Written answers

Tuesday, 16 April 2013

Department of Agriculture, Food and the Marine

Forestry Sector

Photo of Nicky McFaddenNicky McFadden (Longford-Westmeath, Fine Gael)
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To ask the Minister for Agriculture, Food and the Marine if his attention has been drawn to the report of the Irish Timber Council which sets out views on the proposed sale of Coillte's harvesting rights; if he has considered the contents of the report; and if he will make a statement on the matter. [16444/13]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The Chairman of the Irish Timber Council sent me a copy of the report, namely “The impacts on the sawmill sector arising from the proposed sale of Coillte’s harvesting rights" by EPS Consulting, at the time of its publication in February. The report, commissioned by the Irish Timber Council, is appreciated as it clearly outlines the concerns of the timber processing sector about the proposed sale of Coillte harvesting rights and makes a useful contribution to the ongoing analysis.

As the Deputy may be aware, further to the Government’s decision that a concession for the harvesting rights to Coillte’s forests be considered for sale, the National Treasury Management Agency, via its NewERA Unit, engaged with Coillte, the Department of Public Expenditure and Reform and my Department to examine the financial and other implications of a potential transaction. Substantial work has been undertaken to date on the identification of the forestry assets involved, the determination of their value and the consideration of a number of issues associated with the proposed sale of the harvesting rights. One issue of particular importance to the sector as a whole is the continuity of supply of timber to the processing industry. As part of the consideration process outlined above, the Coillte State Assets Steering Group, comprising of representatives from NewERA, the Department of Public Expenditure and Reform and my Department, met with representatives of the Irish Timber Council on 13 March 2013 at which the industry expressed their concerns regarding the proposed sale of Coillte harvesting rights. I am aware that the Council’s main concerns are the continuity of supply of timber to the sawmill sector, the potential prices of timber and the overall implications for their businesses and jobs. In addition to this meeting, the Steering Group is also considering the report, to which the Deputy refers.

The outcome of the overall analysis on the proposed sale of Coillte harvesting rights will be considered by the Government upon its conclusion and no decision has been taken as yet.

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