timber dimension categories, i.e. top diameter class 7cm-13cm, 14cm-19cm and 20+cm. The forecast is not of sawlog, pulpwood and other log products that enter a wood processing mill.

As I mentioned, Coillte shares these Forecasts with its customers and the forecast figures go to make up the company’s annual supply programme and its offer to their sawmill customers. I consider that the investment in the development of processing facilities is a commercial decision for individual companies.

Luke Flanagan (Roscommon-South Leitrim, Independent)
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To ask the Minister for Agriculture, Food and the Marine his views on the threat that the sale of Coillte forests will have on the future of the sawmilling industry here and the thousands of jobs therein and that the sale of such national assets will also threaten the future of downstream processing of timber as timber will be exported in the round to other countries; if his attention has been drawn to the fact that this happened in New Zealand; and if he will make a statement on the matter. [54415/12]

Simon Coveney (Cork South Central, Fine Gael)
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Further to the Government decision that a concession for the harvesting rights to Coillte’s forests be considered for sale, Coillte Board and management have been actively engaged in recent months with NewERA, the Department of Public Expenditure and Reform and my Department to examine the financial and other implications of developing the potential of Coillte’s forest assets.

The process is at an advanced stage and, aside from the valuation of the forestry assets, a number of issues have been identified in relation to the possible harvesting rights concession. These include, inter alia, the possible impact to the timber industry, environmental and social impacts and consequential implications for the company and its levels of employment These issues each require detailed consideration. Case studies of the sale of State owned forestry in other countries, including New Zealand, has formed part of the analysis to date.

In relation to the supply of timber to the processing sector, the Government is committed to developing and managing Ireland’s forestry resource in a manner which will ensure sustainable output and growth into the future. Total roundwood harvest during 2011 was approximately 2.7 million cubic metres. The All Ireland Roundwood Production Forecast, published by my Department in 2011, estimates that annual net realisable roundwood volume production for the island of Ireland will increase to 6.17 million cubic metres by 2020. Of this, approximately 2.5 million cubic metres (c. 40%) is expected to come from private sector forests. These figures and particularly the increase in private timber production are excellent indicators for future growth in our forestry sector.